Rebalancing - which allocation?

[purplesky]

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Originally Posted by mathjak107 fidelity has an extended market fund FSEMX or vanguard VEXMX if you want total market coverage in an effective manner then an s&p 500 fund and an extended market fund is the way to go . other wise all you really have with a total market fund is a large cap fund anyway.

Thanks for the suggestion. I really don't own that much small cap and mid cap so this fund FSEMX is a great choice to mix allocation with my large cap.

LIBERTY GLOBAL PLC CL C
LINKEDIN CORP CL A
ILLUMINA INC
UNITED CONTINENTAL HLDGS INC
TWITTER INC
LAS VEGAS SANDS CORP
BIOMARIN PHARMACEUTICAL INC
TESLA MOTORS INC
CHENIERE ENERGY INC
CHARTER COMMUNICATIONS CL A

I like the top 10 holdings.

The Vanguard Extended Market ETF (VXF) also looks like a good way to go.

[mathjak107]

your welcome. much better choice than mixing a total market fund with an s&p fund.

the name total market fund is very deceiving . while yes it contains thousands of other stocks the way it is weighted not only do the s&p stocks control the entire fund but did you know that the top 50 holdings in an s&p fund can out weigh the other 450 and negate their moves too.

[target2019]

You can go with total market etf or fund as the core. Then add small value or extended to tilt more in that direction.

For example, in my SEP I hold total market as a core fund. Over in Roth there is small value. In 401k there is extended market. My example is more complicated.

Two funds is enough to cover the US market for the OP, as Mathjak describes.

[purplesky]

Quote:

Originally Posted by mathjak107 your welcome. much better choice than mixing a total market fund with an s&p fund. the name total market fund is very deceiving . while yes it contains thousands of other stocks the way it is weighted not only do the s&p stocks control the entire fund but did you know that the top 50 holdings in an s&p fund can out weigh the other 450 and negate their moves too.

Yes I do occasionally look at how the funds are weighted. I have noticed that many funds own the same mix of stocks but since they are great companies that I know and like I am comfortable with the overlap.


Top Ten Securities1 in SP 500.

Apple Inc.
Exxon Mobil Corp.
Microsoft Corp.
Johnson & Johnson
Berkshire Hathaway Inc. Class B Wells Fargo & Co.
General Electric Co.
JPMorgan Chase & Co.
Procter & Gamble Company Pfizer Inc.

In my 401k I have 15% in the Russell 2000 and 15% in the SP 400.

I will now start to focus more on extended index ETFs outside of my 401k.

[purplesky]

Quote:

Originally Posted by target2019 You can go with total market etf or fund as the core. Then add small value or extended to tilt more in that direction. For example, in my SEP I hold total market as a core fund. Over in Roth there is small value. In 401k there is extended market. My example is more complicated. Two funds is enough to cover the US market for the OP, as Mathjak describes.

I do own VTI in my Vanguard Roth. My 401k doesn't offer a total stock market fund but there is a SP 500 index fund and I have about 35% in that.

I hope the OP is following Mathjak and your suggestions.

[eroscott]

I've used Financial Engines for 15+ years. You can adjust your risk level to be given rebalance advice. It looks at all your assets (spouses, 401ks, IRAs, etc) in this balancing.

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