Trying to reorganize and simplify our portfolio. We have money in both Fido Total Market and 500 index funds, among others. They seem to be quite similar. I think I should consolidate these two, but into which?
Are you planning to be financially independent as early as possible so you can live life on your own terms? Discuss successful investing strategies, asset allocation models, tax strategies and other related topics in our online forum community. Our members range from young folks just starting their journey to financial independence, military retirees and even multimillionaires. No matter where you fit in you'll find that Early-Retirement.org is a great community to join. Best of all it's totally FREE!
You are currently viewing our boards as a guest so you have limited access to our community. Please take the time to register and you will gain a lot of great new features including; the ability to participate in discussions, network with our members, see fewer ads, upload photographs, create a retirement blog, send private messages and so much, much more!
S&P 500 funds hold about 15% of US listed stocks, but that small slice comprises about 80% of the US market cap. So those who advocate them argue correctly that they are "almost" total market funds.
I see no reason to go with "almost" when I can buy the whole market so easily.
There are also concerns that the 500 market cap is dominated by just a few stocks, which is true. Also that it is "overvalued" (whatever that means) because so many people are buying S&P 500 funds. Since we have never owned such a fund these are not things I've worried much about.
Give me a museum and I'll fill it. (Picasso) Give me a forum ...
Join Date: Nov 2010
Location: Vermont & Sarasota, FL
While my good friend OldShooter makes some good points and I also prefer Total Stock to 500 because it covers more of domestic US stocks, the reality is that the returns are similar enough that in the long-run it doesn't matter very much. The accumulated value from Jan 1993 to March 2020 was only 2% different... with 500 outperforming Total Stock by 0.08% annually.
If something cannot endure laughter.... it cannot endure.
Patience is the art of concealing your impatience.
Slow and steady wins the race.
Retired Jan 2012 at age 56...target 65/35/0 AA TBD
This community was started in 2002 as an alternative to a then fee only Motley Fool. The focus of the discussions is on topics related to early retirement and financial independence. The community is moderated to ensure a pleasant experience for our members.