You would also want to add a small cap fund to your portfolio if you desire to "tilt" your portfolio asset allocation towards higher small cap and/or value weightings than those provided by market cap weighting.Ĭurrently, the Vanguard Total International index fund is the only Vanguard international index fund allocating market weights to international small cap stocks. (See Approximating total stock market for guidance). However, if your employer provided retirement plan provides you with an S&P 500 index fund and no other low cost options you may wish to add a small cap fund in your taxable account or personal retirement plan in order to mirror the market.
If you desire to hold small cap allocations at market capitalization weightings you can hold a US Total Market Index fund and meet your allocation desires without adding a small cap fund. Total stock market and Total International index funds contain the market weight in small caps, the FTSE Index, holding large and mid cap stocks, does not.Īre small cap funds necessary in my portfolio? International small cap would also require about 10% to complete the FTSE All World ex. What percentage of the total stock market do small caps represent?Ībout 10% small caps would equal the weighting of the total stock market. International Explorer (active international small growth) VINEXįTSE All World ex. Strategic Small-Cap Equity (active small blend) VSTCXĮxplorer Value (active small value) VEVFX Vanguard currently provides seventeen non-institutional small cap funds:
1.3 Are small cap funds necessary in my portfolio?.1.2 What percentage of the total stock market do small caps represent?.1.1 How many small cap funds does Vanguard provide?.
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