Intro & S-fund

This topic contains 1 reply, has 2 voices, and was last updated by  DanDan 5 years, 3 months ago.

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  • #12179

    KeithG
    Participant

    First of all, I want to thank you for creating this website and sharing your thoughts on investing. I consider myself a value and fundamentals style investor and I’ve applied what I’ve learned over the years to my investing with some success. That said, there are things that happen over long stretches in the market that don’t fit within a fundamentals explanation of the market. Now that I’ve read your material here and Lars Tevede’s book I have a better understanding of how the market has worked and how to apply that to future investment decisions. Once again thank you.

    I’ve noticed that you have compared the S-fund to the Russell 2000, which I believe is incorrect. The S-fund is set up to mimic the Wilshire 4500 (or Dow Jones Completion Index) which is the total US market minus the S&P 500, which is not the Russell 2000. The S-fund (small stocks fund) is something of a misnomer, because it’s really a Mid-Cap fund vs a Small Cap fund.

    I hope to spend more time here and share more thoughts and questions in the future.

    Keith

    #12180

    DanDan
    Participant

    Post titled S fund tracking on January 10, 2014

    “The Wilshire 4500 (^W4500) is the index you should track if you are keeping a ticker screen as that is the closest index out there. You can really use any of the small cap indexes to get an approximation – the Russell 2000 (^RUT) is frequently referred to in reporting as indicative of small cap performance and it will track very closely to the W4500 because they are both cap weighted and so most of their holdings wind up being the same.
    I have a page listing mutual fund and ETF equivalents for the various TSP funds here: http://www.tspallocation.com/mutual-fund-etf-equivalents-tsp-funds/

    S Fund Tracking

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