Quantcast
Channel: Bogleheads.org
Viewing all articles
Browse latest Browse all 5298

Investing - Theory, News & General • Article: "Why "VT and Chill" Is Probably the Best ETF Investing Strategy Out There"

$
0
0
I've had everything in VT since 2015, and since then have been searching for better alternatives. There just doesn't seem to be any!
VT is taking "total market" to the extreme. With over 9000 holdings, it has 3000 funds with a 1% weighting combined. And 6000 with a combined 5% . Why even bother holding them? The next TSLA could be in there and it wouldn't matter. You'd be holding so little of the stock, it can't do much for you. The last few thousand holdings are less than $7 per 1 million of VT held.
Probably because in the computer age, it's likely less effort and cost to include them than to attempt to exclude them, decide on cutoff points and inclusion criteria, etc.

I recall Bogle explaining how they had to do all the math at the end of the day by hand to calculate the daily NAV of his first index fund. I'm summarizing heavily and likely misremembering details, but they initially limited the number of holdings to the reasonable number of stocks prices his secretary could update in an evening.

Statistics: Posted by neurosphere — Mon Jul 29, 2024 12:52 pm — Replies 72 — Views 23648



Viewing all articles
Browse latest Browse all 5298

Trending Articles



<script src="https://jsc.adskeeper.com/r/s/rssing.com.1596347.js" async> </script>