More Diversified Fund for Stock Portion

Discussion of the Stock portion of the Permanent Portfolio

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dualstow
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Re: More Diversified Fund for Stock Portion

Post by dualstow » Mon Dec 06, 2021 9:53 am

Some more info on VTSAX (Vanguard Total Stock Market) for Maddy & Friends
Vanguard’s Total Stock Market Fund, at $1.3 trillion in assets, is a market unto itself—powered by an unassuming index called CRSP

While many investors may not be familiar with CRSP, the influence of the index and the Vanguard fund is felt minute to minute on Wall Street. Traders say they sometimes check the Vanguard fund’s ETF version, with the symbol VTI, to get a better idea of what is happening in the market overall, since it effectively covers more stocks than any of the three major indexes—the Dow Jones Industrial Average, S&P 500 index and Nasdaq Composite.

To be added to the CRSP index, a company must operate a for-profit U.S. business, have a stock-market value of at least $15 million, and at least 12.5% of its shares outstanding must trade publicly, among other criteria. CRSP adds and drops stocks every quarter, and reflects some big initial public offerings and secondary offerings in a matter of days.


Mr. Sauter asked Ted Snyder, then the dean of the University of Chicago business school, if CRSP could be cranked up from a research resource to a daily investible index, promising that Vanguard would advance the development expenses. Near the end of a five-year ramp-up, Vanguard announced the fund’s index would shift to CRSP in 2013.

Mr. Sauter says cost-cutting was a “very significant” reason Vanguard shifted to CRSP. Vanguard currently pays CRSP about $20 million annually to license its indexes. But he adds that CRSP’s long experience in stock-market research and its database made Vanguard confident that CRSP could provide a quality index.

Last year, CRSP and the Vanguard fund scored a win over its biggest U.S.-fund rival, S&P Dow Jones Indices, when Tesla Inc. TSLA -stock rocketed up more than 700%. Tesla wasn’t part of the S&P 500 for most of the year because S&P requires new additions to be profitable, while CRSP doesn’t.
https://www.wsj.com/articles/mutual-fun ... 1638390382
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mathjak107
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Re: More Diversified Fund for Stock Portion

Post by mathjak107 » Tue Dec 07, 2021 4:51 am

the fidelity expense free index funds actually use their own proxy indexes so they do have to pay the use fees for the standardized ones ….that is how they are no expense.

the issues one runs in to with stocks like tesla is that a total market fund was able to own tesla early on but the s&p first had to buy it at high price
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