When you all do your breakdowns of asset allocation, do you do it based on the fund, or do you break down its funds individual components?
For example: If I use Morningstar's data, I can see that Vanguards total Market Fund is 71% large, 20% mid cap, 9% small cap.
So say I want my asset allocation amongst US stocks to be 50/20/30 large/mid/small cap:
Do I count the 9% from my total market fund as my small cap portion, and then add some funds that are more heavily small cap weighted to meet my 30% small cap goal? Or should I not split the data so much and focus more on the fund categories themselves?
Another example is that REITs comprise 3-4% of the total market fund. So say I only want say 5% of my total portfolio in REITs, can I just lightly tilt by investing an extra 1% a REIT fund? Or should it be a separate 5% portfolio investment in REITs?
For example: If I use Morningstar's data, I can see that Vanguards total Market Fund is 71% large, 20% mid cap, 9% small cap.
So say I want my asset allocation amongst US stocks to be 50/20/30 large/mid/small cap:
Do I count the 9% from my total market fund as my small cap portion, and then add some funds that are more heavily small cap weighted to meet my 30% small cap goal? Or should I not split the data so much and focus more on the fund categories themselves?
Another example is that REITs comprise 3-4% of the total market fund. So say I only want say 5% of my total portfolio in REITs, can I just lightly tilt by investing an extra 1% a REIT fund? Or should it be a separate 5% portfolio investment in REITs?
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