In aggregate, since 1926 when the S&P large cap index was founded, it has outperformed the broader market. Obviously as the economy has evolved over the last near 100 years, there have been periods where smaller caps have done well. But IMO the S&P 500 is unlikely to get crushed by small caps, even if there are periods where it might lag. And small caps are inherently riskier. If you want small cap exposure, I'd go with a total US mkt index fund. VTI is a good choice. If you really want radical diversification you could go with VT.
Folks, unlike most M* segments, this one was extremely confusing. What I heard was: It wasn’t that small caps have done poorly…but the way YOU guys define small caps, investing in old legacy industries, has done poorly…but, there ARE no small caps in tech (HUH??)….therefore, since there are only Big Caps in tech (??) that’s why they’ve done well…..Leaves me totally cold. Maybe my first M* Thumbs Down. - Dave Huntsman
In aggregate, since 1926 when the S&P large cap index was founded, it has outperformed the broader market. Obviously as the economy has evolved over the last near 100 years, there have been periods where smaller caps have done well. But IMO the S&P 500 is unlikely to get crushed by small caps, even if there are periods where it might lag. And small caps are inherently riskier. If you want small cap exposure, I'd go with a total US mkt index fund. VTI is a good choice. If you really want radical diversification you could go with VT.
Folks, unlike most M* segments, this one was extremely confusing. What I heard was: It wasn’t that small caps have done poorly…but the way YOU guys define small caps, investing in old legacy industries, has done poorly…but, there ARE no small caps in tech (HUH??)….therefore, since there are only Big Caps in tech (??) that’s why they’ve done well…..Leaves me totally cold. Maybe my first M* Thumbs Down. - Dave Huntsman