http://www.thesimpledollar.com/2007/03/14/the-bogleheads-guide-to-investing-chapters-9-16/ Simple, applicable personal finance advice for the modern world Sat, 21 Nov 2009 23:44:30 -0800 http://wordpress.org/?v=2.8.4 hourly 1 http://www.thesimpledollar.com/2007/03/14/the-bogleheads-guide-to-investing-chapters-9-16/comment-page-1/#comment-10730 Shadox Thu, 15 Mar 2007 06:38:09 +0000 http://www.thesimpledollar.com/2007/03/14/the-bogleheads-guide-to-investing-chapters-9-16/#comment-10730 Very good post, however, an S&P 500 index is not sufficiently diversified. By definition it only invests in large cap stocks, and only in U.S. stocks at that. The Total Market Index Fund, which attempts to match the Wilshire 5000 is far more diversified, but it still heavily skewed towards large cap stocks. It is probably a good idea to invest in a small cap index (such as the Russell 2000) to off-set this large cap bias. Very good post, however, an S&P 500 index is not sufficiently diversified. By definition it only invests in large cap stocks, and only in U.S. stocks at that. The Total Market Index Fund, which attempts to match the Wilshire 5000 is far more diversified, but it still heavily skewed towards large cap stocks. It is probably a good idea to invest in a small cap index (such as the Russell 2000) to off-set this large cap bias.

]]>