A Midcourse Adjustment

November 18, 2013

No argument, the ETF…” VTI” from Vanguard offers the widest exposure to the total USA stock market….over 3,000 holdings. Its plain vanilla, inexpensive to own, and offers great liquidity as the largest USA mutual fund..(.except, it isn’t a mutual fund,  its an ETF.)

However, ETF index funds offering different slices of the USA equities market become more attractive than 3,000 plus holdings as the trend climbs because a great many of the lower priced stocks contained in VTI have become pricey compared to the mega caps.  As you will see below, this has had an impact on VTI since September 30 as lower price stocks seem to be holding this ETF back relative to mega caps.

Since September 30…..appreciation

OEF                    Top 100 Big Caps             7.5%

MGC                   Vanguard 350                   7.2%

SPY                     S&P 500                             7.2%

VTI                    Total US Market                         6.6%

QQQ                   Nas Daq 100                       6.4%

IJR                      Small Cap 600                   5.6%

VB                        Vngd  1700 small cap       5.1%

VGK                     Vngd Europe                      4.1 %

VWO                    Vngd Emerging                  3.7%

VNQ                      Vngd REITS                       2.1%

Therefore,  I have decided to sell half my VTI position, taking profits, using the proceeds to purchase OEF, SPY and MGC.  The fate of my VTI position will determine the fate of my other positions.


Richard Maurice Gore

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