The comparison on the wiki ignores returns, because it is random whether the Russell 2000 or S&P 600 (which hold the same market segment) will outperform. It compares expenses and taxes, as expenses are a known factor, and past tax costs are a good approximation of future tax costs. And unless you pay more than 23.8% tax on qualified dividends, the expenses and tax costs of Total Stock Market are lower.That would have been during a period when VTCLX was managed with a mild growth tilt (and value overperformed).Total Stock Market similarly comes out ahead in a comparison with 90% TM Capital Appreciation and 10% TM Small-Cap.
I have a hard time being concerned with replacing the R2000 with the S&P Smallcap 600 in a market portfolio, which is what holding VTCLX and VTMSX primarily does today if held at relative market weight.
Statistics: Posted by grabiner — Sun Feb 02, 2025 7:52 pm