For all the "Just buy an S&P 500 index fund" folks. Even Vanguard thinks that's inadequate for a retirement plan.
"We believe the Total Stock Market Index Fund is the best proxy for the U.S. market, offering exposure to large-, mid-, and small-cap stocks, whereas Vanguard Institutional Index Fund concentrates on large-cap stocks" said a Vanguard spokesperson.
Anyone working at Vanguard who does hold VINIX and doesn't exchange out of it will be moved to a target-date fund instead. I'm assuming an age-appropriate one.
Note that in exercising that fiduciary responsibility of putting "non-deciders" into a target fund, Vanguard is implicitly saying that retirement portfolios need small cap stocks, fixed income, and non-US exposure.
Submitted June 06, 2018 at 05:35PM by ChekovsWorm https://ift.tt/2sN88bw
