I've been a big fan of the Boglehead way of investing, I've been going back and forth on some allocation ideas and I thought what better way to get some other viewpoints than to ask some Bogleheads on the forum.
For the US Stock allocation of my portfolio should I stick with my current combination of VINIX/VIEIX or move it into shares of VTI?
VTI (Vanguard Total Stock Market Index Fund ETF) - ER 0.03%
VINIX (Vanguard Institutional Index Fund) - ER 0.035%
VIEIX (Vanguard Extended Market Index Fund Institutional) - ER 0.05%
Backstory: My employer just switched to a new 401k provider that allows me to allocate up to 95% of my contributions to a Schwab PCRA, a retirement brokerage account where I can invest in any ETF or Mutual Fund! I'm really excited about all these choices.
My current 401k didn't have the best selection of funds, so but I did have VINIX/VIEIX available so I've been investing in both funds for my US Stock allocation to simulate a total index fund.
I have been going back and forth if I should stick with this approach and move all my US Stock allocation into the PCRA and invest it in VTI or keep it in the 401k and maintain the current combo I have going.
Thoughts brewing in my head:
- Investing in VINIX/VIEIX is a bit more passive since I can invest my entire allocation with every paycheck vs. me having to wait til I have enough cash to buy entire shares of VTI
- It's only a few basis points difference but an entire allocation to VTI is cheaper than the current mutual fund combo
- The current VINIX/VIEIX combo isn't really the entire US Stock market like VTI is
- What about VTSAX? Do I just invest in that through my PCRA instead?
- It feels intimidating to make a drastic change to my allocation and move a lot of money around- but it's for the best right?