Total stock market

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>>1616853
>Vanguard

>>1616861
The question would hold for any type of total market index not at β = 1.00, fucc boi

>>1616861
Is there a problem with Vanguard?

>>1616853

No idea.

The ETF version has a beta of 1.03.

http://www.reuters.com/finance/stocks/financialHighlights?symbol=VTI

>>1616853
it would make more sense if it were at 1.5 ~ 2
for growth you need volatility. Unless you're a pensioner. In that case a shitty savings account with fees for management is your best bet.

either way, 1.5 ~2

>>1617254
ur a fuckin retard

>>1616853
because it is not 100% perfectly correlated, it simply aims to emulate performance as accurately as possible for a cheaply as possible.

>>1617279
just stick to your cryptoshits buddy.

>>1617306
The market grows at a set volatility level. An equity's beta being 1.00 would reflect exactly this set volatility level. Why would an index whose purpose is to emulate the returns and volatility of the overall stock market not have a beta coefficient of 1.00? I'll wait.

>>1617306
What is 'Beta'
Beta is a measure of the volatility, or systematic risk, of a security or a portfolio in comparison to the market as a whole.

He's not asking what stocks are the best to invest in.

>>1616877
He is giving a thumbs up, so no?

>>1617292
Seems reasonable.

>>1617254
>>1617306
You're a moron.

I have an unrelated followup question: How does Vanguard manages to stay a "silent observer" of the market during events like, say, board of directors elections ? Do they abstain to vote to not influence the performance of the company whatsoever ? Considering Vanguard's index funds increasing popularity, will they ever reach a point when staying the "silent observer" is not possible anymore?

>>1617395
>Seems reasonable
It's called tracking error. Every index has some deviation from the benchmark, as much as they seek to avoid it. However, its actually costly and inefficient to track a benchmark perfectly (especially a cap-weighted index like total market).

To put it bluntly, you'd be pretty pissed if your index tracked the benchmark perfectly but you ended up with a ton of STCG at year end because of the excessive trading.

>>1617407
Oh right... that makes sense