If I were to hazard a guess, most readers of ITA Wealth Management are not aware that VTI made a switch its underlying index benchmarks from MSCI to the CRSP indices (for US exposure) and FTSE indices (for international). While this is of some concern, it will not significantly impact our portfolios as we do not invest only in the VTI index. While the VTI will lose some exposure to mid- and small-cap cap stocks, we pick up those asset classes by over-weighting our asset allocation plans to smaller cap stocks. In addition, we skew our portfolios to the value side of the investing spectrum based on research that tells us – over the long run, value stocks outperform growth stocks.
The move by Vanguard’s VTI ETF is not trivial, but we do not need to be concerned due to the way we build our portfolios. Nevertheless, one wants to keep abreast of these changes and that is why I bring it to your attention. Click on the provided link for more details.