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Open Question(s) for the Board on Small Caps

How many years from retirement are you, and what proportion of your total portfolio do you allocate to small caps?

Further, what proportion of your international sleeve do you allocate to small caps?

Cheers.

D.S.

Comments

  • 30+ and I've decided to target about 15% as where my non-em small cap allocation lies (+/- 3% depending on relative valuation and drift) global fund so the international allocation is determined by others.
  • Hey, D.S.

    Years from retirement? What a thought. I'm not sure how one decides when to retire or quite what retirement would look like (if I publish MFO but don't teach full-time, am I retired?). Maybe 10 - 20 years, health, sanity and family permitting.

    My asset allocation is 70/30. Within the 70, stocks are about 2:1 domestic over foreign. In both domestic and international, about 40% is small to midcap. On principle I'd have more "pure" small cap exposure but it's tough when your retirement providers are TIAA-CREF, Fidelity and Price.

    David
  • In the early years of retirement, I use funds that can go all over the capitalization spectrum, so I leave the percentages to the managers. FWIW, I'm now around 15% in smallcap and about 30% in midcap by M*'s definitions.
  • edited June 2014

    How many years from retirement are you, and what proportion of your total portfolio do you allocate to small caps?

    Further, what proportion of your international sleeve do you allocate to small caps?

    Cheers.

    D.S.

    I'm retired, early. Wife still works, age 41. At present, we are down to 3.21% of total in small caps, but I could go as high as 8% and feel ok about it. Last year, I let my small-cap fund MSCFX fly, and took goodly profits to transfer into one of my core holdings. When they're hot, they're hot. This year, NAESX has been added: Low expenses, good record. It was the best of the not-wonderful 403b menu selections--- at least to my mind--- and given the make-up of everything else we're holding.

  • edited June 2014
    Retired for a year or so, we have had maybe 5-7% in small caps. I recently decided to sell my favorite nominal SC fund GABSX because FLPSX dupes its behavior so closely and is full of SC holdings. I may switch to a position in WEMMX in addition, to satisfy my itch for true SC holdings and also to continue with greedy Gabelli's solid research and results.
  • Retired early. I have close to 10% in small caps.
  • edited June 2014
    Retired ... According to M*'s Instant Xray analysis my current allocation to small caps equals about 6% and to mid caps about 18%. This is towards the historical low range for me as I have been as high combine (both small and mid caps) in the 35% range. The current allocation is due in part that some of my flexible portfolio funds now seem to have reduced their allocation to the smids and raised their allocation to large caps. With this, I have been thinking of adding to my small/mid cap positions. My equity allocation bubbles at about 65% domestic and 35% foreign. Overall equities account for about 50% of my portfolio, alternativies about 10%, income about 25%, and cash about 15%.

    Old_Skeet
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