Switching Assets From IWM To VTI - Moving Up The Market-Cap Ladder

Retired InvestorInvesting GroupFollow5ShareSavePlay(10min)CommentsSummaryI am reallocating from iShares Russell 2000 ETF to Vanguard Total Stock Market Index Fund ETF due to underperformance of small-caps.Overweighting IWM based on mean-reversion and small-cap historical returns was costly, as large-caps have outperformed since 2000.VTI offers broader market exposure, including large-, mid-, small-, and micro-cap stocks, aligning better with my core ETF strategy.Periodic asset allocation reviews are crucial; neglecting this led to missed performance, as VTI would have grown my equity allocation by 50% over the past decade.Looking for more investing ideas like this one? Get them exclusively at iREIT®+HOYA Capital. Learn More » matdesign24/iStock via Getty Images Introduction Based on a feeling that large-cap ETFs like the SPDR® S&P 500® ETF (SPY) were too concentrated in their top holdings and looking at the following data that showed Small-cap stocks had betterThis article was written byRetired Investor9.25K FollowersFollowRetired Investor has been investing since the 1980s and has a background in data analysis and pension fund management. He writes articles to help others prepare for retirement by investing in CEFs, ETFs, BDCs, and REITs. He is a long only investor and shares strategies for trading options with a focus on cash-secured-puts. He is a contributing author to the investing group iREIT®+HOYA CapitalThe group helps investors achieve dependable monthly income, portfolio diversification, and inflation hedging. It provides investment research on REITs, ETFs, closed-end funds, preferreds, and dividend champions across asset classes. It offers income-focused portfolios targeting dividend yields up to 10%.Learn more.Analyst’s Disclosure: I/we have a beneficial long position in the shares of IWM, VTI either through stock ownership, options, or other derivatives. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article. I also write Puts and Calls against both tickersSeeking Alpha's Disclosure: Past performance is no guarantee of future results. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. Any views or opinions expressed above may not reflect those of Seeking Alpha as a whole. Seeking Alpha is not a licensed securities dealer, broker or US investment adviser or investment bank. Our analysts are third party authors that include both professional investors and individual investors who may not be licensed or certified by any institute or regulatory body.