Morningstar Style Boxes: AND THE MAKE-UP OF THE MARKET • Robert Schramm • Milwaukee Bogleheads • March 3, 2015 Student Level Expertise Ages: 20’s and up
Aug 04, 2015
Morningstar Style Boxes: AND THE MAKE-UP OF THE MARKET
• Robert Schramm• Milwaukee Bogleheads• March 3, 2015
Student Level Expertise
Ages: 20’s and up
· Giant represents the largest 1 percent of U.S. companies.
· Large represents the next largest 4 percent of U.S. companies.
· Medium represents the next 15 percent of U.S. companies.
· Small represents the next 30 percent of U.S. companies.
· Micro represents the bottom 50 percent of U.S. companies.
Market Capitalization
S & P 500 Index
• Largest 50 Stocks60%• Largest 100 Stocks
70%• Largest 200 Stocks
88%• Largest 300 Stocks
95%• Other 200 Stocks
5%
% Market Value
US Equity Market Structure
Exchange Companies % Tot. Mkt Value
NYSE 1665 80%
American 375 >1%
Nasdaq 3015 19%
Bulletin Board 3500+ >1%
More Indexes• Russell 2000
o Smallest 2000 of 3000 Largest Companies
• Wilshire 5000o Value weighted of most active US stocks
• Wilshire 4500o All of the 5000 except those in the S&P 500
More Indexes• MSCI EAFE
o (Morgan Stanley Capital International Europe Australia and Far East Index)
o 20 countries excluding Canada and the US
• MSCI Emergingo 20 world emerging marketso (Argentina, Brazil, Chile, Colombia, Greece, India, Peru, Philippines,
Portugal, Sri Lanka, Taiwan, Thailand, Turkey, Venezuela)
Do you try to time the market?
• Investors would do well to learn from deer hunters and fishermen who know the importance of “being there” and using patient persistence – so they are there when the opportunity knocks.
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Charles EllisInvestment Policy
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Milwaukee Bogleheads®
• A DIY investment group, followers of John Bogle's Index investing strategies, the Milwaukee local chapter of Bogleheads.
• This presentation was made March 3, 2015 by Bob Schramm of our chapter.
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Disclaimer
• All examples are for illustration purposes only and are not investment recommendations.
• The views expressed in the presentation, are those of the presenter, commenters, guests and participants and may not reflect the views of the Bogleheads organization.
• Use your discretion in using examples presented here for your own investment purposes.