Blend vs Value/Growth split (IRA, mutual funds, trading, fees)

[calicoolguy]

For my Roth IRA with fidelity...

IVV (Large Cap Blend)- $289

vs

IUSV (Large Cap Value) - $57
IUSG (Large Cap Growth) - $61

From my understanding, and very well could be way off, IVV seems to cover the spectrum with the S&P500. IUSV + IUSG roughly make up IVV. All the same Expense Ratio of .04% and are all commission free. Currently IVV YTD is 17.84% and both IUSV + IUSG average to be 17.82%.

If im going to spend the same amount total of money on either IVV or IUSV + IUSG... wouldnt it make more sense to go with the combo of IUSV over IUSG being total one complete share of the pair at this time costs $118 meaning the same amount of money spent will get me more shares?

[mathjak107]

all growth and compounding is on dollars invested not shares . it does not matter how many shares you have if the dollars are the same

[calicoolguy]

Well I was looking at it more that I want to put in money say every paycheck so 2 weeks and it’s much easier to come up with $118 vs $289... being as will have a few other funds in portfolio.

[DaveinMtAiry]

Wait, what?

[Teak]

Originally Posted by calicoolguy

Well I was looking at it more that I want to put in money say every paycheck so 2 weeks and it’s much easier to come up with $118 vs $289... being as will have a few other funds in portfolio.

It sounds like you are a bit confused, or maybe we are.

Mutual funds allow you to buy partial shares; thus, you invest a certain dollar amount each month and the fund company creates the equivalent number of shares based upon the current NAV price.

For example, here are the closing NAV prices from yesterday evening:

IVV $289.52

IUSV $56.49
IUSG $60.89

So, let's say you want to invest $200 a month in either IVV or IUSV and IUSG.

Portfolio A: Putting $200 into IVV now gets you 0.691 share, ignoring any fees for this example.

Portfolio B: Putting $100 into each of IUSV and IUSG gets you 1.770 and 1.642 shares, respectively.

At the end of the trade, your two portfolios have the same exact value, $200. Once trading begins again on Monday, the values will change of course.

Okay, now ask your question again using this example. That might help us understand what it is you want to know. Thanks.

[calicoolguy]

These are ETF's, not mutual funds, if that makes a difference in this instance. I was under the impression I would need the exact amount to make a purchase, such as needing the $289.52 to purchase or whatever the cost is at that time. You and Mathjak107 would be right... if I could just put in total of $200 then yes would be pretty much the same thing and really make no difference.

[COcheesehead]

There is so much wrong information/misunderstanding in this thread.
You have to buy at least one share of an ETF. The price of which is inconsequential.
IUSV is large value. IUSG is large cap growth. IVV follows the S&P 500.
You can wait until you can buy a single share of IVV or split it over the other two. In the end it won’t make much difference.
Or you can buy ITOT which is the entire market and trades around $66. Personally I would rather have exposure to mid caps and small caps as well, but that is up to you.

[calicoolguy]

I full on plan on both mid and small caps... but was curious about the blend / value split for large cap. Im just trying to maximize how much money I am able to get into the market whether it have been with one higher priced etf or similar smaller priced. Just easier to put money into something lower priced then something nearly 300. I know im complicating it which is very much unintentional.

[lottamoxie]

I like ITOT.