John C. Bogle on the S&P 500 vs. the Total Stock Market – CBS News

I recently wrote a column entitled The Case against S&P 500 Index Funds. In that column, I noted two flaws in this index fund and pointed to a better way, namely a Total US index fund.

I received a note in the mail this week from – wait for it – John C. Bogle, the person who brought both of these index funds to the investing public.

He also gave me permission to publish his note.

Hi Allan!Of course you are right about these two flaws in the S&P 500, and I agree with your conclusion about “a better way.”But we’re left to explain why, over history from 1928 on, the annual return in the S&P 500 has been 10.4 percent while the return on the Total Stock Market has been 10.2 percent see the Little Book of Common Sense Investing.Food for thought.Best,Jack

via John C. Bogle on the S&P 500 vs. the Total Stock Market – CBS News.