Large-Cap Index Funds and their P/E ratios
- S&P 500 index fund (VFINX) - 17.0
- Dividend Appreciation index fund (VDAIX) - 17.7
- FTSE Social index fund (VFTSX) - 18.5
- Growth index fund (VIGRX) - 21.2
- Large-Cap index fund (VLACX) - 17.3
- Total Stock Market index fund (VTSMX) - 17.9
- Value index fund (VIVAX) - 14.7
Mid/Small Cap Index Funds and their P/E ratios
- Extended Market index fund (VEXMX) - 23.2
- Mid-Cap index fund (VIMSX) - 19.5
- Small-Cap Growth index fund (VISGX) - 26.5
- Small-Cap index fund (NAESX) - 22.5
- Small-Cap Value index fund (VISVX) - 19.7
Sector Specific Index Funds and their P/E ratios
- REIT index fund (VGSIX) - 46.5%
Notes and Observations:
- The P/E ratio of REIT index fund is 46.5. During the NASDAQ 5000 days, we saw a number similar or greater than this P/E ratio. I don't need to tell you what happened to NASDAQ after year 2000.
- The Large-Cap indexes are cheaper than the small cap indexes today. The big runup in last few years in the small and mid cap indexes have extended the P/E ratios of these indexes in unwanted territory for me.
- Small cap value index's P/E (19.7) is higher than the entire total stock market index's P/E (17.9) today. Is there a value in small-value today? Relatively speaking, no.- The value index fund which tracks the MSCI US Prime Market index has the lowest P/E ratio among all these indexes.
Data Source: https://flagship.vanguard.com/VGApp/hnw/FundsIndexOnly?View=EA&Sc=0