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Helping a friend. She has only two decent large-cap funds in her 401k. I realize one is large-cap growth and other is large-cap value. PRWAX has larger turnover. I was a little surprised by a little more drawdown for VWNFX, it being a value fund, from beginning of 2007 through the bottom in 2008.
@Kaspa: When John Bogle went to Jim Barrow back in 1985 it was the beginning of a great fund. However, in 2003 Vanguard started bring in one fund manager after another spoiling the broth, plus asset blot. I'd take a pass on VWNFX, and in my opinion PRWAX is run-of-the-mill. What other funds are available in her 410 (k) ? Regards, Ted
IMHO, LC is the area where indexing makes the most sense. Unless you are looking for a manager that has a mandate to preserve capital first, hedge with cash when stocks look pricey and that is the strategy you want (ala funds like YAFFX, PRBLX or SEEDX to name a few) the S&P500 index will out perform most LC funds over time.
IMHO, LC is the area where indexing makes the most sense. Unless you are looking for a manager that has a mandate to preserve capital first, hedge with cash when stocks look pricey and that is the strategy you want (ala funds like YAFFX, PRBLX or SEEDX to name a few) the S&P500 index will out perform most LC funds over time.
I am familiar with many of these funds as my 403 offers some, and I am also invested in my own IRA accounts.
The current holdings break-down looks like this, and I think she picked all the good active funds. Although PRWAX may bear watching as a new manager took over in 2013.
PRWAX: domestic large growth ABMIX: domestic mid blend OTCFX: domestic small growth DODFX: foreign large blend PTTRX: intermediate term bond
60% : US, 22%: foreign, 18%: bond
A few interesting notes:
VINIX is just the Vanguard institutional version (low cost) of S&P 500 Index. ABMIX is closed to new investor. I have the investor version (CHTTX). OTCFX is closed to new investor. RERGX is foreign large growth with .49% expense. Both DODFX and RERGX are fine choices for foreign exposure.
Comments
Regards,
Ted
IMHO, LC is the area where indexing makes the most sense. Unless you are looking for a manager that has a mandate to preserve capital first, hedge with cash when stocks look pricey and that is the strategy you want (ala funds like YAFFX, PRBLX or SEEDX to name a few) the S&P500 index will out perform most LC funds over time.
Regards,
Ted
Not a typo. 4 basis points.
Below is the performance, and the performance of its category, large cap blend:
Sorry, I did not notice the index fund
BobC: With the availability of index fund, would you still prefer Price New America?
Ted: Regarding other funds, there are these three LC funds (PRWAX,VINIX,VWNAX).
There are three in small/midcap space (ABMIX, CAMZX, OTCFX),
two international (RERGX, DODFX), three bond funds (PTTRX, VFIUX, VBIRX).
She is in her late fortys and currently invested in
PRWAX (18%), ABMIX(27%), OTCFX(15%), DODFX(22%), PTTRX(18%).
The current holdings break-down looks like this, and I think she picked all the good active funds. Although PRWAX may bear watching as a new manager took over in 2013.
PRWAX: domestic large growth
ABMIX: domestic mid blend
OTCFX: domestic small growth
DODFX: foreign large blend
PTTRX: intermediate term bond
60% : US, 22%: foreign, 18%: bond
A few interesting notes:
VINIX is just the Vanguard institutional version (low cost) of S&P 500 Index.
ABMIX is closed to new investor. I have the investor version (CHTTX).
OTCFX is closed to new investor.
RERGX is foreign large growth with .49% expense. Both DODFX and RERGX are fine choices for foreign exposure.
I am not familiar with the others.
I hope she's comfortable with 82% stock and 18% bond levels:
https://personal.vanguard.com/us/insights/saving-investing/model-portfolio-allocations
Hope this helps.