Questions re: Equity Fund Selection

[craigr]

I'd take the Vanguard fund and not look back.

[KevinW]

I'd take the Vanguard fund and not look back.

+1

[KevinW]

I have no qualms about the Vanguard S&P Index, in fact, that will make up at least 70% of the equity portion of the PP. I was simply wondering if diversifying (approx. 30%) with any of the other funds would be prudent.

Probably wouldn't be prudent. Have you read the stock FAQ?

[craigr]

I have no qualms about the Vanguard S&P Index, in fact, that will make up at least 70% of the equity portion of the PP. I was simply wondering if diversifying (approx. 30%) with any of the other funds would be prudent.

Probably wouldn't be prudent. Have you read the stock FAQ?

Yes I have - it's a great FAQ.

I've decided not to include them due to their expense ratios (about 0.81%) which are too high for me anyway. Thanks for the responses.

That's the rub really. Even if they were great stock pickers, the high fee is a horrible headwind to beat each year. Every fraction of a percent you save in expense ratio is money in your pocket.

I'd be more easily convinced if you were looking to mix in a small cap index fund with low fees and can stick with the tracking error.

[AdamA]

So I'm wondering whether or not it is prudent to partially slice-and-dice the equity portion by including the small-cap and mid-cap funds as well as the S&P Index.

Nah.  You really don't need to.