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An excellent article. Interesting though, in that while some financial advisors insist that no one should have more than a small number of funds, the M* 401k has quite a few.
Of course that may be a different animal because of the size of the M* 401k.
Ya, unless you're already an Orange Criminal Felon Fart-faced Billionaire via crypto, no one needs 30+ funds. You'd be running your own monstrosity of a Fund, rather than a personal portfolio.
"Interesting though, in that while some financial advisors insist that no one should have more than a small number of funds, the M* 401k has quite a few."
Morningstar's 401(k) lineup includes Vanguard's entire Target Retirement suite. Mr. Kinnel mentioned that the following funds are also available: American Funds Washington Mutual Dodge & Cox International Stock Harbor Capital Appreciation Oakmark Select Vanguard Developed Markets Index Vanguard FTSE Social Index Vanguard Institutional Index Vanguard International Growth DFA International Small Company Primecap Odyssey Aggressive Growth Royce Small-Cap Special Equity Vanguard Selected Value Vanguard Small-Cap Index Wasatch Small Cap Growth American Funds New World Vanguard Emerging Markets Stock Index Invesco Developing Markets Vanguard Short-Term Inflation-Protected Securities Index Pimco Commodity Real Return Strategy Vanguard Real Estate Index Dodge & Cox Global Bond Pimco Total Return T. Rowe Price High Yield Loomis Sayles Bond Vanguard Total Bond Market Index
It does seem that some funds could be removed to streamline the lineup without adverse affects. Here are a few quick examples off the top of my head. Remove either Vanguard FTSE Social Index or Vanguard Institutional Index since both funds are similar. American Funds New World is not a pure-play EM fund — some of its developed market holdings will also be found in the three large-cap international funds available. Remove it. REITs have provided scant diversification for U.S. equities since the turn of the century. Vanguard Real Estate Index is therefore of limited use and can be removed.
Comments
Of course that may be a different animal because of the size of the M* 401k.
should have more than a small number of funds, the M* 401k has quite a few."
Morningstar's 401(k) lineup includes Vanguard's entire Target Retirement suite.
Mr. Kinnel mentioned that the following funds are also available:
American Funds Washington Mutual
Dodge & Cox International Stock
Harbor Capital Appreciation
Oakmark Select
Vanguard Developed Markets Index
Vanguard FTSE Social Index
Vanguard Institutional Index
Vanguard International Growth
DFA International Small Company
Primecap Odyssey Aggressive Growth
Royce Small-Cap Special Equity
Vanguard Selected Value
Vanguard Small-Cap Index
Wasatch Small Cap Growth
American Funds New World
Vanguard Emerging Markets Stock Index
Invesco Developing Markets
Vanguard Short-Term Inflation-Protected Securities Index
Pimco Commodity Real Return Strategy
Vanguard Real Estate Index
Dodge & Cox Global Bond
Pimco Total Return
T. Rowe Price High Yield
Loomis Sayles Bond
Vanguard Total Bond Market Index
It does seem that some funds could be removed to streamline the lineup without adverse affects.
Here are a few quick examples off the top of my head.
Remove either Vanguard FTSE Social Index or Vanguard Institutional Index since both funds are similar.
American Funds New World is not a pure-play EM fund — some of its developed market holdings
will also be found in the three large-cap international funds available. Remove it.
REITs have provided scant diversification for U.S. equities since the turn of the century.
Vanguard Real Estate Index is therefore of limited use and can be removed.