I am looking for any advice on selecting a bond fund in my 401k. I have a "total bond fund" that tracks the Barclay's Index and has been passively managed for the past 3 years. It has an expense ratio of .06% which is great, but I do note that the fund slightly underperforms the Index. The fund is managed (passively) by Neuberger Berman.
I did a search on the boglehead site and could find no reference to the bond fund ("Neuberger Berman" "total bond" site:bogleheads.org), which is somewhat surprising considering that I work for a large company and I assumed there were some bogleheads that worked for the same big company. On the other hand, it does not look like NB offers this fund on it's own website to the general public.
Anyway, if it was simply a matter of noticing that the fund tracks an index and has a low exp ratio, I'd just pick that one for my bond holding and be done with it. Any input or thoughts?
There are no Vanguard TBM options in my 401k, however, I could pick a Vanguard TIPS fund (institutional, .05-.07 ER), or an intermediate investment grade Vanguard index (inst, .05-.07 ER) fund plus some other short term or long-term vanguard indexes.
I have a separate account of money that is akin to a 3 mo T-Bill rate whose rate resets 1x year. It's currently sub-inflation. I can't move or adjust that fund for now, so I'd like to augment it with another fund.
I was thinking of the following options:
a.ignore the 3mo TBIll influence since I can't affect it, and just split the remaining FI portion of the port 50/50 between the NB TBM and Vanguard TIPS
b. ignore the 3mo TBIll influence since I can't affect it, and just split the remaining FI portion of the port 50/50 between the Vanguard intermediate investment grade vanguard index fund and Vanguard TIPS
Any observations? Thank you.