My question is: Which would be preferable to act as a bond allocation for 10-15% of my 401(k)? I’m at least 35 years from retirement, so I’m just putting 100% into equities currently.
My current allocation (for contributions) is:
40% SSgA S&P500 Index fund | 0.01%
30% SSgA Russell Small/Mid Cap Index Fund | 0.02% (tracks Russell Small Cap Completeness Index)
30% SSgA Global All Cap Eq. ex-US Index Fund | 0.05% (tracks MSCI ACWI ex-USA IMI Index)
My options for bond/fixed income are:
SSgA Bond Index Fund | 0.03% (Tracks Barclays Capital US Aggregate Bond Index)
PIMCO Inflation Response Multi-Asset Instl (PIRMX) | 1.04% gross
Core Plus Fixed Income | 0.32%
The last one ("Core Plus") is described as follows: “The Fund seeks to provide income and capital appreciation. The Fund invests primarily in domestic, investment grade, corporate, mortgage-backed and asset-backed bonds. The fund also invests in below investment grade bonds and bonds of international and emerging market countries.” Its turnover is 0.30% and its asset classification is Intermediate-Term Bond.
And it’s allocations:
77.28% US Bond
40.12% Non-US Bond
The Barclays Index would be my natural choice given its low expense ratio and well-known index, but the other two look interesting. The PIMCO one holds a bunch of REITs, so I’d assume that counts as more of an equity than fixed income. However I have heard good things about PIMCO and their bond fund experience. I’m not very clear on what “Core Plus” is (the negative -21.07 cash has me scratching my head). It doesn’t have a ticker and SSgA (State Street Global Advisors) doesn’t list it on their website.
Any advice or insight is appreciated.
[size=85]The problem with closed-mindedness is it that it's rarely accompanied by a closed mouth[/size]