Do I need this small position in Health Care fund

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Mr.BB
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Do I need this small position in Health Care fund

Post by Mr.BB » Sat Jun 17, 2017 3:14 pm

I have a small holding in my SEP, Vanguard Health Care Fund VGHCX about $6,000
I used to have a much larger holding in my T. Rowe Price Health care fund, but I sold it last year. I am trying to do a little streamlining to my accts.
Instead of keeping this small concentrated position, do you think I would be better off transferring it into one of my other SEP funds?
Dividend Growth (VDIGX) / Mid cap Value (VMVAX) / Small Cap Index (VSMAX)
"We are what we repeatedly do. Excellence, then, is not an act, but a habit."

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nedsaid
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Re: Do I need this small position in Health Care fund

Post by nedsaid » Sat Jun 17, 2017 3:23 pm

Historically, the Healthcare sector has performed very well. Hard to give advice based upon limited information but if this is a small holding in your portfolio, it might help performance a bit and probably won't hurt you. I am less enthusiastic about sector bets than I used to be for various reasons. Healthcare is not the slam dunk that it used to be as there is a lot of cost cutting pressure out there and profit margins are under pressure too. You are probably okay if it is a relatively small holding. Don't know enough about your portfolio to give more detailed advice.
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grabiner
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Re: Do I need this small position in Health Care fund

Post by grabiner » Sun Jun 18, 2017 2:34 pm

Holding a small position (less than 5% of your portfolio) in any one fund doesn't make much difference in your returns; simplifying by moving to another stock fund makes sense.

Which stock fund? This depends on your overall asset allocation plan, and not just in the SEP if you have other accounts. You should have a target allocation, and make your whole portfolio match that allocation.
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Mr.BB
Posts: 248
Joined: Sun May 08, 2016 10:10 am

Re: Do I need this small position in Health Care fund

Post by Mr.BB » Sun Jun 18, 2017 7:15 pm

grabiner wrote:Holding a small position (less than 5% of your portfolio) in any one fund doesn't make much difference in your returns; simplifying by moving to another stock fund makes sense.

Which stock fund? This depends on your overall asset allocation plan, and not just in the SEP if you have other accounts. You should have a target allocation, and make your whole portfolio match that allocation.


I agree...I'm exchanging it into my dividend growth fund and mid cap fund and a little to my small cap fund. Certainly not enough to make any of my Morningstar style boxes change; just simplifying things up.
"We are what we repeatedly do. Excellence, then, is not an act, but a habit."

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