401k investment choices

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semperlux
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401k investment choices

Post by semperlux » Mon May 21, 2018 4:21 am

Normally a Vanguard only investor, but limited number of Vanguard funds available in 401K.

Looking to see if people use any of these funds or have any thoughts about them (eg "stay away from this one," or "must have") since I haven't heard of many of them. Looking to invest in Large blend, Medium blend, Small blend, International large blend, International small blend. Currently have funds in Vanguard total stock (VTSAX), Vanguard Mid cap index (VIMAX), Vanguard Small cap index (VSMAX), Vanguard total international (VTIAX), and Vanguard FTSE All World ex-US small cap index (VFSVX). Looking for similar funds to invest in.


401K offers:

Large Blend
BTC US Equity Market Index Fund (USEQF), ER 0.08

Large Growth
Janus Forty Concent rated Growth Fund (190J), ER 0.55
Vanguard Capital Opportunity Admiral (VHCAX), ER 0.37

Mid Cap Blend
DFA US Core Equity 2 (DFQTX), ER 0.22

Mid Cap Value
Boston Partners Small Mid Cap Value Fund (180J), ER 0.71

Small Value
Cambiar Small Cap Value, ER 1.04

International Large Blend
Dodge & Cox International Stock (DODFX), ER 0.64

International Small / Mid Value
Fidelity International Small Cap (191J), ER 0.99

World Large Stock
American Funds Capital World Gr&Inc R6 (RWIGX), ER 0.45

Balanced
Vanguard Wellington Admiral (VWENX), ER 0.16

student
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Re: 401k investment choices

Post by student » Mon May 21, 2018 6:02 am

I would pick

Large Blend
BTC US Equity Market Index Fund (USEQF), ER 0.08 (because it is an index fund with low ER)

and

International Large Blend
Dodge & Cox International Stock (DODFX), ER 0.64 (good reputation and relatively low ER for an active fund as the list does not have an index fund)

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dwickenh
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Re: 401k investment choices

Post by dwickenh » Mon May 21, 2018 6:34 am

student wrote:
Mon May 21, 2018 6:02 am
I would pick

Large Blend
BTC US Equity Market Index Fund (USEQF), ER 0.08 (because it is an index fund with low ER)

and

International Large Blend
Dodge & Cox International Stock (DODFX), ER 0.64 (good reputation and relatively low ER for an active fund as the list does not have an index fund)
I agree with student's choices but you may want to throw in DFA US Core Equity 2 (DFQTX), ER 0.22 if you want a tilt to mid and smaller stocks.
The market is the most efficient mechanism anywhere in the world for transferring wealth from impatient people to patient people.” | — Warren Buffett

mega317
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Re: 401k investment choices

Post by mega317 » Mon May 21, 2018 6:44 am

If you have other accounts to hold the other pieces of your portfolio then you might only need one fund. Go with the cheap one. No need to mirror all holdings in all accounts.

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semperlux
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Re: 401k investment choices

Post by semperlux » Fri May 25, 2018 1:48 pm

Thanks for the suggestions.

So BlackRock's large blend tracks pretty similarly to Vanguard's Total Stock Market index? I also like that it has a low ER.

I've heard pretty good things about Dodge & Cox as well, but it's ER of 0.64 is a bit more than Vanguard's Total International Index Admiral of 0.11, and it's an active fund.

Is the DFA US Core Equity 2 a mid cap value tilted fund? Or just a mid cap index fund? Active?

I don't necessarily have to mirror my 401K to my Vanguard accounts, all of my large blend domestic and large blend international are in taxable accounts. However over the years my small cap domestic and small cap internationals have pushed out my mid caps into taxable as well. So I mainly need more room in tax advantaged accounts for my domestic small and international small, and my 401K choices are pretty poor for those.

Is Fidelity International Small an active or passive fund? The ER of 0.99 is a bit more than Vanguard's FTSE All-World ex-US Small Index of 0.25.

pingo
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Re: 401k investment choices

Post by pingo » Fri May 25, 2018 6:25 pm

semperlux wrote:
Fri May 25, 2018 1:48 pm
So BlackRock's large blend tracks pretty similarly to Vanguard's Total Stock Market index? I also like that it has a low ER.
There will be no difference between them.
semperlux wrote:
Fri May 25, 2018 1:48 pm
Is the DFA US Core Equity 2 a mid cap value tilted fund? Or just a mid cap index fund? Active?
For what it's worth, I think your 401k mis-categorizes DFQTX. It's a US total-ish market fund which leans slightly to value and small by, well, leaning slightly to value and holding 37% in Mid/Small Caps versus 24% Mid/Small in a total market index fund. The rest are Large Caps. You can see what non-difference it has made by clicking the clickable (linked) chart below of the longest period I could get for the comparison, and from which I can see higher volatility in DFQTX with nothing to show for it:

Image
semperlux wrote:
Fri May 25, 2018 1:48 pm
I've heard pretty good things about Dodge & Cox as well, but it's ER of 0.64 is a bit more than Vanguard's Total International Index Admiral of 0.11, and it's an active fund.
If it makes it easier to mirror your 401k to other accounts, I'd do it. Dodge and Cox is a worthy alternative to VG Total Int'l. Allocation of assets across accounts is fine, too.
semperlux wrote:
Fri May 25, 2018 1:48 pm
I don't necessarily have to mirror my 401K to my Vanguard accounts, all of my large blend domestic and large blend international are in taxable accounts. However over the years my small cap domestic and small cap internationals have pushed out my mid caps into taxable as well. So I mainly need more room in tax advantaged accounts for my domestic small and international small, and my 401K choices are pretty poor for those.
semperlux wrote:
Fri May 25, 2018 1:48 pm
Is Fidelity International Small an active or passive fund? The ER of 0.99 is a bit more than Vanguard's FTSE All-World ex-US Small Index of 0.25.
It's hard to buck the Costs Matter Hypothesis, but I'm not convinced of the efficiency of the Intl Small Cap space to make Vanguard's Intl Small Cap option much more worthy. For what it's worth, I charted the longest period I could of VG's index and active Intl Small cap funds, along with a 1.28% ER version of your Fidelity International Small Cap Fund and the Schwab ETF I use:

Image
Last edited by pingo on Sat May 26, 2018 10:04 am, edited 1 time in total.

Papajoe56
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Re: 401k investment choices

Post by Papajoe56 » Sat May 26, 2018 7:11 am

mega317 wrote:
Mon May 21, 2018 6:44 am
If you have other accounts to hold the other pieces of your portfolio then you might only need one fund. Go with the cheap one. No need to mirror all holdings in all accounts.
Geat advice. Lower the 401-K fees as much as possible. Write down, or create spreadsheet forall of your investments and categorize them to see what investment allocation percentages are.If you do 100% Large Cap in 401-K,adjust other hoildings to arrive at desired allocations in overall portfolio.

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semperlux
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Re: 401k investment choices

Post by semperlux » Mon May 28, 2018 11:01 am

pingo wrote:
Fri May 25, 2018 6:25 pm
semperlux wrote:
Fri May 25, 2018 1:48 pm
So BlackRock's large blend tracks pretty similarly to Vanguard's Total Stock Market index? I also like that it has a low ER.
There will be no difference between them.
Awesome, good to know.
pingo wrote:
Fri May 25, 2018 6:25 pm
semperlux wrote:
Fri May 25, 2018 1:48 pm
Is the DFA US Core Equity 2 a mid cap value tilted fund? Or just a mid cap index fund? Active?
For what it's worth, I think your 401k mis-categorizes DFQTX. It's a US total-ish market fund which leans slightly to value and small by, well, leaning slightly to value and holding 37% in Mid/Small Caps versus 24% Mid/Small in a total market index fund. The rest are Large Caps. You can see what non-difference it has made by clicking the clickable (linked) chart below of the longest period I could get for the comparison, and from which I can see higher volatility in DFQTX with nothing to show for it:
You're right, I just checked out the MorningStar Xray box for Vanguard's Mid Cap Index Admiral and DFQTX looks nothing like it, much closer to a Large Cap blend with a tilt like you say. That's unfortunate, was hoping I could use it as a substitute for my Mid cap allocation.
pingo wrote:
Fri May 25, 2018 6:25 pm
semperlux wrote:
Fri May 25, 2018 1:48 pm
I've heard pretty good things about Dodge & Cox as well, but it's ER of 0.64 is a bit more than Vanguard's Total International Index Admiral of 0.11, and it's an active fund.
If it makes it easier to mirror your 401k to other accounts, I'd do it. Dodge and Cox is a worthy alternative to VG Total Int'l. Allocation of assets across accounts is fine, too.
Great! Thanks.
pingo wrote:
Fri May 25, 2018 6:25 pm
semperlux wrote:
Fri May 25, 2018 1:48 pm
I don't necessarily have to mirror my 401K to my Vanguard accounts, all of my large blend domestic and large blend international are in taxable accounts. However over the years my small cap domestic and small cap internationals have pushed out my mid caps into taxable as well. So I mainly need more room in tax advantaged accounts for my domestic small and international small, and my 401K choices are pretty poor for those.
semperlux wrote:
Fri May 25, 2018 1:48 pm
Is Fidelity International Small an active or passive fund? The ER of 0.99 is a bit more than Vanguard's FTSE All-World ex-US Small Index of 0.25.
It's hard to buck the Costs Matter Hypothesis, but I'm not convinced of the efficiency of the Intl Small Cap space to make Vanguard's Intl Small Cap option much more worthy. For what it's worth, I charted the longest period I could of VG's index and active Intl Small cap funds, along with a 1.28% ER version of your Fidelity International Small Cap Fund and the Schwab ETF I use:
Wow, from your chart, looks like Fidelity's International Small Cap kicks ass compared to Vanguard's FTSE All World ex-US Small; Is Fidelity's fund passive? Looks like the extra ER may be worth it over the long run.

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