DCA-ing into HSA: VIGIX (Vanguard Large Growth) or SWPPX (S&P 500)?

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finagle
Posts: 35
Joined: Sun Oct 30, 2016 9:33 am

DCA-ing into HSA: VIGIX (Vanguard Large Growth) or SWPPX (S&P 500)?

Post by finagle » Wed Aug 15, 2018 6:03 pm

Please help me pick if you prefer apples (VIGIX) or oranges (SWPPX). Both are at all-time highs.

I will Dollar-Cost-Average $500 per month into my HSA investment account.
I have decided to allot $300 to VIEIX (Vanguard Extended Market Index).
For the remaining $200 per month, I'm torn between VIGIX (Vanguard Large Growth) or SWPPX (S&P 500).

Here's the 4 cheapest funds offered in my HSA:
- Schwab S&P 500 (SWPPX), er% 0.03... Large blend
- Vanguard Growth Index (VIGIX), er% 0.04... Large Growth

-Schwab Small Cap (SWSSX), er% 0.05... Small Blend (not interested in this fund)
- Vanguard Extended Market, er% 0.06...Mid-Cap Blend (putting in $300 per month)

Obviously the S&P 500 and Large Growth VIGIX are over-valued now, Large Growth VIGIX moreso because its P/E ratio is 26.9.
My horizon is 30-35 years before withdrawing, I guess Large Growth VIGIX will have more returns than the S&P 500. Wonder if Large Growth will still blossom for a few more months/years due to the tech stocks skyrocketing...


Side note: my HSA administrator is "connectyourcare". Seems pretty decent. The literature said that if one left the company, the monthly service fee is $0 (zero). The HSA investment account is $24 per year.

MotoTrojan
Posts: 2107
Joined: Wed Feb 01, 2017 8:39 pm

Re: DCA-ing into HSA: VIGIX (Vanguard Large Growth) or SWPPX (S&P 500)?

Post by MotoTrojan » Wed Aug 15, 2018 7:11 pm

You lost me at obviously being overvalued. The market disagrees.

What does the rest of your portfolio look like? It should be looked at as one entity.

I’d do S&P500 and likely less of a tilt to the extended market unless I needed it to balance total portfolio.

Also are you aware Large Value has beaten Large Growth over most 30-35 year spans?

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