Some people don't realize this, but Vanguard has a lot more than just index funds. They also have low-fee actively managed funds, some of which have in the past performed extremely well. Just one example since people always ask. If you invested $10,000 in Vanguard Health Care Fund (VGHAX) in 2004, your $10,000 would have been turned into $33,000. If you invested $10,000 in Vanguard Total Stock Market Fund (VTSAX) in 2004, your $10,000 would have been turned into $22,000. Holy shit, why don't I put half my portfolio in VGHAX then? Index funds are for suckas!
Well, that was the past ten years. What will the return of both funds be from 2014-2014? Can you guarantee to me that the health care fund will outperform the total stock market fund? It possibly will, but your risk is also a lot higher being invested in just one sector of the economy.
Of course, in all honesty, the health care fund likely will outperform a total stock market index fund. But it would be hard to bet my retirement on it :)