PRIMECAP ADMIRAL

[WYOGO]

If you had access to VPMAX along with VIIIX and had the option of holding both or one what would you choose, what ratios and why?

I am interested in thoughts regarding this lower cost exceptionally performing actively managed fund. Though it is approximately twenty times more expensive than VIIIX, do you see this as a performer worth the expense? Core or Complementary?

Thanks

[Roots&Wings]

Personally own VPMAX (and POAGX).  I'm somewhat a Primecap fan.  VPMAX is ~15% of my stash.   

Although past performance is no guarantee of future gains, the after tax/fees performance of their funds beating the index got me years ago.  Will that performance continue?  Who knows.  If the management team changed or they divest their significant investment in their own fund, that would make me consider a change. 

[BarkyardBQ]

@step-in-time

Do the taxes hit you if you hold VPMAX in a 401k? I had this fund but switched to VINIX cause of the cost and taxes. But I was new then, and decided lower cost average return was better.

[Roots&Wings]

@step-in-time

Do the taxes hit you if you hold VPMAX in a 401k? I had this fund but switched to VINIX cause of the cost and taxes. But I was new then, and decided lower cost average return was better.

Hi, sorry missed your question earlier!  Own it in my taxable account, hence comparing the after-tax returns.  If I was so lucky to have it in my 401k, I'd compare the after-fee (expense ratio) returns since it would grow tax deferred in a traditional 401k.

But again, past performance is no guarantee...it's a matter of investment goals/preferences, your target allocations, comfort zone, how much time you want to spend, etc.  Personally enjoy managing my investments and researching this stuff (something I do with my dad), but if I didn't, would go with the index and forget it.