So, a Total Stock Market Index fund is always better for diversification (and less risk) than just a Large-cap? The Large-Cap fund by itself is more volatile/risky than the TOTAL Stock Market Index fund because it's not as diversified?
These are the funds I have access to in my 403b:
https://www.fidelity.com/mutual-funds/index-funds/overviewFor the 401k I am limited to these Stock Funds:
DOMINI SOCIAL EQ INV (DSEFX) 06/03/1991 Stock Investments Large Cap 13.97% 19.01% 14.06% 6.60% 12/31/2014
FID BLUE CHIP GR (FBGRX) 12/31/1987 Stock Investments Large Cap 14.60% 23.58% 17.04% 9.15% 12/31/2014
FID DIVIDEND GR (FDGFX) 04/27/1993 Stock Investments Large Cap 11.87% 20.46% 14.15% 7.19% 12/31/2014
FID FIDELITY FUND (FFIDX) 04/30/1930 Stock Investments Large Cap 12.85% 19.28% 13.68% 7.44% 12/31/2014
INVS DIVRS DIVD INV (LCEIX) 12/31/2001 Stock Investments Large Cap 12.09% 19.21% 14.26% 8.07% 12/31/2014
SPTN 500 INDEX ADV (FUSVX) 02/17/1988 Stock Investments Large Cap 13.62% 20.36% 15.40% 7.64% 12/31/2014
ARIEL FUND (ARGFX) 11/06/1986 Stock Investments Mid-Cap 10.95% 24.53% 16.62% 7.16% 12/31/2014
FID LEVERGD CO STK (FLVCX) 12/19/2000 Stock Investments Mid-Cap 5.59% 22.49% 15.38% 9.22% 12/31/2014
FID MID CAP STOCK (FMCSX) 03/29/1994 Stock Investments Mid-Cap 7.11% 19.60% 15.59% 9.23% 12/31/2014
SPTN EXT MKT IDX ADV (FSEVX) 11/05/1997 Stock Investments Mid-Cap 7.71% 20.68% 16.81% 9.37% 12/31/2014
FID STK SEL SM CAP (FDSCX) 06/28/1993 Stock Investments Small Cap 3.46% 16.61% 15.62% 7.05% 12/31/2014
NORTHERN SM CAP VAL (NOSGX) 03/31/1994 Stock Investments Small Cap 7.07% 18.46% 15.54% 8.22% 12/31/2014
So, I should go with the Spartan Total Market Index Fund for my 403b and add a percentage of mid/small cap options to my Spartan 500 401k? For the 401k bonds I have 20% in Invesco High Yield Fund R5 Class (AHIYX) because that seemed like the best choice among my options:
FID INTERMED BOND (FTHRX) 05/23/1975 Bond Investments Income 3.31% 2.51% 4.23% 4.11% 12/31/2014
INVS HIGH YLD R5 (AHIYX) 07/11/1978 Bond Investments Income 1.45% 8.67% 8.37% 7.31% 12/31/2014
PIM EM LOCAL BD INST (PELBX) 12/29/2006 Bond Investments Income -6.27% -1.12% 2.07% 4.62% 12/31/2014
PIMCO TOT RETURN ADM (PTRAX) 05/11/1987 Bond Investments Income 4.43% 4.00% 4.87% 5.72% 12/31/2014
To summarize:
403b (currently): 80% Spartan® 500 Index Fund - Fidelity Advantage Class (FUSVX) [ER: .07%]
20% Spartan® Long-Term Treasury Bond Index Fund - Fidelity Advantage Class (FLBAX) [ER: .1%]
403b (future): 80% SPTN TOT MKT IDX ADV (FSTVX)
20% Spartan® Long-Term Treasury Bond Index Fund - Fidelity Advantage Class (FLBAX) [ER: .1%] <--keep because of better ratings/ER than the US Bond Index Fund (better return 7.6% vs. 4.37% for US Bond Index Fund)?
401k (currently): 80% Spartan® 500 Index Fund - Fidelity Advantage Class (FUSVX) [ER: .07%]
20% Invesco High Yield Fund R5 Class (AHIYX)
401k (future): 80% (Spartan® 500 Index Fund+ ? % mid and small-cap funds)
20% Invesco High Yield Fund R5 Class (AHIYX)
Currently, my Fidelity Freedom funds appear to be a blend of 92% stocks and 8% bonds. Is there ever a benefit to just using a "blended" fund vs. trying to customize and "blend" one yourself?
Thanks for the detailed responses, Johnny847!