Author Topic: Vanguard 500 fund and Large Cap Growth  (Read 2013 times)

D Bopp

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Vanguard 500 fund and Large Cap Growth
« on: April 02, 2016, 05:48:37 AM »
I put a lot of my 401k contributions into VFIAX, the Vanguard 500 admiral fund.  Would there be any benefit to also investing in VIGAX, Vanguard's Large Cap Growth fund? It looks like they both have similar holdings in their portfolios.  VFIAX is 0.05% fees, and VIGAX is 0.09% 

Just for the record, my other funds I have are VBIAX (Balanced), VEXRX (Vanguard Explorer), and VMGMX (Midcap)

Thanks

GrowingTheGreen

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Re: Vanguard 500 fund and Large Cap Growth
« Reply #1 on: April 02, 2016, 07:26:28 AM »
My opinion is that you'd just be investing in different flavors of vanilla. I don't really think it could do any harm, but I don't think you're missing out on something big either.

Heckler

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forummm

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Re: Vanguard 500 fund and Large Cap Growth
« Reply #3 on: April 02, 2016, 09:36:10 AM »
Generally my philosophy is to own everything. It should optimize the diversification, return, and volatility tradeoffs. So if you have the 500 index fund, that's owning about 80% of US equities, and that's what I'd go with. In my other accounts I would add VEXAX and VTIAX to provide the rest of the exposure. Something like 40% VFIAX, 10% VEMAX, 50% VTIAX gets you very close to the global market cap distribution.

MustacheAndaHalf

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Re: Vanguard 500 fund and Large Cap Growth
« Reply #4 on: April 03, 2016, 11:00:35 AM »
Technically if you invest in Vanguard Growth and Vanguard Value you do get some additional stocks beyond what's in the S&P 500.  But if you're looking to cover more stocks for a low expense, why not use Vanguard Total Stock Market instead?  The ETF and admiral shares cost 0.05%, the same as the S&P 500 fund you already use.

D Bopp

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Re: Vanguard 500 fund and Large Cap Growth
« Reply #5 on: April 03, 2016, 03:12:45 PM »
Thanks for the replies!  The reason I mentioned the options I did in my post is because I'm limited to a handful of options in my current 401k.  The 500 fund seems to be the best option. I also have the option for the Vanguard large cap fund as well.  I would love to put money in the Total market fund, but it's not available unfortunately.