When I first enrolled in my 401k, I didn't know anything and basically put almost all of my allocation into one fund (CREF-Stock). I now know that I should have a diversified portfolio, but I'm struggling with the fees that go with that. The CREF-Stock fund has a relatively low fee (.49%) and is diversified as follows: :
71.4% United States
21.9% Foreign - Developed
6.7% Foreign - Emerging
and
34.3% Mega-cap: over $50 billion
25.4% Large-cap: $15 billion–$50 billion
31.0% Mid-cap: $2 billion-$15 billion
9.3% Small-cap: under $2 billion
If I try to achieve diversification through multiple funds, I have control over the percent allocated to each area, but pay much higher fees. Here are the fees associated with specific funds:
1.23% Large-Cap Growth
1.22% Large-Cap Value
1.28% International
0.90% Small-Cap Blend
1.24% Mid-Cap Growth
So which is better, one diversified fund with low fees or several funds with higher fees, but I control the allocation?
FWIW, the 5yr and 10yr performances of all of these funds are within 1% of each other. Also, this question pertains only to how I am allocating the equity portion of my overall allocation.
Thank you for any advice on this matter.
71.4% United States
21.9% Foreign - Developed
6.7% Foreign - Emerging
and
34.3% Mega-cap: over $50 billion
25.4% Large-cap: $15 billion–$50 billion
31.0% Mid-cap: $2 billion-$15 billion
9.3% Small-cap: under $2 billion
If I try to achieve diversification through multiple funds, I have control over the percent allocated to each area, but pay much higher fees. Here are the fees associated with specific funds:
1.23% Large-Cap Growth
1.22% Large-Cap Value
1.28% International
0.90% Small-Cap Blend
1.24% Mid-Cap Growth
So which is better, one diversified fund with low fees or several funds with higher fees, but I control the allocation?
FWIW, the 5yr and 10yr performances of all of these funds are within 1% of each other. Also, this question pertains only to how I am allocating the equity portion of my overall allocation.
Thank you for any advice on this matter.