My company just started a 401K. I elected to get into the Vanguard Energy Fund. Doing great so far. When I first got into the small cap fund it was at $14. You can't go wrong with Vanguard.
I agree! Jack Bogle, Vanguard Group founder has a good book out from many years ago "Common Sense on Mutual funds". I would recommend reading it and checking out www.bogleheads.org for more information on questions on Vanguard's funds. Happy Holidays!
They are great for many reasons. Just remember to watch your asset allocation.