|Expense Ratio (net)||0.25%|
|Category||Allocation--50% to 70% Equity|
|Last Cap Gain||0.00|
|Morningstar Risk Rating||Average|
|Beta (3Y Monthly)||1.01|
|5y Average Return||N/A|
|Average for Category||N/A|
|Inception Date||Jul 1, 1929|
How good are the mutual funds in your 401(k) plan? Choose wisely, and you might sip café au lait as you celebrate your retirement on an around-the-world cruise. Choose unwisely, and you might have to settle for the local Starbucks.Every year, with the help of financial data firm BrightScope, which ranks 401(k) plans, we look at the 100 mutual funds with the most assets in 401(k) and other defined-contribution plans, including 403(b)s. To help you pick the best mutual funds for your 401(k), we analyze the actively managed funds among the 100 most popular options. Most of the funds are solid, some are standout and only a handful are disappointing. In the end, 30 funds, described below, won our seal of approval.We didn't weigh in on the index funds that rank high in employer-sponsored plan assets because the art of choosing a good index fund rests on three simple questions: Which index do you want to emulate? How well has the fund done in matching that index? How much does the fund charge? We have no problem with the index funds listed in the top 100.But assessing actively managed mutual funds is trickier. We analyzed each fund's long-term returns and year-by-year performance. We looked past raw results to examine each fund's volatility and how it fared in difficult markets. We also considered manager tenure and fees, among other factors.Here are the 30 best mutual funds for 401(k) retirement savers, plucked out of the nation's 100 most popular options. Some of these funds might not be available in your 401(k), and some might not be suitable for your personal situation. But each of these mutual funds stands out for their quality, making it a good choice for its respective category. SEE ALSO: The Berkshire Hathaway Portfolio: All 47 Buffett Stocks Explained
We know you're stressed out. With everything you're expected to keep up with in a day, it may help to find ways to make your life a little easier here and there. Our strategies can help you simplify, streamline and organize your financial life to free up both time and cash. Take a look.
The following is our latest Fund Analyst Report for Vanguard Wellington VWELX . Morningstar Premium Members have access to full analyst reports such as this for more than 1,000 of the largest and best mutual funds. An experienced team employing a time-tested, risk-aware process, combined with low fees, underlie Vanguard Wellington's Morningstar Analyst Rating of Gold.
The stock market has given investors a bad case of whiplash over the past few months. In December, the Standard & Poor's 500-stock index tumbled 9%. Since then, however, the benchmark has reversed course and climbed 11%.When the market makes violent swings, the worst thing you can do is to try to stay in sync with it by selling when stocks fall and purchasing when they rebound. But if you own a fistful of volatile funds - even excellent ones - a market like today's can sucker you into making the wrong trades.The solution? If you've made a bad trade or two, or simply are losing sleep over the potential for another bout of market rockiness, consider replacing one or two of your most volatile funds - no matter how good they are - for more placid vehicles.Excellent work by Russel Kinnel at Morningstar has shown that individual investors have a much easier time holding on to less volatile funds than more volatile fare. Consequently, investors in those lower-risk funds, on average, tend to make more money over time than do investors in jackrabbit funds.The point, after all, isn't to own funds that will beat the benchmark in full-throttle bull markets. Less volatile funds likely will outpace the indexes during bear markets and earn healthy overall returns over a full market cycle while giving you more peace of mind.Here are five of the best mutual funds for a jumpy market like today's. Some are pure stock funds, while others hold some bonds. SEE ALSO: The 25 Best Low-Fee Mutual Funds You Can Buy
If you've built a solid portfolio of funds, the last thing you want to do is tear it apart and build a new one simply because the stock market is doing one of its periodic swan dives. But that doesn't mean you shouldn't tinker around the edges in a market that acts like it wants to go down. You might cut, say, 5% of your stock allocation and put the proceeds into a low-risk bond fund. If you think your investments need more rearranging, you might take your most volatile fund and replace it with a lower-risk offering. Where to look for a replacement? Vanguard funds include a fistful of first-rate defensive offerings that, while they'll still likely lose money in a bear market, they should still hold up better than most other funds. Here are the six best Vanguard funds to own in a bear market. Note: Some of these funds are only available directly from the low-cost provider. At the same time, if you use a discount broker, you may be able to buy cheaper Admiral shares without meeting Vanguard's minimum, which typically ranges from $10,000 to $50,000 depending on the fund. ### SEE ALSO: The 25 Best Low-Fee Mutual Funds You Can Buy