Among the larger accounts in my control - Van Gogh and El Greco, Van Gogh follows the Index fund model - it only invests in different kinds of index funds to achieve the desired asset allocation. El Greco is currently structured the same way. I am now changing El Greco to invest in actively managed mutual funds. When the next rebalancing happens, El Greco will invest in the following actively managed funds:
- Vanguared Wellington Fund (20%)
- Fidelity Contrafund (20%)
- American EuroPacific Growth Fund (20%)
- BlackRock EAFE Index (20%)
- Vanguard Long Term Investment Grade Fund (20%)
Only the EAFE Index above is not an actively managed fund. I had to keep it there to keep a decent allocation to non-US stock. The asset allocation above also follows the 80% Equity, 20% Bond model that I wanted to reach in this account.
It will be interesting to compare the performance of index funds based Van Gogh and actively managed funds based El Greco as some time passes.
Dali, Dream Caused by the Flight of a Bee around a Pomegranate. One Second before Awakening; a triumph of sheer imagination!
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