I'm relatively inexperienced, and am looking for a new mutual fund to add to my Roth IRA. I am slowly adding them due to the minimum $3k to open, but a maximum $5.5k to contribute. Right now, I have:
- VBMFX (Total Bond Market Index Fund Investor Shares)
- VGTSX (Total International Stock Index Fund Investor Shares)
I am looking to add something that tracks the 500. There is the VFINX (500 Index Investor Shares) and the VQNPX (Growth and Income Fund Investor Shares). The VQNPX says its goal is to outperform the 500 index.
VFINX - Started in 2000, and its average annual return since inception is 6.1%. Expense Fee of 0.04%.
VQNPX - Started in 1986, and its average annual return since inception is 10.21%. Expense fee of 0.34%.
My question is, since the difference in returns is 4.11% which far outweighs the 0.3% difference in fees, why would anyone choose VFIAX over VQNPX. Aside from the lack of gaurantee that this will always be the case, it seems like a no brainer. What am I missing?
Submitted July 12, 2018 at 09:31AM by SNIPES0009 https://ift.tt/2urej5X
