WSHFX
WASHINGTON MUTUAL INVESTORS FUND CLASS F-1
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Age 84 70% Stocks (WSHFX, DIVO, VUG) 15% Bonds (ICMUX) 15% Cash
Depends on your goals and risk tolerance. If you're young, go for some where growth is the point in your retirement accounts. PRWCX and GFAFX are two I'm invested in for my retirement accounts. In accounts that have nearer term goals, like down payments for a house or something, go for ones where capital retention is the point and pepper in some bonds. WSHFX, BALFX, ANBEX
At the moment - 50% of the target date fund SWYMX holds the fund - SCHX - [https://www.schwab.com/research/stocks/quotes/summary/schx](https://www.schwab.com/research/stocks/quotes/summary/schx) . The fund SCHX is a US large cap equity fund - it is similar to SWPPX. So if you hold both SWYMX and SWPPX in your portfolio - your portfolio allocation will have a higher percentage exposed to US large cap equities. Similarly - WSHFX is also a US large cap equity fund but it's an actively managed fund. So your portfolio is tilted (or "overweighted") towards US large cap equities more than what may be in a typical 2050 target date portfolio. I mentioned it because equities are considered riskier and you mentioned a low to medium risk tolerance. While a higher equity percentage in US large cap is not necessarily bad at your age and time horizon, it may not fit your risk tolerance. Bear in mind that higher risk can mean higher potential returns. Over time as 2050 approaches, the target date fund will adjust the equity portion of the fund down from 90% to hold more bonds. So you have to decide in the next 5, 10, 15, 20 years if you want to also reduce your SWPPX allocation of your portfolio.
The more you educate yourself the less your will agonize yourself. Also, the more you simplify, the less you should agonize. ETFs trade like individual stocks and are entire under your control. There is no reason to use mutual funds which have a level of opaqueness to them that offers no value. SWPPX is fine and cheaper to a nearly irrelevant degree than the VOO etf, and if you _want_ a target fund then SWYMX is fine... but WSHFX is why mutual funds can suck. It's performance has been pitiful, and (if I'm reading this right) they charge you 1.06% compared to SWPPX's .02%. Get rid of it. Unless you want to try something else, take the money from WSHFX and put it in the VOO etf or into your SWPPX mutual fund. Even though it is the same as SWPPX, I'd reccomend VOO so you can see how ETFs work which will allow you to comfortably choose other ETFs in the future. What matters though is just getting rid of WSHFX.
If you don't have a reason to hold WSHFX - you may want to reconsider why that's in your portfolio. Diversification isn't really a reason because you have a target date fund in your portfolio. The reason to have different funds is if you think that you want exposure or over-weighting to some investment style, sector, asset class, etc. Your choice of SWYMX is a fund of funds where the fund allocation is managed for you. SWYMX holds other funds and has about 90% equities and 9% bonds which is probably about right for a 2050 target date. You are over-weighting your target date fund with an allocation of SWPPX which gives you additional concentration in US large cap equities. I am assuming you have a 25 year horizon which is why you selected a 2050 target date. Given your comment that you have medium risk - your allocation to the target date fund probably should be the largest percentage of your portfolio.
I ask myself that from time to time. I can’t even remember why I bought WSHFX to be frank! I’m sure it came out of me feeling I needed a different fund and googling some list of recommendations. Wish I had more of a rationale.
Fwiw - You're probably not going to find too many fans of funds from Capital Group in r/investing. Their funds tend to have a higher than average expense ratio - was there a reason why you selected WSHFX?
I (35F) have only been able to seriously start investing last year. I have basic, superficial knowledge, but I can find myself in rabbit holes the more I research. For background, I have a Roth IRA that I max out, and a personal brokerage account both with Schwabs (I also max out my 401k and invest in a Target Date 2050 fund with Fidelity and am granted a generous amount of RSUs from my company quarterly which I sell and reinvest into my portfolio funds as well as put away into a HYSA that I’ve also built up quite a bit). My interest is low-medium risk and long-term investment. Is my current portfolio of mutual funds at Schwabs good enough to stick with? Or should there be diversification somewhere else? SWPPX - Schwab’s S&P 500 SWYMX - Schwab’s Target 2050 WSHFX - America Funds Washington Also feeling tripped up on the difference between ETFs and mutual funds. I buy mutual exclusively (not for any particular reason). Am I putting my money into the right places? Or would you recommend adding any others/stop investing in any of my current? This novice trying to secure herself a stable future would appreciate any feedback!
I (35F) have only been able to seriously start investing last year. I have basic, superficial knowledge, but I can find myself in rabbit holes the more I research. For background, I have a Roth IRA that I max out, and a personal brokerage account both with Schwabs (I also max out my 401k and invest in a Target Date 2050 fund with Fidelity and am granted a generous amount of RSUs from my company quarterly which I sell and reinvest into my portfolio funds as well as put away into a HYSA that I’ve also built up quite a bit). My interest is low-medium risk and long-term investment. Is my current portfolio of mutual funds at Schwabs good enough to stick with? Or should there be diversification somewhere else? SWPPX - Schwab’s S&P 500 SWYMX - Schwab’s Target 2050 WSHFX - America Funds Washington Also feeling tripped up on the difference between ETFs and mutual funds. I buy mutual exclusively (not for any particular reason). Am I putting my money into the right places? Or would you recommend adding any others/stop investing in any of my current? This novice trying to secure herself a stable future would appreciate any feedback!