Wayne,
Thanks for your very detailed reply. Your guidance is much appreciated.
Two thoughts that I have as I figure out what I will do next:
- I am an indexer and am determined that indexing, whether with ETFs or Vanguard-like funds, is the way to go. Having said that, my American Funds retirement account is by far my biggest account, and the funds available to me are solid and fairly cheap with the R4 share class. So I need to figure out whether I should treat my AF account as a separate, non-indexed AA, or if I should have certain slices (EuroPacific as intl, Bond Fund, for instance) solely in my AF account and focus on other categories in my other accounts. Does this make sense?
- There's a fair amount of overlap in the four main domestic equity funds in my account (Growth, Investment, Income and WashMut). For instance, AT&T is a top 5 holding in three of the funds, Chevron is in the top 10 of three of them, same with Microsoft. So to hold all four of them seems to set me up for an unhealthy concentration of some stocks. There's also a sizeable intl component in all of the above except for WashMut, which makes it tough to get my intl AA consistent. It would seem that I could keep two of the four domestic funds, and sell the other two. I notice that WashMut and Growth have comparatively little overlap. What do you think of this strategy?
I like your PRNEX suggestion. Seems like a nice alternative to the Vanguard Energy ETF that I am considering.
Dan
