MarcAlan:However,I currently have Primecap Core in my taxable account. It has experienced management, a low tax ratio and only a 10% turnover according to Morningstar. Of course these things could change. I have only had the fund for three months so if I sell I will be subject to short term capital gains (33% bracket) as well as a 10% redemption fee from Vanguard.
Given the fund's recent gains, I would suggest waiting until the gains become long-term; you will get rid of the redemption fee, and reduce the tax bracket from 33% to 15%, so the total cost of selling after a year may be less. In addition, Primecap Core, as a low-turnover fund, is not likely to cost you too much extra in taxes. (I would still advise getting rid of it if the costs aren't too great; you may have a big tax bill when the fund changes managers.)
If the market happens to wipe out your gains before the year is out, that would be a good time to sell (and replace with Total Stock Market). However, note that if you sell at a loss, you cannot deduct the loss if you buy the same fund in your IRA within 30 days before or after.
