February Large Cap Value Fund Addition to the WylieMoney Slowly Portfolio

Each month since May 1st of 2007 I have been adding one fund at a time to a hypothetical portfolio. I am adding funds from one of 20 mutual fund categories in the order I first researched mutual funds for this experiment.

You can read more about this experiment here.

Adding one fund per month is meant to simulate investing over time instead of investing all at once. I picked May 1st as my start date because that was when I was done picking 20 funds to hypothetically invest.

The 10th addition is a Large Cap Value fund. As I add each fund, I take another look at no-load, low minimum investment funds available through Etrade to see if my original pick is still the best available.

In this case, I'm sticking with my original pick:

Large Cap Value - AAGPX American Beacon Lg Cap Val My Post

That means that on the first day the market looks to close sharply down in February, I will add this fund to the WylieMoney Slowly portfolio.

The other two Large Cap Value no-load funds available through Etrade that were worth a look were Bridgeway Large-Cap Value and ING Corporate Leaders Trust.

The Bridgeway fund requires at least $500 for subsequent investments and that is above my minimum. It also has slightly higher turnover than American Beacon Lg Cap Value.

ING Corporate Leaders Trust only holds 23 stocks. It was set up in 1935 and has 0 turnover. As an investment option, it is worth thinking about, but paying even as little as 0.40% for a fund that does nothing is a bit hard to swallow.

That's not really fair- it does let you own 23 companies for less than you would pay in brokerage fees to buy the stocks individually, but for this experiment, I decided to stick to more traditional funds that invest in more companies.

No comments: