In yesterday’s post, it appears that I was a little too hard on the Contrafund. Dividend Growth Investor pointed out that the chart I used from Yahoo Finance didn’t account for dividend reinvestments. Check out this chart instead. This article from the Wall Street Journal supports what he is saying. The only fair thing to do is to include the Contrafund in my experiment. Since I had my 401(k) money in the Contrafund for years, it only seems fair to use it as a benchmark as well.
So, my portfolio now includes $30,000 in each of these 7 funds:
- VGT (Vanguard Information Technology): I love technology.
- VBR (Vanguard Small-Cap): Small cap, yay!
- VNQ (Vanguard REIT): Real estate.
- VXUS (Vanguard International Stock): Bonjour!
- SCHD (Schwab US Dividend Equity): For the dividend-heads.
- VTI (Vanguard Total Stock Market): The measuring stick.
- FCNTX (Fidelity Contrafund): The actively managed fund.
I like the changes:
- Dividend Mantra Jason is a smart guy and a dividend fanatic, so I’d rather go with his suggestion of SCHD over VIG.
- It will be fun to see how the actively managed Contrafund does against the passive gang of 6.
Tune in for the first update on May 12.
Oh, and if you did the math, you know that I have $65,000* left over. I’m not sure how or when I’ll deploy that yet. You’ll be the first to know when I do though.
*$65,000 is about what an entry level Tesla costs. Tempting, but I’m not that crazy.
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