Year-to-Date 401(k) Return

I usually don’t check my 401(k) account until the time to update the net worth and even at that time, I didn’t look at the return because, first, I simply forgot to check and, second, I won’t make any change before the year end, no matter how good or bad the return is. But tonight, I logged into my 401(k) account at Fidelity and found that the year-to-date return is 8.4%, slightly ahead of the S&P 500, which has increased about 8% so far this year.

I have a very simple portfolio in my 401(k) account, with only four funds

and the Fidelity Real Estate Investment (FRESX) was only added early this year to give it a little more diversification. For this portfolio, most of the diversification come from Fidelity Freedom 2035 (FFTHX), which is a targeted retirement fund. An instant X-ray from Morningstar shows the asset allocation of my 401(k) as

with an expense ratio of 0.89%.

The two small-cap funds were added because FFTHX itself doesn’t have enough small-cap exposure (only about 5%). Overall, about 20% are invested in small-cap companies, 21% in mid-cap, and 59% in large-cap. However, I still feel that the 20% in small-cap is a little bit low and would like to see it at 25% level at least. This will be the task of rebalancing at the end of the year.

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