Cruian t1_j6owhf2 wrote on January 31, 2023 at 9:25 PM

>given these are conservative funds,

Is this referring to the employer account fine being conservative or FZROX + FZILX?

>FZROX: 80%

>FZILX: 20%

That's half the global market cap weight of FZILX. What's your reasoning on that?

Such_Occasion_5760 OP t1_j6oxph7 wrote on January 31, 2023 at 9:33 PM

I was these FZROX + FZILX funds conservative due to their exposure to OVERALL domestic & International instead of just Large carp(FXAIX or SP500) or some blue chip-specific funds. My employer funds are invested in 20-30 funds

My reasoning to choose is, obviously the total US market(FZROX) and some diversification of my portfolio to the international market through FZILX. Would you recommend All-In on FZROX instead?

Cruian t1_j6oy7r0 wrote on January 31, 2023 at 9:36 PM

>I was these FZROX + FZILX funds conservative due to their exposure to OVERALL domestic & International instead of just Large carp(FXAIX or SP500) or some blue chip-specific funds.

But small caps are riskier than large caps (and have better expected long term returns than large caps do). So while you have more holdings, the extra holdings are more aggressive than the more narrow option.

>My employer funds are invested in 20-30 funds

Wow. That's a lot.

>Would you recommend All-In on FZROX instead?

No. I'd go the opposite: basically double FZILX (so 60% FZROX + 40% FZILX), as that is roughly the current global market cap weight.

Such_Occasion_5760 OP t1_j6oyilq wrote on January 31, 2023 at 9:38 PM

Would you say FXAIX instead of FZROX?

Cruian t1_j6oyvyj wrote on January 31, 2023 at 9:40 PM

No. Did I say something that would suggest that?

FXAIX is more conservative than FZROX and has lower expected long term returns. "Small" is a compensated risk factor, FZROX gives you some exposure to that while FXAIX didn't give you any.