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Subject:  Re: index fund? Date:  10/23/2001  2:15 AM
Author:  BlueAdept Number:  13465 of 26303

101070 writes:

Greetings all. I have a rookie question....I am setting up my 401k and have been thinking about choosing a Wells Fargo S&P 500 Stock Fund for EBT. Is this a true index fund? I can't find any info on it, and would it be foolish to put my money, I'm also thinking of Franklin Small cap fund. I apologize if this question is redundant. Cheers. And Thank you for any information.

Yes, it's a real index fund. The symbol should be NVINX (you can check with your Human Resources department to make sure it's the same fund). NVINX is actually a fairly good index fund with a low expense ratio and above-average performance (compared against other S&P 500 index funds).

Here is more information:

The Franklin Small Cap funds appear to have much larger expense ratios (they're not index funds). If you want some small-cap exposure, see if you have the option of a small-cap index fund (Russell 2000 or S&P 600), an extended market index fund (Wilshire 4500), or a total stock market index fund (Wilshire 5000). I'd be surprised if you had a second index fund, but some people have better plans than others.

More information on all those indices is here:

(The Wilshire 4500 is just the Wilshire 5000 minus the S&P 500 stocks. It can be used in combination with the S&P 500 to approximate the total stock market.)

- BlueAdept

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