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Certainly Index 500 is a good place to start in terms of a large-cap mutual fund.

But as I've said to everyone else asking this question, I feel that this index is extremely overvalued swith respect to the rest of the market, and if you chase the 500 going after its current outperformance, well, the same people who chased it when it outperformed may be the first to pull out when it starts to lag (it can't outperform value or small caps at their current levels forever), and suddenly Index 500 could be a laggard.

I'd stick with an unemotional diversified index allocation -- say 50% in large caps (like Index 500), 25% in small caps and 25% international. I'm afraid of putting all the eggs in the Index 500 basket at current price levels compared to the rest of the market.

Tim
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