Just to be clear, I only trade individual stocks on my Play Money portfolio. All our retirements funds are going to stay in low-cost index funds. Currently everything is in two funds – Vanguard Target Retirement 2035 (VTTHX) and Vanguard Target Retirement 2045 (VTIVX).
According to Vanguard.com, VTTHX has a year-to-date (YTD) return of 6.82%, and VTIVX has a year-to-date return of 7.54%. Not a bad year, their S&P 500 index fund only has a YTD return of 5.93%. The international diversification of this fund of funds has helped this year, with the Vanguard Pacific Stock Index Fund (VPACX) returning 22.28% YTD. I’ve already got my $8,000 ($4,000 x 2) ready to invest in our Roth IRAs in January.