How do I know what funds in my 401k model the S&P 500, Russell 2000, or International indices?
Probably the easiest way to deal with this problem:
1) Go to Yahoo Finance (finance.yahoo.com) and type one of the ticker symbols into the box labeled "Enter Symbol(s)" and click the "Go" button.
2) Click on either "1y" (one year) or "2y" (two year) under the chart. This will show you a chart of the fund.
3) To compare the fund to the Russell 2000, type in "^rut" in the box above the chart (^ is made by hitting SHIFT and 6 at the same time). To compare the fund to the S&P 500, just click the S&P box.
4) Click "Compare" and see how the fund matches up to the different indices. You will not always find an exact match, but if the fund models either the S&P 500 or Russell 2000, you should be able to tell.
As far as the International indices, your 401k should make clear which funds fall into this category. As we only suggest an allocation of S&P 500, Russell 2000, and International, you can either mix the International percentage among the International funds listed or choose the strongest performer among them.
Each 401k has different rules about how often you are able to move money in and out of specific funds. Even within the same 401k plan you may have different rules for the different funds. Be aware of these rules before deciding whether or not you want to choose more than one international fund at a time. The same would hold true for putting more than one fund into the S&P 500 or Russell 2000 percentage. There is little reason to diversify among funds that aim to match the same index and you run the risk of violating the rules of your 401k if you end up doing this. If there is a large enough difference between two funds that model the Russell 2000 or the International indices, this would be a place to diversify.
