This is the second USC 401k Plan option scanned. The first was the Prudential option and this scan is for the Vanguard option. It has 75 investment options way too many for most investors to evaluate and rebalance on a regular basis. Funds without positive 5yr Sharpe ratios are not in the scan and a few redundant funds were eliminated too leaving 50 funds in the scan. The Balanced portfolio invested 5% or more of the Plan in only 6 funds with 31 funds having less than 2% invested in them. That's not a good portfolio either; still way too many funds to manage. If I were a plan participant there are only about 12 funds in the Vanguard 401k option that would be in my portfolio. Individual plan participants will differ on the 12 but you do not need 50 funds in your retirement portfolio.
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