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What is a core fund? In regards to mutual funds.?


Would Vanguard Total Stock Market index fund be a core fund?

http://quicktake.morningstar.com/Fund/Sn...

Core funds combine different types of investments in a single mutual fund. The goal? Diversification. Core funds can be the essential building blocks or cornerstones of a portfolio because they focus on producing long-term results while attempting to manage risk.

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Vanguard Total Stock Market Index fund or the equiv. ETF, which is VTI, is not considered a core fund. The core fund is actively managed, Vanguards fund is passive and just tries to mimic the index both great ways to invest. I prefer passive using timing model of someone like bob brinker @ bobbrinker.com . I see no reason to take on the additional expenses and tax inefficiences of a managed fund.

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