Even though SMIAX has “trememdous” earnings, look carefully at that Morningstar graph. *Every* small-cap index fund has been performing well recently. SMIAX is trailing the index because of it’s relatively big 0.95% expense ratio. (Pink line vs. Red Line)

Now check out NAESX, with an expense ratio of just 0.23%. The pink and red lines are basically aligned. As always, past performance does not guarantee future results. I recommend setting up a good asset allocation using book like A Random Walk Down Wall Street.

I agree with the usual advice – 401k up to match, then credit card bills, then Roth IRA up to max, then back to 401k.