Who knows? Maybe you will roll the dice and stick with these funds and they will more than justify their expense over the next five years. Unfortunately, the odds are not in your favor and I personally would opt for a low cost bond index fund like the Vanguard Long-Term Bond Index Fund (VBLTX) which charges only 0.20% expense ratio and achieved a similar 5 year return. Vanguard also has a great low-cost equity index, the Vanguard Total Stock Market Index (VTSMX), which charges only 0.17% expense ratio and returned nearly 8% over the past five years.
Whether an equity fund or a bond fund is better for you depends highly on your personal circumstances. You say that you are young so it’s likely you can tolerate a higher than average amount of risk in pursuit of higher returns.
The typical rule of thumb is to subtract your age from 120 or 100 to get the percentage of your portfolio that you should invest in equities. In your case that would be 79-99% of your portfolio in stocks and the rest in bonds. Maybe put 85% of your money in a good equity fund like VTSMX and the other 15% in a great bond fund like VBLTX. Just remember to take into account any other assets or income streams (like your salary) and to construct a well-diversified global portfolio.
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