Magellan basically tracks the S&P500, it just has higher fees. IMHO, a better spread would be S&P500, S&P400, and the Russell2000. Covers all your bases. The Russell has grown the most this year as small caps and tech stocks have bounced back, and the midcap400 has outperformed the S&P500 pretty consistently over the last 5 years. The bright horizon funds are stock/bond blends that convert mostly to bonds as you approach retirement age, under the theory that bonds are safer, but since you can, at any time, log into your account and transfer some or all of your money into a bond fun with no fees or penalties, I don't see the point. In addition, the Bright horizon funds are managed, like Magellan, and carry higher fees than the index funds. Getting into the stock program is a great idea, but not until you have maxed out your 401k contributions (17% pretax, 5% post), because a tax free investment carries a guaranteed return no matter how the market performs(reduction in your taxable income = reduction in your tax bill), while the stock program has no such guarantee. As always, past performance is no guarantee of future returns, and the above is simply my opinion.