Join Early Retirement Today
Thread Tools Search this Thread Display Modes
Vanguard Market Neutral Fund
Old 09-26-2016, 04:21 PM   #1
Give me a museum and I'll fill it. (Picasso)
Give me a forum ...
pb4uski's Avatar
Join Date: Nov 2010
Location: Vermont & Sarasota, FL
Posts: 13,201
Vanguard Market Neutral Fund

Is anyone out there using this fund? If so, what say you? Considering it as a bond fund substitute.

This fund has a unique and complex investment approach, compared with other Vanguard funds. Its goal is to “neutralize,” or limit, the effect of stock market movement on returns. Because of this, the fund’s return is often uncorrelated to that of the stock market. Unlike other Vanguard funds, this fund uses long- and short-selling strategies, which involve specific risks not apparent in traditional mutual funds. The fund may be appropriate for a small portion of an already well-diversified portfolio.
Of course with a $250,000 minimum if it is to be a "small portion of an already well-diversified portfolio" then it would have to be a pretty big portfolio!

If something cannot endure laughter.... it cannot endure.
Patience is the art of concealing your impatience.
pb4uski is offline   Reply With Quote
Join the #1 Early Retirement and Financial Independence Forum Today - It's Totally Free!

Are you planning to be financially independent as early as possible so you can live life on your own terms? Discuss successful investing strategies, asset allocation models, tax strategies and other related topics in our online forum community. Our members range from young folks just starting their journey to financial independence, military retirees and even multimillionaires. No matter where you fit in you'll find that is a great community to join. Best of all it's totally FREE!

You are currently viewing our boards as a guest so you have limited access to our community. Please take the time to register and you will gain a lot of great new features including; the ability to participate in discussions, network with our members, see fewer ads, upload photographs, create a retirement blog, send private messages and so much, much more!

Old 09-26-2016, 04:41 PM   #2
Give me a museum and I'll fill it. (Picasso)
Give me a forum ...
braumeister's Avatar
Join Date: Feb 2010
Posts: 6,207
This fund has a unique and complex investment approach
They lost me at this point.

braumeister is online now   Reply With Quote
Old 09-26-2016, 09:58 PM   #3
Thinks s/he gets paid by the post
Onward's Avatar
Join Date: Jul 2009
Posts: 1,567
IMO Vanguard has gone somewhat off the rails since Bogle stepped down.
And if I claim to be a wise man, it surely means that I don't know.
Onward is offline   Reply With Quote
Old 09-27-2016, 01:12 AM   #4
Confused about dryer sheets
Join Date: Apr 2013
Posts: 7

I use it as a portion of my portfolio; however, I primarily use the Managed Payout (VPGDX) fund in my taxable investments. Hence part of the portfolio.

It is a stock based fund, but produces returns similar to bonds. There is a lot of hate and discontent surrounding it. I think it is a nice part of the overall Managed Payout fund, as its price is relatively stable, while producing some returns.

As far as using it on your own. I would not recommend it, unless you have a massive amount invested elsewhere and are looking to somehow diversify. Hope this helps.

DyNess is offline   Reply With Quote
Old 09-27-2016, 05:35 AM   #5
Recycles dryer sheets
Markola's Avatar
Join Date: Nov 2013
Posts: 439
It's in the portfolio of the Vanguard Managed Payout Fund, which sunk like everything else in 08/09 and has been lackluster since. Like a lot of market strategies, it makes sense on paper.
Markola is offline   Reply With Quote
Old 09-28-2016, 03:02 PM   #6
Walt34's Avatar
Join Date: Dec 2007
Location: Eastern WV Panhandle
Posts: 14,122
Originally Posted by Onward View Post
IMO Vanguard has gone somewhat off the rails since Bogle stepped down.
That may well be. A while back I received a letter from them about a free consultation, so I called. It turned out to be they wanted me to subscribe to a "management group" (I think that's what he called it.) that would manage my funds. For a 1% fee. He goes on to say that in general they do better than 2% or more than people can do by themselves. Knowing the answer, I ask "Is that guaranteed?" Well, no.

Finding this very difficult to believe since it is contrary to everything I've read on investing I declined the offer.
I heard the call to do nothing. So I answered it.
Walt34 is online now   Reply With Quote
Old 09-28-2016, 03:41 PM   #7
Recycles dryer sheets
Join Date: Jun 2016
Location: Denver
Posts: 371
I had a fund like this from Guggenheim. It ultimately underperformed and was very expensive. I dropped it.

COcheesehead is offline   Reply With Quote

Currently Active Users Viewing This Thread: 1 (0 members and 1 guests)
Thread Tools Search this Thread
Search this Thread:

Advanced Search
Display Modes

Posting Rules
You may not post new threads
You may not post replies
You may not post attachments
You may not edit your posts

BB code is On
Smilies are On
[IMG] code is On
HTML code is Off
Trackbacks are Off
Pingbacks are Off
Refbacks are Off

Similar Threads
Thread Thread Starter Forum Replies Last Post
Market Neutral Fund - huh? Rich_by_the_Bay FIRE and Money 8 08-11-2008 06:25 PM
Vanguard Market Neutral Fund - opinions? Salaryman Stock Picking and Market Strategy 0 02-29-2008 09:08 PM
Vanguard market neutral fund holdings cute fuzzy bunny FIRE and Money 2 12-07-2007 04:05 PM
eBay neutral feedback?!? Nords Other topics 14 01-03-2006 06:11 PM
Market neutral funds wildcat FIRE and Money 0 03-31-2005 02:49 PM


All times are GMT -6. The time now is 03:08 PM.
Powered by vBulletin® Version 3.8.8 Beta 1
Copyright ©2000 - 2016, vBulletin Solutions, Inc.