Join Early Retirement Today
Reply
 
Thread Tools Search this Thread Display Modes
Which Vanguard fund
Old 09-19-2008, 09:41 PM   #1
Recycles dryer sheets
 
Join Date: Jun 2007
Posts: 84
Which Vanguard fund

would you purchase Monday for maximum return as a long term investment.
__________________

__________________
Florida 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 Early-Retirement.org 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 09-19-2008, 09:59 PM   #2
Full time employment: Posting here.
 
Join Date: Nov 2005
Posts: 828
It's impossible to answer this - there are too many unspecified variables. For example, what's your risk tolerance? What model for the future evolution of American and world economies do you prefer? Do you believe that the assumptions that have served the 'mature' economies well for the past 220 years (with a few blips along the way) are sustainable? If not, when do we 'jump the shark' as the accumulated weight of our foolish unsustainable activities becomes too great to bear?

If you believe that the past is perfectly prologue, then all you have to do is scan the universe of VG funds and pick the one that has performed best over your time frame of interest.

Good luck!
__________________

__________________
socca is offline   Reply With Quote
Old 09-19-2008, 10:19 PM   #3
Thinks s/he gets paid by the post
73ss454's Avatar
 
Join Date: Oct 2004
Location: LaLa Land
Posts: 4,378
Just wait till Monday and see what the market is doing. Whether you purchase the fund in the AM or the afternoon you still pay the closing price at 4 PM. So see what's happeing during the day and make your decission after 3PM but before 4PM.
__________________
73ss454 is offline   Reply With Quote
Old 09-19-2008, 10:46 PM   #4
Give me a museum and I'll fill it. (Picasso)
Give me a forum ...
cute fuzzy bunny's Avatar
 
Join Date: Dec 2003
Location: Losing my whump
Posts: 22,697
Tough question without more information. Vanguard Energy will probably be one of the highest, if not THE highest return for the longer term. But I dont think I'd buy it on Monday...I think I'd wait until oil finishes going down.

For something thats been punched hard in the face this year but should be great long term, either the International Value or Intl Growth funds are good choices.

For something that hasnt taken too much of a beating, offers good diversity, and will probably do very well in the long haul, the Extended Market index.

Or just the plain old Total Stock Market. Hell, its beaten all the similar American funds over the last 15 years. And its cheap!
__________________
Be fearful when others are greedy, and greedy when others are fearful. Just another form of "buy low, sell high" for those who have trouble with things. This rule is not universal. Do not buy a 1973 Pinto because everyone else is afraid of it.
cute fuzzy bunny is offline   Reply With Quote
Old 09-19-2008, 11:42 PM   #5
Recycles dryer sheets
slouch's Avatar
 
Join Date: Aug 2008
Posts: 152
Quote:
Originally Posted by cute fuzzy bunny View Post
Total Stock Market. Hell, its beaten all the similar American funds over the last 15 years. And its cheap!
<pirate>Arrrr</pirate>, I think CFB is attempting to derail the thread with yet another Vanguard versus American funds fight.


And just to not be left out of the thread - I recommend purchasing VISVX Monday and holding it for 10-20 years.
__________________
slouch is offline   Reply With Quote
Old 09-20-2008, 09:01 AM   #6
Full time employment: Posting here.
Retire Soon's Avatar
 
Join Date: Nov 2005
Posts: 655
I'd probably go with Vanguard Total Stock Market. It may not give you maximum return, but you'll beat at least one-half or more of all funds over the long term. I'm not prejudiced against other index funds, it's just that I have all of my assets with Vanguard.

No one can predict what will be the best fund to buy for the long term, but at least you can be rest assured that you won't end up in the bottom quadrant of the universe of mutual funds.
__________________
"I went to the woods because I wished to live deliberately... and not, when I came to die, discover that I had not lived."

--Henry David Thoreau
Retire Soon is offline   Reply With Quote
Old 09-20-2008, 11:05 AM   #7
Recycles dryer sheets
 
Join Date: Jun 2007
Posts: 84
Quote:
Originally Posted by Retire Soon View Post
I'd probably go with Vanguard Total Stock Market. It may not give you maximum return, but you'll beat at least one-half or more of all funds over the long term. I'm not prejudiced against other index funds, it's just that I have all of my assets with Vanguard.

Total Stock Market is what I had in mind.
Just fishing for opinions.
__________________
Florida is offline   Reply With Quote
Old 09-20-2008, 11:13 AM   #8
Give me a museum and I'll fill it. (Picasso)
Give me a forum ...
freebird5825's Avatar
 
Join Date: Feb 2008
Location: East Nowhere, 43N Latitude, NY
Posts: 9,017
VG Energy is a fave of mine for very long term. Mine is in a Roth so i get the tax advantage there.
VG Total Stock Market, coupled with Total Bond Market if you need that diversifer, are two excellent choices.
as far as buying it Monday goes, if you can time the market, let us all know that secret. j/k
__________________
"All our dreams can come true, if we have the courage to pursue them." - Walt Disney
freebird5825 is offline   Reply With Quote
Old 09-20-2008, 11:25 AM   #9
Give me a museum and I'll fill it. (Picasso)
Give me a forum ...
cute fuzzy bunny's Avatar
 
Join Date: Dec 2003
Location: Losing my whump
Posts: 22,697
I'd couple the TSM with the short term investment grade fund right now. Rates will eventually be headed up and the TBM will take a few bad dips when that happens. I dont think theres a whole lot of benefit to taking a slight return advantage coupled with a much higher risk component.
__________________
Be fearful when others are greedy, and greedy when others are fearful. Just another form of "buy low, sell high" for those who have trouble with things. This rule is not universal. Do not buy a 1973 Pinto because everyone else is afraid of it.
cute fuzzy bunny is offline   Reply With Quote
Old 09-20-2008, 12:10 PM   #10
Give me a museum and I'll fill it. (Picasso)
Give me a forum ...
mickeyd's Avatar
 
Join Date: Apr 2004
Location: South Texas~29N/98W
Posts: 5,880
Quote:
Originally Posted by Florida View Post
would you purchase Monday for maximum return as a long term investment.
Sounds to me like a market timing question Florida. I would invest on Monday only if that was part of my overall investment plan (IPS). Since it is not, I will just sleep in.
__________________
Part-Owner of Texas

Outside of a dog, a book is man's best friend. Inside of a dog, it's too dark to read. Groucho Marx

In dire need of: faster horses, younger woman, older whiskey, more money.
mickeyd is offline   Reply With Quote
Old 09-20-2008, 01:18 PM   #11
Recycles dryer sheets
 
Join Date: Jun 2007
Posts: 84
Quote:
Originally Posted by mickeyd View Post
Sounds to me like a market timing question Florida. I would invest on Monday only if that was part of my overall investment plan (IPS). Since it is not, I will just sleep in.
Time to DCA some sideline money.
__________________
Florida is offline   Reply With Quote
Old 09-20-2008, 03:57 PM   #12
Full time employment: Posting here.
 
Join Date: Oct 2003
Posts: 961
Quote:
Originally Posted by Florida View Post
would you purchase Monday for maximum return as a long term investment.
For max return I'd go with the SCV index fund or the EM index fund. Those are the most risky in my book so they may not deliver the highest return.
__________________
ats5g is offline   Reply With Quote
Old 09-20-2008, 08:17 PM   #13
Recycles dryer sheets
 
Join Date: Jul 2007
Posts: 116
I started my wife's 403b with one of the Targeted Date retirement funds. It's only down 8% since we started it last year!

Only down 8%!! Wow, and that seems good. It's probably one of my best performing funds.
__________________
Gworker is offline   Reply With Quote
Old 09-20-2008, 08:23 PM   #14
Administrator
W2R's Avatar
 
Join Date: Jan 2007
Location: New Orleans
Posts: 38,846
Another vote for Vanguard Total Stock Market Index, VTSMX, given a goal of long term gains.

https://personal.vanguard.com/us/JSP...NT#hist::tab=0
__________________
Already we are boldly launched upon the deep; but soon we shall be lost in its unshored, harbourless immensities.

- - H. Melville, 1851
W2R is offline   Reply With Quote
Old 09-21-2008, 02:15 PM   #15
Full time employment: Posting here.
 
Join Date: Apr 2005
Posts: 524
x * Total Stock Index +
y * Total International Index +
z * Total Bond Index

Pick x,y,z to suit your risk profile.
__________________
JB is offline   Reply With Quote
Old 09-21-2008, 02:36 PM   #16
Recycles dryer sheets
slouch's Avatar
 
Join Date: Aug 2008
Posts: 152
Quote:
Originally Posted by JB View Post
x * Total Stock Index +
y * Total International Index +
z * Total Bond Index

Pick x,y,z to suit your risk profile.
or buy something like VASGX


Top 10 Holdings
  1. Vanguard Total Stk Market Idx Fd Inc 49.94%
  2. Vanguard Asset Allocation 25.01%
  3. Vanguard Total Intl Stock Index 15.04%
  4. Vanguard Total Bond Market Index 10.01%
__________________
slouch is offline   Reply With Quote
Old 09-21-2008, 03:18 PM   #17
Give me a museum and I'll fill it. (Picasso)
Give me a forum ...
cute fuzzy bunny's Avatar
 
Join Date: Dec 2003
Location: Losing my whump
Posts: 22,697
You've gotta love a fund that can run from a 60/40 to an 85/15 between one day and the next.
__________________
Be fearful when others are greedy, and greedy when others are fearful. Just another form of "buy low, sell high" for those who have trouble with things. This rule is not universal. Do not buy a 1973 Pinto because everyone else is afraid of it.
cute fuzzy bunny is offline   Reply With Quote
Old 09-22-2008, 09:13 PM   #18
Recycles dryer sheets
slouch's Avatar
 
Join Date: Aug 2008
Posts: 152
Quote:
Originally Posted by cute fuzzy bunny View Post
You've gotta love a fund that can run from a 60/40 to an 85/15 between one day and the next.
Actually it would be 65/10/25 (stocks/bonds/cash) to 90/10/0, depending on the 25% in VAAPX.

https://personal.vanguard.com/us/JSP...NT#hist::tab=0
Quote:
Uses a computer model to evaluate expected returns and risks of stocks, bonds, and money market securities, and to recommend changes in allocation among them as expectations shift.
[from the Semiannual Report 03/31/2008, it is available from the link above]
Quote:
Still, although the Asset Allocation Fund can play an important role in your portfolio, it is not designed to be a core holding. When it is allocated 100% to stocks, you have no exposure to bonds. And the fund’s stock component, though diversified, is focused on larger U.S. companies, so it does not offer you exposure to smaller capitalization stocks or international stocks.
Also, when the fund includes a bond allocation, it typically invests only in long-term U.S. Treasuries. Therefore, the fund is best suited as just one part of a well-balanced portfolio that
features holdings across all parts of the stock and bond markets.
__________________
slouch is offline   Reply With Quote
Old 09-22-2008, 09:43 PM   #19
Give me a museum and I'll fill it. (Picasso)
Give me a forum ...
cute fuzzy bunny's Avatar
 
Join Date: Dec 2003
Location: Losing my whump
Posts: 22,697
It wouldnt go to a full 90% because each of the index funds holds ~2-3% in cash as a result of inflows and cash buffering for outflows.

The AA fund also RARELY goes into large amounts of cash and when it does allocate a portion to cash, its for a short period of time.
__________________
Be fearful when others are greedy, and greedy when others are fearful. Just another form of "buy low, sell high" for those who have trouble with things. This rule is not universal. Do not buy a 1973 Pinto because everyone else is afraid of it.
cute fuzzy bunny is offline   Reply With Quote
Old 09-23-2008, 01:06 PM   #20
Full time employment: Posting here.
 
Join Date: Apr 2005
Posts: 524
That Asset Allocation fund is something else. The current allocation is 100% stock -- which seems strange given the 1st goal and the current economic climate.

Goals are:
  • Seeks to maximize long-term total return (share price growth plus income) while incurring less stock market risk than a fund made up entirely of stocks.
  • Follows a tactical asset allocation strategy.
  • Uses a computer model to evaluate expected returns and risks of stocks, bonds, and money market securities, and to recommend changes in allocation among them as expectations shift.
Yet it's behind the TSM in YTD, 1, 3, 5, and 10 year performance. Maybe they need to work on their computer model.
__________________

__________________
JB is offline   Reply With Quote
Reply


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
Vanguard opens their Health Care Fund and Explorer fund to new $$$ thefed FIRE and Money 2 08-10-2008 08:30 PM
Vanguard US Growth Fund......... FinanceDude FIRE and Money 9 08-05-2008 11:26 PM
New Vanguard Fund REWahoo FIRE and Money 5 11-16-2006 02:56 PM
Vanguard- Wellsely Fund cube_rat FIRE and Money 17 07-05-2006 01:55 PM
Vanguard Fund Actions REWahoo FIRE and Money 1 04-20-2006 03:36 PM

 

 
All times are GMT -6. The time now is 01:35 AM.
 
Powered by vBulletin® Version 3.8.8 Beta 1
Copyright ©2000 - 2017, vBulletin Solutions, Inc.