From reading the threads, I've noticed that certain funds seem popular and/or mentioned frequently. I've recently moved a significant portion of my investments to Vanguard (essentially took my old 401(k) and moved it into a Vanguard IRA) and now am questioning some of my fund selections.
Bond fund - I saw recently a lot of talk about VBMFX (Total Bond Market Index). Is this what a lot of people like for a diversified bond allocation and, if so, what is it you like about it? I happened to select VBIIX (Intermediate-Term Bond Index). In comparing the two, I see that VBMFX has shorter average maturity and average duration - maybe that will help keep prices from falling as much if/when interest rates eventually rise? Also VBMFX has 3000+ bonds whereas VBIIX has 1000+ bonds so VBMFX is better diversified. Are there other considerations here?
Wellesley (VWINX) - Is this some sort of holy grail of mutual funds? Seriously, I see a lot of talk about this one and am just wondering why. I found that it is a balanced fund of about 60% bonds/40% stocks.
I'm just looking for honest opinions of what makes some of the funds more popular and what factors into your decisions. I know more about stocks in general than bonds, so figure it's time to ramp up my knowledge of bonds and bond funds. Thanks for any input.
Bond fund - I saw recently a lot of talk about VBMFX (Total Bond Market Index). Is this what a lot of people like for a diversified bond allocation and, if so, what is it you like about it? I happened to select VBIIX (Intermediate-Term Bond Index). In comparing the two, I see that VBMFX has shorter average maturity and average duration - maybe that will help keep prices from falling as much if/when interest rates eventually rise? Also VBMFX has 3000+ bonds whereas VBIIX has 1000+ bonds so VBMFX is better diversified. Are there other considerations here?
Wellesley (VWINX) - Is this some sort of holy grail of mutual funds? Seriously, I see a lot of talk about this one and am just wondering why. I found that it is a balanced fund of about 60% bonds/40% stocks.
I'm just looking for honest opinions of what makes some of the funds more popular and what factors into your decisions. I know more about stocks in general than bonds, so figure it's time to ramp up my knowledge of bonds and bond funds. Thanks for any input.