January 22, 2015

Europe Kicks Stimulus into Higher Gear

Those who said that the Fed's three quantitative easing programs would spur massive inflation are probably back in their bunkers about now, given the impact falling oil prices have had on inflation. At year-end, the CPI, or 'headline' inflation number, was so low, at 0.7%, that the deflation word was being uttered from time to time. But since we all know that energy costs are a big part of that equation, let's look at core CPI, which is running at 1.6%, about the level it's been at for two years or so (excluding a couple of minor spikes, including a 2.0% reading in mid-2014). Inflation just isn't an issue right now, which, of course, is one reason we've seen Treasury yields looking for new recent lows. Read More »

January 12, 2015

Vanguard's Tax-Equivalent Fantasy Yields

The introduction of a new, low-cost municipal bond index fund, like the recent filing for Tax-Exempt Bond Index, is a great time to crow that yields are always higher when costs are lower. And most of the time they are. But there's higher yields, and then there's Vanguard's calculations of those yields—or rather, Vanguard's calculation of the taxable-equivalent yields that its tax-exempt bond funds offer. Read More »

January 2015 PDF

Red Scare

Whether it was the North Korean hack of Sony Pictures, the rebuilding of bridges with Cuba, or Russia's plunging ruble and rising rhetoric, not to mention large losses in the oil markets, red was the color of the month. Early on, it appeared that despite a stellar 2014, the U.S. stock market might actually end the year on a negative note. After Fed Chair Janet Yellen came to the rescue with a commitment to keep interest rates low well into 2015, though, we saw some of the strongest buying Wall Street has had in years, and the market lost a fraction for the month. Read More »

Most Recent Forum Threads
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Re: Any thoughts on why the Vanguard Select Fund this year is performing so poorly

tmfmishap (01-27-2015) wrote: And by the way, I was comparing VASVX, IWS, VIMSX, IVOO, IVOG, IVOV, and VOT. VOT also looks pretty good but IWS beats in every period. Read More »


Re: Any thoughts on why the Vanguard Select Fund this year is performing so poorly

tmfmishap (01-27-2015) wrote: Thanks for the suggestion. Based on Morningstar, IWS (iShares Russell Mid-Cap Value ETF) beats all of the funds mentioned above across 1, 3, and 5 year periods. VIMSX is slightly better than IWS over 10 years. VASVX lags IWS by a decent margin over 1, 3, and 5 years. IWS... Read More »


Re: Any thoughts on why the Vanguard Select Fund this year is performing so poorly

dark_horse (01-27-2015) wrote: Be careful when analyzing the performance of groups of funds on Google Finance. Unless there's another page that I'm unaware of, analyzing them by price alone is misleading, due to dividends etc. does better job. Just make sure you start with their stock $10,000 investment, and lay the other... Read More »

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"America's leading expert on investing in Vanguard funds"

Daniel P. Wiener is editor of The Independent Adviser for Vanguard Investors, a monthly newsletter that keeps abreast of recent developments at Vanguard, and the annual FFSA Independent Guide to the Vanguard Funds. Through his newsletter and guide book, Dan helps tens of thousands of Vanguard investors choose wisely among more than 100 Vanguard mutual funds. The Adviser is a five-time winner of the Newsletter Publishers Foundation's Editorial Excellence Award. View More »

Vanguard Funds Correlation
What's This?
Model Portfolio Performance
Models December 2014
Growth -0.1% 10.9%
Conservative Growth -0.3% 10.8%
Income -0.4% 11.1%
Growth Index 0.2% 10.6%
The average
Vanguard investor
-0.5% 8.0%
Past Performance »