July 28, 2014

Could a Tax Lawsuit Against Vanguard Change the Mutual Fund Industry Structure?

Filed by a former Associate Counsel and tax attorney who worked for Vanguard for just under five years, a recent suit makes some pretty major allegations about the firm's 'at-cost' structure.

Since I'm not a tax attorney, I can't debate the merits of the lawsuit or some of the allegations presented in it. But from a broader perspective, this assault on Vanguard's 'at cost' operating principle could, if successfully challenged, have seismic implications for the fund industry and possibly put competitors on a more level playing field with Vanguard as far as costs are concerned. Read More »

Hotline
July 24, 2014

Large Is Beautiful

In the category of 'what goes up must come down,' it's been a see-saw month in the stock markets at home, as large-cap indexes like the Dow and S&P have risen and small- and mid-caps have fallen—though some large-, mid- and small-cap indexes have hit record highs this month. The Dow and S&P indexes are up 3.1% and 7.5% for the year through Wednesday, and the S&P mid- and small-cap indexes are up 5.3% and 0.1%. Read More »

Issue
July 2014 PDF

Summertime: Is the Livin' Easy?

One thing we don't want in our portfolios, though, is bloat. It's just too bad for shareholders of Explorer that Vanguard doesn't understand that. I've got the full story on the recent addition of an eighth manager to the fund, and Vanguard's obfuscation of the matter, in the issue. With a formula focused largely on assets under management rather than performance, you can decide for yourself whether Vanguard's top executives earned their latest Partnership Plan pay hike. Just don't take their multimanagement PR, or Bill McNabb's comments in the semiannual report for Morgan Growth, at face value. Read More »

Most Recent Forum Threads
View More »
5
Reply

Re: Bailed on Dividend Growth

bruno (07-30-2014) wrote: Kevin I was holding both VDIGX and VEIPX and I also sold VDIGX. If you compare the two on the "GROWTH OF $10,000" chart on Vanguard's web site, VEIPX outperforms VDIGX for the 1, 3, and 5 year periods. VDIGX wins after 10 years, but only by a nose: VDIGX... Read More »

5
Reply

Re: Bailed on Dividend Growth

butwait (07-30-2014) wrote: FWIW perusal Observations: Dan has Dividend Growth (or Dividend Appreciation ETF) asset allocations between 20% to 25% in his hypothetical model portfolios. Div Growth & 500 Index correlates 0.96, while Div Growth & PRIMECAP Core correlates 0.94. Dan has a "buy" recommendation on all three funds. Barcharts.com has VDIGX... Read More »

2
Reply

Re: Most uncomfortable topic in investing.....

butwait (07-30-2014) wrote: TB thanks for sharing. Several good common sense diversification ideas... Many investors faced with the prospect of turning over their portfolio to a third party feel an obligation to give the entirety of their earthly wealth to only one individual. Generally, one of the reasons why someone becomes a self-directed investor in... Read More »

Access the Independent Guide to the Vanguard Funds Now
Read Online

"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 »

ADVERTISEMENT
Vanguard Funds Correlation
What's This?
Model Portfolio Performance
Models June YTD
Growth 2.9% 6.9%
Conservative Growth 2.4% 6.8%
Income 1.3% 6.2%
Growth Index 3.0% 6.7%
The average
Vanguard investor
1.7% 6.0%
Past Performance »
ADVERTISEMENT
ADVERTISEMENT