December 18, 2014

To Cuba (and Russia and North Korea) With Love

It was steady as she goes in Washington. All eyes and ears were on yesterday's Fed statement and press conference, and Janet Yellen didn't disappoint. First off, with the Wall Street Journal having floated a trial balloon a week or so ago about whether the Fed would drop the 'considerable time' language when referring to the timing of its first rate hike, it was fascinating to see how the Fed massaged that one. It introduced the word 'patient,' as in, 'the Committee judges that it can be patient in beginning to normalize' interest rates. Then it went on to say that this was consistent with previous statements that it would continue to hold the fed funds rate at 0% to 0.25% for a 'considerable time.' Read More »

December 4, 2014

Zero Down Sale on Market Neutral

Now, I don't want you jumping for the keyboard and logging into to trade into this one, but Vanguard has lowered the minimum on its Market Neutral fund to $0. Yes, that's right, $0. But that's only for investors working with financial advisers because, as Vanguard puts it, 'given the distinctive characteristics of the fund … [it's] not appropriate for retail investors broadly.' Hence the $250,000 minimum remains in place for them. Read More »

December 2014 PDF

Lo to No Volatility

If there's one thing I got wrong this year, it was my sense that stock investors were headed for increasing volatility after years of calm. Consider November: The Dow Jones Industrial Average hit no fewer than 12 all-time highs in just 19 trading days (the S&P 500 index did the same). But those highs came on slimmer and slimmer gains. On all but three days, the Dow gained 0.23% or less to reach a new peak. Heck, on the final day of the month the Dow hit a high on just a 0.49-point rise. This doesn't mean the market is necessarily topping out, but it could be interpreted to mean that it isn't wild-eyed optimists driving the indexes higher and higher. Read More »

Most Recent Forum Threads
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Re: Basic Admiral Shares Question

butwait (12-20-2014) wrote: Tom is right. Vanguard Health Care Fund Investor Shares (VGHCX) $234.41 - $18.523 - 7.9% Vanguard Health Care Fund Admiral Shares (VGHAX) $98.92 - $7.858 - 7.9% Observation: A good way to envision this is think of VG having a large fund or room,... Read More »


Re: OT: Humor for your day...

butwait (12-20-2014) wrote: Nero's most recent business idea, needed more time in the incubator. Read More »


Re: Basic Admiral Shares Question

tomcat50 (12-20-2014) wrote: I believe if you compare distributions with the NAV of each fund, you will see more similarity in distributions based on a % of NAV. Read More »

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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 November YTD
Growth 2.5% 11.0%
Conservative Growth 2.3% 11.2%
Income 2.1% 11.5%
Growth Index 2.2% 10.4%
The average
Vanguard investor
1.5% 8.5%
Past Performance »