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Dear Fellow Investor,
Do you own at least one Vanguard fund? Would you like to see your mutual fund portfolio grow faster? Want more income from your investments? Could you use better advice about minimizing your taxes?
With Vanguard, it’s possible to grow your portfolio handsomely over time. And earn a great income through dividends every month.
It’s also possible to lose money at Vanguard. And wind up with a meager nest egg. With over 180 Vanguard mutual funds and ETFs, it takes a seasoned expert to sort through it all and make the right choices, at the right time.
Even at a conservative fund company like Vanguard, you have a lot of decisions to make: For example, Vanguard has dozens of funds with the word “growth” in their names. Some of those funds have done well (or even great) in the past, but as Vanguard and its funds have gotten bigger, its growth managers have had to contend with running larger and less nimble funds. But even with that holding them back, some Vanguard funds will continue to outperform—those are the few growth funds you should own. And other types of funds have similar stories.
So, how do you choose winners consistently? What is the right type of bond fund to hold, and what stock funds should you stay away from? What are the smartest ways to minimize taxes on your investments?
Most of us don’t have the time to research every fact and figure of the world economy. You probably don’t have a burning desire to know all 180+ Vanguard funds inside and out…but I do. My name is Dan Wiener, founding editor of The Independent Adviser for Vanguard Investors members-only newsletter, and I’ve been doing this full-time for the last 28 years. My co-editor, Jeff DeMaso, and I make it our business to know everything we can about Vanguard to help protect your money and boost your returns.
Whether you handle your own Vanguard portfolio or just want to check up on what your investment manager is doing, our Independent Adviser for Vanguard Investors is your best tool.
What we will teach you could save you thousands of dollars. That’s because we’ll coach you on how to make better decisions about your Vanguard investments, day in and day out. Just think, you could have two of America’s top experts on mutual funds, especially Vanguard funds, helping you around the clock for less than $100. That’s exactly why 36,000 smart investors already subscribe!
We will remove the stress and aggravation of investing for you. We will help you significantly reduce the risk in your portfolio. As an Independent Adviser subscriber, you’ll learn why some of Vanguard’s most popular funds are riddled with risk, and why some are much better, much safer alternatives…
Have you ever wondered why a great-performing fund suddenly changed direction and dropped like a stone?
It could be that Vanguard switched the fund’s management team. The Vanguard Group won’t warn you about profit-killing danger like that. But I keep track of EVERYTHING going on at Vanguard, and give you advance warning. Way in advance, so you have plenty of time to make smart decisions.
Why? Because The Independent Adviser is just that—independent advice about Vanguard. I’m sometimes downright critical of what Vanguard is doing behind closed doors. (Keep reading and we’ll show you some great examples that can save you from stepping on a mutual fund land mine.)
I don’t rely on the gobbledygook Vanguard publishes in its brochures and on its website. I interview the players behind the scenes and dig for the truth…and I don’t get a cent from Vanguard, unlike a rating agency such as Morningstar. Those stars don’t mean a lot these days! If a fund closes at Vanguard and there’s a better alternative at another company, I will tell you.
We’ve made a number of smart moves, and they have paid off—again. Our Growth Portfolio is up 1,918% from inception through 2018. Even our lowest-risk Income Portfolio is up 870% since inception. And this is just the beginning. Right now, we’re buying great Vanguard funds that are poised to appreciate strongly in years to come.
If you’re new to The Independent Adviser service, in the rest of this report I’ll explain just how we’ve been so successful investing primarily in Vanguard funds.
You’re about to learn how we pick the best funds and ETFs among Vanguard’s 180+ products. How we completely avoid making costly mistakes. And the best ways to avoid unnecessary income tax.
You will begin discovering secrets of Vanguard investing that separate the “average” Vanguard customer from more successful investors.
Being a subscriber to The Independent Adviser for Vanguard Investors can give an enormous boost to your wealth, security, and peace of mind. On average, subscribers make 50%–100% more in total returns than the average Vanguard investor.
Let’s help you get a lot more growth and income from your own fund portfolio. First, let’s look at The Independent Adviser’s four model portfolios…and they’re not just “models,” because I invest a lot of my own money in these funds!
Our Growth Portfolio consistently beats the overall market year after year, but has historically carried less risk than investing in the 500 Index! This combination of funds gives you wide diversification and includes some dividend income. What’s in it? Find out instantly—online—when you subscribe to The Independent Adviser for Vanguard Investors. Click Here.
This portfolio is meant to match or beat the performance of the overall market, but with much less risk than investing in for example, Vanguard’s Total Stock Market Index. Excellent diversification and good monthly income.
Our Income Portfolio is designed for anyone who wants a high level of income and also opportunity for capital growth with very low risk—returns consistently beat the Total Bond Market Index. Excellent for anyone who is retired or semi-retired.
This is the perfect portfolio for anyone strongly interested in indexing. Since 1995, I’ve selected the very best index funds out of Vanguard’s dozens of choices, for maximum returns and diversification and minimal risk.
Needle in a Haystack: Vanguard alone has over 180 funds. Only 19 of these funds currently make it into our model portfolios.
How do we narrow the field down to Vanguard’s best of the best? We investigate the strength of each fund’s holdings: How sound are the underlying companies or bonds?
We measure each fund’s risk level in several precise ways—with a lot more accuracy than the simplistic risk bar graphs you see on Vanguard’s website.
Even among Vanguard’s index funds, there are born winners and repeat losers—and index funds that are poised to completely fall off a cliff… We’ll get to that in a moment. But first, you need to know one of my core principles of profitable investing:
Buy the manager, not just the fund. Over the last decade, 85% of large-cap actively managed funds underperformed the S&P 500 index. In other words, you could have just invested in the Vanguard 500 Index and called it a day, and you would have beaten the majority of Harvard-educated stock and bond pickers!
However, the top three best-performing funds in my model portfolios are NOT index funds, but are all ACTIVELY MANAGED Vanguard funds.
Why? Because Vanguard happens to have a few—just a few—superbly managed stock and bond funds.
Brilliant analysts who run a tight ship—I’ve known these managers personally for decades, and I often pick their brains in depth about what the future holds for the companies, bonds, and market sectors they invest in (I publish exclusive interviews with these superstar managers for your benefit in the monthly The Independent Adviser for Vanguard Investors newsletter).
The best of Vanguard’s managed funds can appreciate more in an upswing and lose less of a downswing. You won’t see this kind of profit with an index fund.
These long-term-winner funds, which you’ll find out about immediately as a new subscriber, are the #1 reason why our Growth Portfolio is up over 1,900%.
Great Insight: My subscribers and I make money the old fashioned way: We buy funds with proven management teams and winning strategies. We make adjustments as conditions change.
Well-informed timing can make the difference between a pretty good return on your investments, and a stellar return.
For example, I had my eye on a certain Vanguard bond fund for years. This fund pays a great monthly dividend and was conservatively managed—lower risk than similar funds at other companies, such as Fidelity and T. RowePrice.
But I didn’t say “buy.” I was patient—for years—and waited. Finally, all the numbers looked right. The yield spread was in our favor, by a wide margin, and economic indicators pointed to a period of relatively low risk for default with this kind of bond…
So, when the time was right, I alerted subscribers we were going to SELL our whole position in GNMA, which had done well for us for years, and BUY the new bond fund. Within just one month our new acquisition was up over 5% (GNMA was flat). And in just one year, our new fund had returned 17.7%. Not too shabby, considering GNMA returned only 3.9% and Total Bond Market returned only 4.9%.
My buy and sell recommendations are few. But when an excellent opportunity emerges, I make sure subscribers are alerted while there’s still time to act…great opportunities at Vanguard don’t last long!
Smart Diversification: Most people think “diversification” is a boring way to spread out risk. It is a great way to limit risk, if you do it correctly. And diversification is also a way to ensure higher returns—because with a well-diversified portfolio you will almost ALWAYS have something that is doing very, very well.
All four of our Model Portfolios are very well diversified. A good balance of large, medium and small cap companies. Growth and value. Domestic and some foreign. Stock funds, bond funds, broad indexes, and currently one “sector” fund that has done better than any other Vanguard sector fund over the last five years. Sign up for The Independent Adviser today to start boosting your own Vanguard profits.
One’s a superstar, the other’s a dog.
Can you guess which is which?
Are you ever confused about which of Vanguard’s dozens of growth funds are best? Mind-boggled by Vanguard’s many income fund choices?
A lot of Vanguard’s funds have very similar names. It doesn’t help that Vanguard’s website describes them like identical twins. But watch out! They’re not!
Without The Independent Adviser service it’s very easy to choose the WRONG fund, a sure loser instead of an assured winner. But as a subscriber to my service, you’ll always know the winners from the losers.
Here are just a few examples of Vanguard’s “Puzzling Pairs”…
Currently, it’s in my “Growth,” “Conservative Growth,”
and “Income” model portfolios.
Health Care is the ONLY Vanguard sector fund I’ve recommended for years now. The rest of Vanguard’s sector funds–for example, Energy and Real Estate Index–are too risky, too volatile, and take away rather than add diversification to your portfolio. Health Care is the only Vanguard sector fund that will keep you on track to become a Vanguard millionaire or multi-millionaire. This fund is low risk with consistent market-beating performance. Just look at these numbers:
Health Care was up an average of 9.8% for the last five years (including the bludgeoning the whole health care industry took in 2016), and 14.2% for the last 10 years. That’s a compounded total return of over 276% in just 10 years.
From 1984 to 2012, Health Care profited from having one of the very best health care managers ever, Wellington Management’s Ed Owens. Ed knew the health care industry inside out and consistently chose under-valued stocks that beat Wall Street’s expectations.
If you had invested just $3,000 when Mr. Owens started, it would have grown to a whopping $227,770 by the time he retired at the end of 2012. What’s even more exciting is that Ed spent years training a crackerjack replacement. In her first year as sole manager, Jean Hynes hit the ball out of the park, giving us an incredible 43.2% return.
But it’s not just about returns: Health Care has a low risk level, in terms of beta—actually lower than the Total Stock Market Index and 500 Index—and it adds a good measure of diversification to your portfolio, giving you ownership in growing industries such as biotech, pharmaceuticals, insurance companies, top hospitals, medical technology, and more…
Vanguard’s Health Care doubled in value very quickly after the last downturn. Could it double again? Get all the details when you join The Independent Adviser today.
You’ll find it in my “Growth” and
“Conservative Growth” model portfolios.
If I could only give you one piece of Vanguard investing advice, it would be this: While the average mutual fund stock picker doesn’t beat the index funds he’s competing against, there are some very big exceptions. Vanguard’s top active managers far outperform Vanguard’s best index funds. Know who these few managers are and you’re well on your way to becoming a Vanguard multi-millionaire.
This is especially true for growth funds. Look at the evidence: My favorite Vanguard growth fund is a very rare bird: aggressive performance (read: GREAT performance) combined with fairly low risk.
How does Vanguard do it? Answer: They don’t. This Vanguard fund is run by outside managers. I interview these fund managers regularly—they’re probably the best growth stock analysts of our generation. They scour the market for the few companies with rapid earnings growth potential trading at a reasonable price, and almost always strike gold.
This fund has been so popular that Vanguard had to close it—again. Guess who jumped in before it closed, though? Vanguard’s chairman. That’s right, even Chairman Bill McNabb finally figured out where the money was at Vanguard.
The good news is that these top-flight outside managers have a much smaller and nimbler growth fund (their own baby, totally independent of Vanguard) with even lower risk. That fund consistently ranks near the top of its category for 1-year, 3-year, and 5-year returns on Morningstar.
Don’t wait for the Vanguard fund to reopen. As soon as you try out my service, I’ll fill you in about the superstar non-Vanguard fund that’s a smarter play and still open to new investors. But it could close at any moment, so there’s no time to waste…
Read my special report right away and learn why the non-Vanguard fund is even better. Join The Independent Adviser today!
It’s currently in my “Growth,” “Conservative Growth,”
and “Income” model portfolios
I urged subscribers to buy this fund when everyone was saying U.S. stocks were the only game in town.
In fact, it was Vanguard’s best-performing fund for 2017.
In today’s what-have-you-done-for-me-lately world, the gains this fund has made over the last decade have soothed a lot of discomfort investors felt about owning foreign—if they owned them at all.
This fund is up of 3.5% for the last five years and 9.5% for the last 10 years. That’s a compounded total return of over 148.3% over the last 10 years.
Predicting when U.S. markets will outperform or trail foreign markets is a difficult game to play—markets are cyclical. We don’t try—we just stay diversified. And it works, as our track record shows. This fund is our secret weapon.
The fund is run by two expert teams who keep themselves carefully diversified, yet between them own less than a tenth of the stocks in the index their fund tracks—no huge portfolio bloat like you’ll find at some of Vanguard’s multi-managed messes (it’s got a rival that holds almost three times the number of stocks). And according to our calculations, over the last five years, this fund did the best job of all of Vanguard’s foreign funds at capturing upside in foreign markets—while barely losing any more than Vanguard’s benchmark Total International Stock Index during downturns.
Which fund is it? Should you buy—or start taking profits? Subscribe to The Independent Adviser for the answer!
I’ll save you from making big investment mistakes. Even Vanguard’s in-house financial planners recommend buying some of the company’s worst losers. It’s critical that you know which funds to avoid!
For example, Vanguard’s Global Capital Cycles, which was previously known as Precious Metals & Mining. This fund is 2018’s big loser, down 32.6%. At face value, a bull run in metals can make a fund like this look very attractive. But when the going gets rough, investors should watch out below, just as we saw this past year. The fund has been such a failure that it needed to undergo a facelift and name change that transformed it to essentially a new fund.
Over the last decade or so, including the great recession of 2008-2009, back when this fund was named Precious Metals & Mining, the fund averaged a -6.6% return per year. That’s pathetic, considering a very conservative fund such as the Intermediate-Term Investment-Grade bond fund returned an average of 5.1% per year during the same ten years.
As a subscriber to my service, you’ll know exactly which risky funds not to touch with a ten foot pole. You’ll completely avoid owning Vanguard’s born losers.
You may be holding other time bombs in your portfolio right now… for example, one of Vanguard’s lackluster LifeStrategy funds or laggard index funds that subtract rather than add diversification to your portfolio. Find out why you need to sell these as soon as possible in our special report, Vanguard Losers to Sell Now, yours free when you try our newsletter today!
Be sure to read the latest issue of our exclusive members-only newsletter to get the scoop on what’s going on now at Vanguard and our current ratings on all of Vanguard’s funds. I update this helpful information every month in the Performance Review section, along with fund risk and return information that Vanguard doesn’t give you. Plus, I’ve got great-performing Model Portfolios to help you build your own portfolio according to your investing goals. Finally, read or listen (in mp3 format) to my weekly Hotline every Thursday to get caught up on market news, happenings at Vanguard, best and worst performers, and more. Join us today and get immediate access to everything I’ve mentioned and BUY or SELL actions to take!
This is one of your biggest recurring decisions as a Vanguard investor: Should I buy the index fund or the actively managed fund?
Every time we get to this crossroad, I will point you in the right direction. Deciding correctly can make a huge difference to your wealth over time. The main thing you need to know is that not all index funds are created equal. Some are seriously risky, others rock-solid.
Excellent Example: "Value" funds. You might be thinking about investing in say, the Value Index. That would have been a BIG mistake during the ten years ended December 31, 2015.
Why? While the Value Index was UP only 108%, a smaller Vanguard fund with a similar name, Selected Value (one of my favorite actively managed funds), was up more: 113%.
As a subscriber to my Independent Adviser service, you would have known to buy the less-familiar Selected Value, not Value Index. You would have made money, not lost a great opportunity.
You would have known that the Value Index was tracking an index that was weighted too heavily with risky financial stocks, especially REITs. And you would have known that Selected Value is actively managed by one of the best teams of value stock pickers in the business. Yes, Value Index did well but Selected Value did even better.
We sold our stake in Selected Value in 2016 after 17 years of owning it, after Vanguard started meddling with the management formula, as they often do (and by the way, you’d normally have to look into SEC filings or the fine print on Vanguard’s website to find out changes lke that). And we did choose an index this time around…but not Value Index.
You should subscribe to The Independent Adviser if you always want to be clear when to index and when there’s a much better choice…and to find out the name of the fund we traded into from Selected Value in 2016.
One of the best ways to make money is to avoid losing it. As a subscriber to The Independent Adviser, we will coach you on exactly how to avoid the costly mistakes and land mines that can hurt anyone’s fund portfolio…anyone who doesn’t know better.
In our monthly Independent Adviser newsletter and weekly hotline, you’ll learn…
I hope I’ve proven that with mutual fund investing, it really pays to have an expert adviser on your side.
People who try The Independent Adviser service tend to stay for many, many years. That’s because they know the advice Jeff and I provide has generated more wealth than they could have achieved on their own.
Our subscribers tell us they like knowing they’re invested in the funds with the strongest management teams. This is very difficult to figure out on your own. It’s our specialty as an independent investigators.
Our subscribers also enjoy peace of mind knowing they’ve avoided investing a single penny in loser funds…even if some of those funds are “wildly popular” now…because the trendy funds of today can be in serious trouble tomorrow. Our subscribers aren’t willing to follow the herd and gamble with their hard-earned money—they want to know what’s probably going to happen—in advance.
Please—for your sake—do not delay. Sign up for your risk-free trial subscription to The Independent Adviser and start putting my strategy to work today.
Look up ANY Vanguard mutual fund or ETF you’re interested in and discover the inside story Vanguard doesn’t tell you on their web site!
You’ll instantly have:
Please join us for as little as $99.95. As soon as you open the current issue of the newsletter, you will discover important insider information about the funds you already own, or may be thinking about. You’ll immediately find out which funds to definitely go ahead and buy, and which you should turn and run from, and exactly why. You will be very surprised to learn which are which.
In the special reports I’ll send you (worth up to $179), you’ll learn all the important secrets to making more money with Vanguard and other companies’ funds. Smart ways to reduce your tax burden. And how to enjoy a larger income from your investments—with lower risk.
And this is just the beginning.
You will make and save more money with The Independent Adviser service, or it’s FREE.
That’s correct. Please try The Independent Adviser with no obligation at all.
As soon as you subscribe, you can immediately see what’s in the four model portfolios, including the Growth Model that’s making more than TRIPLE as much profit since inception as the typical Vanguard investor.
I urge you to compare the funds I recommend to the funds you own, as soon as possible!
Plus, you’ll instantly get a wealth of tips and advice that will not only dramatically improve your investment profits, but also save you a bundle in investing mistakes.
If you change your mind for ANY REASON within 30-days, you’ll promptly get a full refund. PLUS, you can keep all the reports and books worth up to $179, free of charge.
I’m that confident you’ll be very pleased with our Independent Adviser service.
Wishing you a prosperous investing future,
Daniel P. Wiener
Editor, The Independent Adviser for Vanguard Investors
P.S. Your free copy of the 2019 Independent Guide to the Vanguard Funds is alone worth $89.95 and is yours when you join us for a two-year membership. You’ll find this 300+ page book incredibly valuable.