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Questions tagged [vanguard]

For questions relating to Vanguard mutual funds, ETF's, IRA's, and other financial products.

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24
votes
4answers
5k views

What is the difference between these two S&P 500 ETF?

I wanted to invest in the Vanguard S&P 500 ETF which has the ISIN code US9229083632 However I just discovered it is not available in my country. As an alternative I am considering investing in ...
13
votes
1answer
14k views

What are Vanguard's Admiral Shares?

What are Vanguard's Admiral Shares? I recently heard about them, and I'm not sure how they differ from the normal shares of their mutual funds I have.
12
votes
2answers
2k views

Roth IRA: Vanguard vs Free Advisor's Mutual Fund

Background: I recently turned 25 and became applicable to invest into my employer's 401K. Due to no matching, I have 3% allocated in as a supplemental retirement fund. Currently single, rent (no ...
10
votes
1answer
1k views

My first 401k, starting late-ish - should I stick with target date? [closed]

I just got my first "big boy" job at the tender age of... 34, after a long time in academia and a startup stint that worked out pretty well (startup got acquired by public company) - so now it's the ...
9
votes
5answers
2k views

How can I invest in an index fund but screen out (remove) certain categories of socially irresponsible investments?

I currently invest in index funds (VFINX and FUSEX) but would like to negatively screen out certain categories of investments for the purposes of "Socially responsible investing". I don't have any ...
9
votes
2answers
2k views

Are there fees or penalties for holding less than $10K in a Vanguard Admiral Shares fund?

I currently have a large sum of cash in a "Rewards Account" at my credit union. The interest rate is at 2.75%. It seems to drop every year. It started out at over 4%. Basically, I am looking to find a ...
9
votes
2answers
670 views

Growth of unrealized gains in tax-managed index funds

Tax-managed index funds defer capital-gains distributions by, among other things, offsetting capital gains with losses and deviating from their underlying indexes to avoid having to sell appreciated ...
8
votes
4answers
363 views

Is my first 401(k) fund allocation reasonable, and with respect to fees?

I just started my first job after school and am now being enrolled in my company's 401k plan, which is handled by Vanguard. By default, I was put into the Target Retirement 2050 Trust II fund, which ...
8
votes
2answers
1k views

How does Vanguard determine the optimal asset allocation for their Target Retirement Funds?

Until 25 years before retirement, Vanguard Target Retirement Funds all have an identical asset allocation of 63% U.S. stocks, 27% international stocks, 8% U.S. bonds, and 2% international bonds. I ...
8
votes
1answer
352 views

Opened a Vanguard brokerage account. What do I need to keep track of for next year's taxes?

I know opening the account will not impact me for this tax season, but next year since I opened the brokerage account taxes will be a little different. What do I need to keep track of while I'm ...
7
votes
3answers
7k views

Retirement Funds: Betterment vs Vanguard Life strategy vs Target Retirement

I'm a 20 something grad student and would like to open a hands off retirement account with beta exposure to the market and would make monthly contributions. I'm fairly illiterate when it comes to ...
7
votes
2answers
464 views

Pros/cons of replicating a “fund of funds” with its component funds in my IRA?

I'm interested in investing in the Vanguard Target Retirement Income Fund in my IRA. That fund is made up of 5 funds: Total Bond Market II Index Fund Investor Shares (very similar to the Total Bond ...
7
votes
5answers
707 views

How to invest a $1000 in an index mutual fund?

My pre-teen daughter saved up a $1000 and I thought it might teach her how finances work if we invested it in a mutual fund. Specifically in an index fund like S&P 500 or some such. The problem ...
7
votes
3answers
293 views

What do mutual funds do with the dividends that the securities that they contain give out?

For example, Vanguard Dividend funds have a lot of stocks that give out dividends. Are there any regulatory requirements for Vanguard to distribute the fund? Can they decide to do whatever they want ...
7
votes
2answers
834 views

What is cheaper annually — buying shares in a Vanguard index fund or buying shares of an ETF?

I’m having some difficulty figuring out which route would minimize the annual fees I pay. Vanguard offers an index fund that tracks the S&P 500 with an expense ratio of 0.25%. Then, there’s this ...
7
votes
1answer
314 views

What is the least-bad way to invest a Simple IRA with heavy fees around every corner?

Given the following situation: an employer-offered "Simple IRA" run by a major brokerage with 1% gross pay matching; No near-future feasible opportunity to invest the Simple IRA contribution in a no-...
6
votes
3answers
797 views

Understanding the past growth of an ETF

I'm trying to understand the grow of an ETF (Vanguard VOO) over the past year. I have checked both the Vanguard web page and Google, for the same ETF, and they show massive different growths. In ...
6
votes
1answer
1k views

Why does Voya use Vanguard fund names with different prices and no ticker symbols?

I have a Voya 401k account from employer. I've been investing in four funds, three of which (I thought) are "Vanguard" funds. The names are identical to Vanguard funds, but they aren't the same at ...
6
votes
1answer
478 views

Why buy mutual funds when equivalent ETFs exist?

Vanguard has ETF versions of several of its mutual funds. I don't know if they are are 100% equivalent but the Vanguard site itself to them from the mutual fund pages. Why would someone chose to ...
6
votes
2answers
1k views

Roth IRA - Vanguard or Fidelity? If a college student had to pick one?

These are the only two options I will consider at this point, since I was in a very indecisive state, but have managed to narrow it down to these two. It seems that mostly everybody is recommending ...
5
votes
3answers
211 views

Vanguard Mutual Funds — Diversification vs Share Class

Vanguard Admiral shares typically require a minimum investment of $10,000, whereas the Investor shares typically require $3,000. For the lower expense ratio funds, the former have expense ratios of ...
5
votes
3answers
1k views

How to diversify IRA portfolio given fund minimum investments and IRA contribution limits?

I recently opened a Roth IRA. Most of the funds at the fund company (Vanguard) have a minimum initial investment of $3000. The IRA contribution limit is $5500. This means I can only buy into one ...
5
votes
4answers
424 views

Is there any reason to choose my bank's index fund over Vanguard?

I'm planning on transferring some of the money in my RRSP into an index fund. My bank (CIBC), has a balanced index fund that has 1.2% management expense ratio (https://www.cibc.com/en/personal-banking/...
5
votes
2answers
415 views

Why is a Vanguard fund based on U.S. treasury inflation-protected securities (TIPS) returning more than the rate of inflation?

VIPSX says it has returns of >= 5% over 5 years and almost 9% in the last year. It appears to be based on U.S. inflation-protected securities. However, U.S. treasuries are returning near zero, and ...
5
votes
2answers
303 views

How are Vanguard's ETF's returns higher than the index's growth?

I tried comparing Vanguard's ETF returns to the index the ETF is tracking and it looks like their ETF highly outperformed the index? The S&P/ASX 300 index only grew less than 29% total in 5 years,...
5
votes
3answers
426 views

Why would someone pick iShare's Russell 2000 ETF over Vanguard's?

There are two ETFs that both track the Russell 2000 (at least according to everything I've read), which are IWM (iShares) VTWO (Vanguard) The Vanguard ETF has a lower expense ratio. As such, could ...
5
votes
3answers
1k views

Are there any consequences for investing in Vanguard's Admiral Shares funds instead of ETF's in a Roth IRA?

I have a Roth IRA with Vanguard, and I saw this question: What is the difference between shares and ETF? about the differences between Admiral Share funds and ETFs. I've also seen stuff talking about ...
5
votes
2answers
3k views

Investing in REITs - VGSIX vs VNQ

I recently began investing and planning for retirement. I opened up a Roth IRA through Vanguard and bought about $2,000 of Vanguard Target Retirement 2045 Fund (VTIVX). I'd like to invest in real ...
5
votes
3answers
277 views

Is there any evidence that “growth”-style indexes and growth ETFs outperform their respective base indexes?

For example Vanguard has the Vanguard S&P 500 ETF and the Vanguard S&P 500 Growth ETF. Just looking at the returns, it looks like the growth ETF has outperformed the S&P 500 ETF: ... but ...
5
votes
1answer
1k views

How are Vanguard directors chosen?

According to some on-line sources (including Wikipedia) Vanguard is owned by its member funds. Furthermore, it is run by its Board of Directors. However, I could not find anything on Vanguard's web ...
5
votes
2answers
1k views

Vanguard retirement portfolio suggestions for my 403(b)?

I'm 28 years old and going to start my 403(b) retirement investment. My investment contributions will be 5% by me and 5% by my employer. I'm planning to invest 8% in pretax and 2% in Roth. The ...
5
votes
1answer
588 views

Good Index funds in EU precisely in the Hungary area?

U.S citizens can easily purchase Vanguard index funds to invest and they are the most recommended. Are there any similar options for EU citizens, mainly Hungary? I am only getting familiar with the ...
5
votes
2answers
497 views

Where do expense ratios show up on my statement?

This answer describes the lowered expense ratios of Vanguard admiral shares compared to Vanguard investor-class shares. How do I tell from my statements that I am saving money through the lowered ...
4
votes
2answers
1k views

At Vanguard, can I transfer shares from regular investment account to a Roth IRA?

Due to a misunderstanding of Roth IRA's benefits, several years back I opened a regular investment account at Vanguard (i.e. non-tax-advantaged). Now that I understand Roth IRA, I want to open one. ...
4
votes
1answer
472 views

Vanguard UK lets you invest in the S&P 500 index fund. What about my taxes?

Vanguard UK lets you invest in the S&P 500 index fund via an ISA (Independent Savings Fund). I understand that an ISA in the UK shields you from any tax on your profits from investments (up to a ...
4
votes
2answers
999 views

401k rollover and vested balance

I have a (fidelity) 401k with company A. It has a balance of $X, of which $Y has been vested. I was laid off of company A three months ago. Yet, the balance still shows up as $X (with $Y vested). I'd ...
4
votes
2answers
102 views

Question about Tax Information from a Prospectus

I've been studying the prospectus for a Vanguard Index fund that I'm invested in, and I'm confused as to what percentage and what taxes I will end up paying. When the prospectus's tax information says ...
4
votes
1answer
6k views

Where can I find historic performance data on Barclays Aggregate Canadian Bond Index?

I'm looking at the Vanguard Canadian Aggregate Bond Index ETF (VAB), and it says it replicates the "Barclays Capital Global Aggregate Canadian Float Adjusted Bond Index". Unfortunately VAB is less ...
4
votes
1answer
612 views

What is the difference between shares and ETF?

For example, I see that this: Vanguard FTSE All-World ex-US Index Fund Investor Shares (VFWIX) is Also available as an ETF and at a lower cost as an Admiral™ Shares mutual fund What is the ...
4
votes
1answer
220 views

Is there a total stock market index fund in India, like the one offered by Vanguard in the US?

I have been reading 'The simple path to wealth' by Jim Collins which advances the indexing philosophy to investment. The issue is that the book is written from the perspective of a US citizen, and ...
4
votes
1answer
529 views

How do I track investment performance in Quicken across rollovers?

I use Quicken to track investments. I'd like to track performance. Here is a situation that feels wrong: I buy stock S for $10/share. I hold for 5 years. I sell S at $20/share and buy S2 for $20/...
4
votes
1answer
97 views

As a Brit, how do I invest in US ETFs

Specifically, I'm interested in the Vanguard High Dividend Yield ETF. I actually live in China and don't plan on returning to the UK for the foreseeable future. Although I have some UK investments, I'...
3
votes
3answers
2k views

Vanguard Target Year retirement funds track record

Some personal finance "gurus" recommend funds with a track record of at least 10 years. Both my current and previous employer default to Vanguard target year retirement funds. These funds from 2015 ...
3
votes
3answers
517 views

Does dollar cost averaging apply when moving investments between fund families?

We'll likely be moving ~$100,000 (two Roth IRAs, about 80k/20k split) from a mix of Nationwide funds to a combination of Vanguard whole-market stock and bond index funds (details below). All else ...
3
votes
2answers
4k views

What happens when you withdraw money from a Vanguard mutual fund?

Say you have $10000 in VTWSX with Vanguard and wish to withdraw $1000 of it. What actually happens when you place this order? Because it's not instantaneous - the shares are sold over the next two ...
3
votes
2answers
2k views

Does Vanguard ensure that employees do not overcontribute to their 401(k)?

I read on http://www.doughroller.net/retirement-planning/happens-contribute-401k/: Most of us won’t have to worry about contributing more than the annual limit. Even if you have enough money ...
3
votes
1answer
642 views

Can you lose money in Vanguard money market settlement fund?

Same as the title: Can you lose money in Vanguard money market settlement fund?
3
votes
2answers
670 views

How do I properly pull my funds from one account and invest in another when I do not have a broker?

This is a follow-up to my previous question: My investment account is increasingly and significantly underperforming vs. the S&P 500. What should I do? Much of the advice I received pertained to ...
3
votes
1answer
275 views

How can passive index funds be sustainable at large scale? Won't they affect the indexes they are tracking?

Index funds seem to be gaining popularity these days. So if this trend continues, a sizable amount of investment money might end up in these passive funds. When this happens, won't there be a ...
3
votes
5answers
2k views

Suitable Vanguard funds for a short-term goal (1-2 years)

I am looking to save for a down-payment for a house in a period of 1 to 2 years. So I want to open a brokerage account, start with $3K, and put $1K on a monthly basis. Then, after one or two years, I ...