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Old 04-06-2017, 02:43 AM
 
105,924 posts, read 107,900,219 times
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i think it is funny that most of vanguards managed funds beat their benchmarks .
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Old 04-06-2017, 11:18 AM
 
30,864 posts, read 36,789,988 times
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Quote:
Originally Posted by mathjak107 View Post
i think it is funny that most of vanguards managed funds beat their benchmarks .
Yeah, me too. Vanguard Wellington is only a few basis points more expensive than Vanguard Balanced Index.

The problem with active management is high expense ratios. If active funds have expense ratios only 10 or 20 basis points above those of index funds, as Vanguard's are (sometimes even less than that in the case of Wellesley Income & Wellington), their chances of beating those index funds are pretty good.
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Old 04-06-2017, 11:49 AM
 
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And it gets even better ER-wise if you have Admiral shares of Wellington, as the ER is .16%.
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Old 04-06-2017, 11:50 AM
 
Location: Mount Airy, Maryland
16,135 posts, read 10,274,529 times
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I own both Wellington and Wellesley and both are great funds, for the opening poster's money. I'll say it again, he can't afford to lose even $50 with this set up. Mom is conservative and not looking for huge returns, she just wants her son to hook her up to a relatively safe spot that pays more than the bank. The spells all bonds to me.
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Old 04-06-2017, 05:20 PM
 
105,924 posts, read 107,900,219 times
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Quote:
Originally Posted by mysticaltyger View Post
Yeah, me too. Vanguard Wellington is only a few basis points more expensive than Vanguard Balanced Index.

The problem with active management is high expense ratios. If active funds have expense ratios only 10 or 20 basis points above those of index funds, as Vanguard's are (sometimes even less than that in the case of Wellesley Income & Wellington), their chances of beating those index funds are pretty good.

i just posted in another thread about the fact you have to watch the overlap in index funds ,especially vanguard .

voo has many of the same stocks in vo and vb has many of the same stocks in vo so if you are trying to have a large cap -mid cap -small cap fund vanguard holds way to many of the same stocks between them .

on the other hand i-shares versions have no stock over lap .

VOO vs. VO = 229 overlapping (45% of VOO's holdings, 67% of VO's holdings)
VO vs. VB = 20 overlapping (6% of VO's holdings, 1% of VB's holdings)
VOO vs. VB = 28 overlapping s (6% of VOO's holdings, 2% of VB's holdings)

IVV vs. IJH = 0 overlapping
IJH vs. IJR = 0 overlapping
IVV vs. IJR = 0 overlapping
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Old 04-06-2017, 09:45 PM
 
Location: Big Apple
403 posts, read 360,931 times
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Super noob question .. but can I put the money in my account or should I make her own account?
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Old 04-06-2017, 09:58 PM
 
30,864 posts, read 36,789,988 times
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Quote:
Originally Posted by lottamoxie View Post
And it gets even better ER-wise if you have Admiral shares of Wellington, as the ER is .16%.
Yeah, that's awesome. And Wellesley Income's Admiral shares are only .15%.
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Old 04-06-2017, 10:01 PM
 
30,864 posts, read 36,789,988 times
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Quote:
Originally Posted by Oasiscakes View Post
Super noob question .. but can I put the money in my account or should I make her own account?
If it's her money, why would you put it in your name?
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Old 04-07-2017, 03:12 AM
 
Location: Mount Airy, Maryland
16,135 posts, read 10,274,529 times
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Yeah she needs her own account, unless you want to pay her taxes on dividends.
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Old 04-07-2017, 05:22 AM
 
Location: Pennsylvania
31,341 posts, read 14,115,892 times
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Quote:
Originally Posted by mathjak107 View Post
i just posted in another thread about the fact you have to watch the overlap in index funds ,especially vanguard .

voo has many of the same stocks in vo and vb has many of the same stocks in vo so if you are trying to have a large cap -mid cap -small cap fund vanguard holds way to many of the same stocks between them .

on the other hand i-shares versions have no stock over lap .

VOO vs. VO = 229 overlapping (45% of VOO's holdings, 67% of VO's holdings)
VO vs. VB = 20 overlapping (6% of VO's holdings, 1% of VB's holdings)
VOO vs. VB = 28 overlapping s (6% of VOO's holdings, 2% of VB's holdings)

IVV vs. IJH = 0 overlapping
IJH vs. IJR = 0 overlapping
IVV vs. IJR = 0 overlapping
Which is why in the long run, index funds are not only boring, but it little matters which ones you pick.
They are for the lazy.
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