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4 Vanguard Funds For The 'Set It And Forget It' Investor
Well, those are certainly nice funds. "Best Balanced Vanguard Mutual Funds – Vanguard Star (VGSTX)"
Vanguard Star is one of the very first mutual funds I ever purchased. I had no idea what mutual fund to purchase, and decided on Star, which was a sort of legendary fund even at that time. I opened the account with $500. Have held this fund all this time, and never worried about it.....have never been disappointed.
I think the author needed to include the Vanguard Wellington Fund in the article. If he wanted an article with only 4 funds, he could have removed the Managed Payout Fund, which might be a bit untested, and certainly can't match the others mentioned.
@rjb112:(Because It's Closed To New Investors): "One of the first funds in Vanguard’s lineup, Vanguard Wellington (VWELX[6]), also is among the best. Not surprisingly, the investment community agrees — this outstanding and consistent performance has attracted more than $26 billion in assets.
However, that’s a size large enough to force the management team, in place for 12 years, to close the fund to new investors." Regards, Ted
"The fund was created in 1985. In 1987 the New York Times noted: [2]
In the past two years, a number of firms have revived the 1960's fund-of-funds approach, in which a money manager invests in a variety of mutual funds, rather than directly in stocks or bonds... The Vanguard Group was one of the first organizations to revive the fund-of-funds concept when it offered its STAR Fund, which invests in shares of Vanguard's other mutual funds.
According to posters in the Bogleheads forum, STAR is an acronym for "Special Tax-Advantaged Retirement," although it was never limited to retirement accounts; it is one of a group of seven Vanguard funds each of which is formally a "portfolio" within a single "trust," an arcane fact of no practical importance"
VPGDX, the managed payout fund, may not be a slam dunk, but one of its constituent funds may be worth a look: the new Global Minimum Volatility Fund, VMVFX, which looks to be well diversified across geography, sector, and market cap, and so far at least, seems to be living up to its mandate.
I believe VWELX is closed to third party financial intermediaries only. Interested parties can still buy the fund directly through Vanguard. See the link below.
Supplement to the Prospectus and Summary Prospectus
Important Note Regarding Vanguard Wellington Fund
Vanguard Wellington Fund will be closed to all prospective financial advisory, institutional, and intermediary clients (other than clients who invest through a Vanguard brokerage account).
The Fund will remain closed until further notice and there is no specific time frame for when the Fund will reopen. During the Fund’s closed period, all current shareholders may continue to purchase, exchange, or redeem shares of the Fund online, by telephone, or by mail.
Well, for what it's worth, and IM<HO, it is open in many retirement accounts. I just started a new 401k with my new employer and Wellington is where I'm putting the money. Principal is the financial institution handling the 401k.
Comments
"Best Balanced Vanguard Mutual Funds – Vanguard Star (VGSTX)"
Vanguard Star is one of the very first mutual funds I ever purchased. I had no idea what mutual fund to purchase, and decided on Star, which was a sort of legendary fund even at that time.
I opened the account with $500.
Have held this fund all this time, and never worried about it.....have never been disappointed.
I think the author needed to include the Vanguard Wellington Fund in the article. If he wanted an article with only 4 funds, he could have removed the Managed Payout Fund, which might be a bit untested, and certainly can't match the others mentioned.
However, that’s a size large enough to force the management team, in place for 12 years, to close the fund to new investors."
Regards,
Ted
It is compared against the STAR composite index:
"The fund was created in 1985. In 1987 the New York Times noted: [2]
In the past two years, a number of firms have revived the 1960's fund-of-funds approach, in which a money manager invests in a variety of mutual funds, rather than directly in stocks or bonds... The Vanguard Group was one of the first organizations to revive the fund-of-funds concept when it offered its STAR Fund, which invests in shares of Vanguard's other mutual funds.
According to posters in the Bogleheads forum, STAR is an acronym for "Special Tax-Advantaged Retirement," although it was never limited to retirement accounts; it is one of a group of seven Vanguard funds each of which is formally a "portfolio" within a single "trust," an arcane fact of no practical importance"
Another unimportant fact...
Regards,
Ted
http://portfolios.morningstar.com/fund/holdings?t=VGSTX®ion=usa&culture=en-US
http://www.sec.gov/Archives/edgar/data/105563/000093247113005690/ps2102201355x85.htm
Also, the Vanguard web site does not list it as being a "closed" fund.
Closed to New Investors 02/28/2013 Yes
Regards,
Ted
http://www.bloomberg.com/news/print/2013-02-28/vanguard-to-close-wellington-fund-to-some-investors.html
Shadow's right: soft close, but still open at Vanguard:
https://personal.vanguard.com/us/funds/snapshot?FundId=0021&FundIntExt=INT#tab=0
Regards,
Ted
Regards,
Ted.