Vanguard fund suggestions

mrc70

Hi Friends,

I am doing some adjustments to my portfolio due to 401k rollover to my existing rollover IRA account at V'rd.
I do not prefer index funds, so looking at suggestion for active funds.

My high conviction funds at Vangaurd are

Domestic: VDIGX, VEIPX and VWELX

International: All of them are mediocre funds

Do you have any suggestions ?
FYI, I already hold one brokerage account at TDA, which I am using only for funds for the last 7 years, so I have no plans of opening another brokerage account at Vanguard.

Charles, Can you please provide your data for Vangaurd funds ?

Thanks!

mrc70

Looking at my overall portfolio, which I shared recently in a lengthy posts/thread, I am thinking adding to short term bonds that I held at V'rd, since I sold PRSNX since then (also sold PTTRX version in 401k), buy VINEX, and rest of it into VDIGX or VEIPX.

Appreciate your suggestions/thoughts.

JohnChisum

Are you interested in using funds from other companies or do you wish to stay with Vanguard exclusively?

Mid-Cap value has been a great place to put money. VMVIX might be a place to start. As for other funds outside of Vanguard, Matthews has some excellent funds for Asia exposure.

mrc70

Lost the content after typing it on iPad. Doing it again but in very short.

Interested in only V'rd funds, that too active ones.

JohnChisum

I looked up VMVIX and it is still active from what I saw. A lower cost option would be VMVAX which is the same fund but as Admiral shares. A very low ER for that kind of fund. (0.10%)
Personally I think mid cap value funds are a good basic holding for a portion of your portfolio. As always, your mileage may vary.

Vanguard has a plethora of index funds since they are the index fund king. You mentioned you don't want index funds so that does limit you in a way with Vanguard. Their website has a pretty good way of selecting funds to research. While I do have large cap in my portfolio, I actually like the mid and small cap funds. A bit more bang for the buck and in the case of mid caps, you are not taking on that much more of a risk.

There are a number of very qualified people here that can steer you better than I. Personally, I don't have any Vanguard funds so I am at a disadvantage here. Also, this site has and is still working on a database that might help you in your decision.

mrc70

Bumping up to see, if I can get more replies

msf

You seem to be focusing on value-leaning funds (with funds that I like), but on the growth side is another obvious fund - Capital Opportunity VHCOX.

Managed by the Primecap team, and the only way to get these managers in a Vanguard fund (I believe the other Primecap-managed funds are closed, though you can get the team through Primecap Odyssey funds).

On the international side, I'd stick with VG's index funds - specifically, all world ex US, There are two such funds, tracking different indexes:
- VTIAX tracking FTSE Global All Cap ex US Index (5300 stocks, 46 countries in the index),
- VFWIX tracking FTSE All World ex-US (2200 stocks, 46 countries in the index)

The former has more (and consequently smaller) stocks; if one is going for an index, it would be my preference.

kevindow

Hi mrc,

Here are some more actively managed Vanguard funds for your consideration: VSTCX, VSEQX, VEXPX/VEXRX, VDEQX, VWIAX/VWINX, VGELX/VGENX, and VGHAX/VGHCX.

Kevin

Mona

Reply to @mrc70:

Kiplinger's includes VDIGX and VASVX as two of their 25 favorite no load mutual funds.

I think VDIGX is a good large cap blend fund and VASVX a good mid cap value fund.

Mona

mrc70

Reply to @Mona:

I have VDIGX since 2006, much before Kiplinger recognized it. It had less 500M when I invested. Proud owner of the fund since the new mgr came aboard.

mrc70

Kevin,

Been in VSTCX and VSEQX in the past, however, not completely convinced about quant funds, though I hold one AEMGX. Never a fan of VEXPX and its plethora of subadvisors/mgrs. Healthcare, I already own PRHSX, so ruled out. Already own Commodity and Natural Resource funds, not intersted in engery fund. Have VWLEX now, so not intested in VWINX due to interest rate scenario at present.

I am with Vanguard since 2001, so know a bit about the fund shop. Tried even a trial subscription of Dan Wiener around 2004-2005; Please give me any other suggestions, when you have time.

BTW, though we differ in the way we invest, I want to thank you for your tireless efforts to unearth unknown mutual funds and pass on that info here as well as at M*

Art

mrc70

I recently at Vanguard purchased (VASVX) for my wife and my fathers account. I am a big fan of small/mid cap funds. Good numbers for 1-3-5 years.

Art

Mona

Reply to @mrc70:

I am with Vanguard since 2001, so know a bit about the fund shop. Tried even a trial subscription of Dan Wiener around 2004-2005; Please give me any other suggestions, when you have time.

mrc70,

More suggestions? In my opinion, all but two of the good Vanguard funds have been discussed in this thread. Primecap and Primecap Core. However, while they are closed, they can be purchased if you are a Flagship member. Also if you are a Flagship member, you have 25 yearly free trades with Vanguard Brokerage, which opens another world. If that is the case, I encourage you to look at Primecap Odyssey Aggressive Growth POAGX. It's a great mid-cap growth fund and the type of fund VHCOX was before Vanguard unfortunately allowed it to morph into mostly a large-cap growth fund.

Mona

VintageFreak

Reply to @mrc70: Check out VDAIX. Almost as good, but for some reason has MORE assets. Go figure.

mrc70

Reply to @VintageFreak: That's because it is an index fund. I think most of the institutional investors prefer to invest in index funds to retain control of their allocation.

mrc70

Reply to @Art: Hi Art, I know about VASVX because Barrow, who used to manage a major portion of VWNFX but it was closed when I wanted to invest in it in the past. Will take a look. Thanks!

mrc70

Reply to @Mona: Hi Mona, I spoke to a Vanguard CSR couple of months back to explore merging my TDA accounts into Vanguard. I dropped the idea as Vanguard does not have as many funds as NTF as TDA. For example, Artisan funds are TF at Vanguard. I did not realize that 25 free trades applies to funds too. Thanks for the suggestion. As I said earlier, I am already into VHCOX, never got a chance to invest with Primecap team before this, and I am a big fan of them. Most of their funds were closed by the time, I started investing with Vanguard and I did not invest Primecap Odyssey series of funds as I don't want to open a direct account with them but contemplated it when they started those funds.

mrc70

Reply to @JohnChisum: Good suggestion. Have it in my daughter's Educational IRA.

mrc70

Reply to @Mona: I read thru the V'rd brokerage fee details. It is applicable to only stocks and non-Vanguard ETFs, not mutual funds. JFYI

msf

Reply to @mrc70: The 25 free trades apply to TF funds as well as stocks and ETFs. See footnote 8 on the fees and commissions page:

For Flagship clients, TF fund transactions are included in the offer of 25 commission-free transactions described in footnote 3. Subsequent transactions are at the rates shown in the fee schedule for TF funds above.

It does appear that this page hasn't been updated recently, since Vanguard now offers Flagship Select services for "ultra-high-net-worth clients". These one percenters get 500 free trades.

mrc70

Reply to @msf: Sorry, I missed that out. Anyway, does not apply to me as I fall under Voyager. If I really want TF funds, V'rd is defintely better as they are charing only 20 bucks for each transaction, whereas TDA charges 49. I contemplated moving my IRA accounts from TDA to V'rd in the past and probably need to look at it again.

Investor

Reply to @msf: The ones that does not probably need to worry about TF get the most free trades and those of us that is most affected by TF have to pay. That is the wicked send of justice. I guess the high net worth customers will trickle their savings to all of us (well at least Republicans believe so).

Mona

Reply to @Investor:

Investor, here is one for you.

I was talking to my friend today who recently retired from her 35 year career with IBM. In her 401k she has a number of American Funds with share class R6 (the lowest ER and no-load). A bunch of Fidelity funds K share class. Any Vanguard fund that offers Institutional share class or Admiral class. A number of Institutional class funds from PIMCO. And DFA funds with no purchase fee and the lowest ER.

Do you think she will contemplate an IRA Rollover

Mona

Sven

Reply to @Mona: Your friend has some of the best institutional shares without lowest ER that are NOT available to retail investors. The DFA funds are very nice options. If she can manage it herself, there is NO reason to rollover her 401(K).

Sven

Reply to @mrc70: Although Vanguard charges $20 to purchase TF funds (Voyager and Voyager Select accounts), they also charge $20 to sell. In the end it all works out the same comparing to TDA, Fidelity and Schwab. For example, Fidelity charges $75 to purchase, but none in selling.

Few advantages with Vanguard brokerage is there is no transaction fee to buy or sell Vanguard ETFs.
https://personal.vanguard.com/us/whatweoffer/stocksbondscds/feescommissions
Other non-Vanguard ETFs cost $7 which is roughly the same among the larger brokerages.

ron

Flagship requires $1 million is vanguard funds. Other funds do not count

msf

Reply to @Sven: VBS and TDA charge for buying and selling ($20/$49 respectively). Schwab and Fidelity charge only to purchase ($76/$75 respectively), subject to certain holding periods. The difference between the two is that Fidelity generally allows you to purchase additional shares at $5/transaction via automatic investing (which can be used for one-time transactions).

It seems to me that VBS and Fidelity come out cheaper for TF funds, depending on your trading pattern. Of course, if there's a fund that's load waived at Schwab (or TDA) but not at the other brokers, the calculus changes completely.

Vanguard provides access to PIMCO institutional class shares (with TF at retail level mins - $25K). Schwab and Fidelity require $100K. Vanguard Brokerage Service has its advantages; but it depends on what funds you're interested in.

One other note - in order to be a Flagship customer (and eligible for the 25 free trades), you must have $1M in Vanguard funds (which may include ETF share class and annuity portfolios as well as retail funds). It's not enough to have $1M AUM with Vanguard, if some of that is in non-Vanguard funds.

Mona

Reply to @msf:

One other note - in order to be a Flagship customer (and eligible for the 25 free trades), you must have $1M in Vanguard funds (which may include ETF share class and annuity portfolios as well as retail funds). It's not enough to have $1M AUM with Vanguard, if some of that is in non-Vanguard funds

.

If your mother, father, sister, brother, aunt, uncle, cousin...is a Flagship member, you can ride their coattails and become one too without $1M invested. I am proof.

Mona

Ted

Reply to @mrc70: Look at VCVLX.
Regards,
Ted
Lipper Snapshot VCVLX: http://www.marketwatch.com/investing/fund/vcvlx

mrc70

Before I invested in VDIGX in 2006, I considered VCVLX too before opting for VDIGX. I observed it since then, it acts some what similar to Fidelity leveraged fund, volatile, very good in bull markets and very bad in bear markets. I am not very sure in what stage of bull market but I am not very comfortable investing in it at this point.

mrc70

Thank you all for suggestions. I will post what I did once I completed my allocations.