MFOHome About Commentary Discussions Funds The Best Resources Support Us!

Howdy, Stranger!

It looks like you're new here. If you want to get involved, click one of these buttons!

Sign In Register

Categories

In this Discussion

Here's a statement of the obvious: The opinions expressed here are those of the participants, not those of the Mutual Fund Observer. We cannot vouch for the accuracy or appropriateness of any of it, though we do encourage civility and good humor.

    Support MFO

  • Donate through PayPal

Vanguard Global Low Volatility Fund - Any Takers?

VintageFreakVintageFreak
edited December 2013 in Fund Discussions
I own Vanguard Total World index VTWSX. Was looking at switching to the low volatility since it has launched and book some gains in the process. I would also come very close to wiping my booked capital loss slate if I do this.

Any idea whether "low volatility" will translate to higher/lower taxes? It would seem to me it would be less tax efficient due to the all the "stuff" it will need to do to dampen volatility.

Comments

  • TedTed
    Dear VintageFreak: Here is the info on the fund I linked the other day. According to Vanguard, the fund will not be tax-efficient.
    Regards,
    Ted
    http://www.mutualfundobserver.com/discussions-3/#/discussion/9653/vanguard-launches-global-minimum-volatility-fund
  • InvestorInvestor
    Interestingly, this will be an actively managed fund from Vanguard. Most specially low volatility funds out there are Index type variety.
  • VintageFreakVintageFreak
    I think I'll stick VTWSX for now. Thanks guys.
  • Sven
    Probably want to wait a bit to see the entire portfolio first and compare it to several low volatility index funds.
  • cman
    Reply to @Sven: Agree with this entirely. Not sure how you can fit this into a portfolio without much visibility yet into its strategy/holdings.

    The low ER and being tied to a dollar hedged index suggests non US equities held almost entirely in ADRs.

    Seems to me an alternative ETF combo EFAV,EEMV,USMV - all available commission free on Fidelity at much lower ERs and more tax efficiency would provide more flexibility to a portfolio and with no minimums. If you wanted the manager to provide value with active management, not sure Vanguard is the place to look for such funds.:-)

    The above if Fidelity account is an option, of course. There may be other avenues for such alternatives.
  • Sven
    Reply to @cman:
    ETF combo EFAV,EEMV,USMV - all available commission free on Fidelity at much lower ERs and more tax efficiency would provide more flexibility to a portfolio and with no minimums.
    Yes these are good options. Here is more information on low volatility index returns from Bogleheads (not necessary my favorite site for discussion).

    bogleheads.org/wiki/Low_volatility_index_returns


Sign In or Register to comment.