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VMVFX -- Vanguard Global Minimum Volatility

Can anyone find anything NOT to like about this fund? Sure, it's lagging YTD, but performance since inception is exceptional, and it's indeed delivered low volatility.

I've been trying to swear off adding any new active funds, but this one sure looks tempting.


  • I don't like the lagging YTD (as you point out.) I've owned it since April 2015, can't convince myself to sell any so I trimmed some bond funds instead.
  • Owned since late 2014. I bought it to supplement MSFBX and SGENX. Standard deviation of 6.63 lower than SGENX s/d of 7.88, so I've been satisfied so far.

  • Owned since inception, like its eclectic & global composition. That said I couldn't care less about what it's doing relative to its benchmark.
  • I own VG Cap Opp, VHCOX, which has been doing great. Used ytd profits to buy some VMVFX. I wanted to add some foreign exposure and I like low vol. Low vol should do worse when the market is frothy. I read an old M* article that said low vol funds should have better risk adjusted returns but not better absolute returns. Makes sense. FWIW.
  • I bought some VMVFX last March. Since then I twice bought more. I don't have much cash now and I don't want to sell any of the 20 other funds I now own, so I'll let it coast along. I liked the idea of less currency exposure in the foreign markets.
  • Same article above showed USMV (etf, I know) had a lower standard deviation and better returns than an 80/20 stock/ bond mix. Again, FWIW.
  • Why not ACWI?
  • edited August 2017
    ron said:

    Why not ACWI?

    VMV's got more small & mid caps, and it's currency hedged. ACWV (which I think you're referring to, the min vol option) is mostly large caps, and not currency hedged. I assume the hedging difference is what's mainly responsible for ACWV's better returns ytd, and VMV's over longer periods.
  • @AndyJ, Concur with your assessment. USD has been declining versus other currencies since Jan 2017 and it negatively impact funds which use currency hedging strategy for this year.

    Last I reviewed VWVFX, it has over 30% allocated to mid- and small-cap and the median market capitalization is lower than ACWV, which is dominated by large caps. Similar investment strategy used in both fund/ETF, but the approaches are not equivalent. For maximum tax efficiency, ACWV create little or no long term capital gain since the benchmark is revised once a year; thus more suitable for taxable accounts. VWVFX is actively managed that generated small capital gain (turnover is in the teens) in the last several year.
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