VBIAX
Vanguard Balanced Index Fund Admiral Shares
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The investment looks up this month, but my account is down. What's wrong with VBIAX?
Will passive index investing ever stop working?
Mutual Fund Ended Day with $0.00 Gain / Loss ? How is this Possible?
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I’m considering doing the same thing. Did you end up opening a second brokerage account for intermediate goals and invest in VBIAX?
Thank you! My emergency fund is currently in SGOV. I was wondering if it would be smart to put remaining savings moving forward into something like VBIAX, which is 60% equity and 40% bonds.
Whats the purpose of opening another brokerage ? VBIAX is a good fund its a mix of 60% equities and 40% bonds so it will be safer then VTI but it can still fluctuate in value and lose value It depends on your risk tolerance
What is the time horizon for the big purchases? Though VBIAX is a "safer" investment, there are still risks and no one knows when a market down turn will occur. You may be better off buying treasury bills with rates still relatively high.
VMFXX is likely the "default" investment choice for your account You need to log in to your Vanguard account and change the investment fund for your existing $$ I don't know what your time horizon/age/risk tolerance is, so I can't advise you for *which* fund you should invest into. Perhaps something like VT or VTI. Or a balanced fund like VBIAX. https://www.reddit.com/r/Bogleheads/
Is there a Vanguard etf that has a domestic + bond blend, like VBIAX except an etf?
Is this a taxable account or a tax advantaged retirement account? If it is a tax advantaged retirement account, a Target Date Fund geared towards his year of retirement makes sense. If it is taxable, I think VBIAX is reasonable... but it lack international exposure.
The closet I'm aware is VBIAX which is essentially a 60% USA whole market (VTI) + 40% USA bonds (BND) blend. You may not like the allocation of target date funds, which is fine. However, the expense ratio is not a reason to avoid them. Vanguard offers 0.08% ER target date funds, which is so close to 0% as to be indistinguishable from 0%. Reducing ER is important, but when you're at the single digit ER level, there's no reason to worry.
I have VOO VUG VIG VBR VDE VHT VBIAX MGC VTI and a-lot of Schawb, T Rowe Price, Fidelity, Janus, and a couple other M/F that the name escapes me. Vanguard funds with very low expenses along with Schwab would provide you with a great diversifacation.
youd prob want a 60/40 fund, VBIAX , bonds havent done so well in the past few years but over a long time horizon, hedge against volatility at the expense of higher returns
Go with Vanguard, look at VOO, VIG, VUG , VTI, VBIAX. A starter Kit, maybe a conservative approach with a $1,000 each along with a $100 per monthly auto investment to dollar cost average into the possible volatile market. When the market is down you are buying in cheap, and it could be a slow growth for years is perfect for young long term investors. It is like a race and if you have children definitely go with VOO for them, all of that birthday or rewards money right in.
VBIAX gives me a 60% exposure to the bond market via the mutual fund.
Search for "Balanced" in the fund name. Everybody and their dog has an S&P 500 fund, everybody and their dog has a total market fund, and everybody and their dog has *some* kind of a Balanced Fund. Sometimes they're called Equity-Income funds, too. Fidelity has FBALX. Janus has JABAX. Vanguard has VBIAX. TRP has PRWCX (I think). AmFunds has ABALX and AFMBX. And so on, and so forth...
I did that and created a separate "car fund" -- to be used for future car purchases so I never needed to take out a car loan again. Since it's something that I was going to take money out of and not just looking for long-term growth, I use a 60/40 balanced fund (VBIAX to be specific). I haven't been disappointed.
a 60/40 with total US and total bond would likely be something like VBIAX, there is no etf version, but its more or less 60% vti/40% bnd. If you want a more globally diversified etf that includes ex us , AOR is roughly what you would want its US 38/ex-us 22/bonds 40
Here is something that you can do. (1)Open up an investing account with (Fidelity) or (Vanguard) or (any other prominent investing platform). (2)Let’s say that you —> “had an investing account with Vanguard.” Once you have an investing account, you can now start to (invest in “ETFs” or “Mutual Funds” or “stocks/individual companies.” PS: Make sure that you know whether Vanguard offers (partial shares). Vanguard will either offer partial shares for (Mutual Funds) or (ETFs/stocks of individual companies). (3)If Vanguard only offers the ability to invest in (partial shares of Mutual Funds) — I would invest in (VBIAX mutual fund). —>VBIAX = (total US stock market) + (total US bond market). A very very very solid mutual fund. PS: It is safer to (invest in mutual funds or ETFs). It is riskier to (invest in stocks of individual companies). —>Investing in a Mutual Fund = investing in a basket of different companies. —>Investing in an ETF = investing in a basket of different companies. —>investing in only in (Apple stock) = investing only in one company = riskier, but the rewards are greater. PPS: By investing in (VBIAX mutual fund), you will be generating (dividends + capital appreciation). —>Dividends = a guaranteed return on your investment + money that you can spend, without selling shares of VBIAX. —>(capital appreciation) and (capital depreciation) = money on paper if you have not sold any VBIAX shares. Aka: unrealized gains. If you want to set up an investment account for your son, to set up his future. VBIAX mutual fund, is a great investment. PPS: If you want to understand “the psychology (as to why having bonds in your stock portfolio is good” — just ask.
Step 1: choose solid investments. Investments, that are going to stay relative t for (20 years/30 years/40 years/the longer = the better). It is wiser and safer to invest in (solid ETFs or solid mutual funds), rather than just in “individual companies.” Step 2: If you want a good stock portfolio. It is good to have a mixture of (equities + bonds). Or, (common shares + bond shares). —>Common shares = associated with maximizing capital appreciation(aka: unrealized gains). It is also associated with “a lower dividend yield.” Like 2%. Still good. Common shares that offer a VERY HIGH dividend yield, may not be solid investments. —>Bond shares = associated with (moderate to above moderate dividend yield). It largely depends on “what types of bond grades that you invest in.” Bonds are valuable because they are essentially (debt assets). Think about: “How do banks mainly make a profit.” Banks mainly make a profit “from debt.” If you hold certain high grade bonds, bond holders get to receive a percentage “from that debt.” —Common shares = 1st ones to cut their dividends during (minor bear market cycles + moderate bear market cycles + major bear market cycles). —Preferred shares = 2nd ones to cut their dividends during (minor bear market cycles + moderate bear market cycles + major bear market cycles). It mainly depends on the entities (cash flow). I would prefer (common shares + bond shares), over (preferred shares). —Bond shares = 3rd ones to cut their dividends during (minor bear market cycles + moderate bear market cycles + major bear market cycles). Or, (bond shares) may never cut their dividends because “of what bonds are.” (Bonds/bond shares) are essentially DEBT ASSETS. ______________________________________________________________________________________________________________________________________________________________________________________________________________________________________ Very safe ETFs, that you can invest in for the long term: —>VTI ETF= total US stock market = 100% common shares of companies. —>VT ETF= total world stock market = (65% US equities + 35% international equities). It has the option of allocating a higher percentage “to US equities” or “international equities” — if one were to be experiencing significant turmoil. —>VOO ETF= top 500 US companies. All (large caps + mega caps). Offers not as much diversity compared to (VTI or VT). —>You could also ask ChatGPT, what the (Fidelity ETF equivalents of “VT + VTI + VOO are.” If you are investing on (Fidelity platform), then investing in Fidelity ETFs — could mean “having to pay 0% trading fees.” —>BND ETF = total US bond market. Of a diverse range of “good bond grades.” —>BNDX ETF = total international bond market. Excludes US bonds. Of a diverse range of “good bond grades.” —>BNDW ETF = total world bond market. PS: Remember as to why I said “bonds were valuable for a certain reason.” __________________ Now, if you invest in Mutual Funds — a very very very solid investment would be: —>VBIAX = (total US stock market + total US bond market). This is the Vanguard version. PS: Make sure that you are able to purchase (partial shares) — of ETFs or Mutual Funds
Here is something that you can do. (1)Open up an investing account with (Fidelity) or (Vanguard) or (any other prominent investing platform). (2)Let’s say that you —> “had an investing account with Vanguard.” Once you have an investing account, you can now start to (invest in “ETFs” or “Mutual Funds” or “stocks/individual companies.” PS: Make sure that you know whether Vanguard offers (partial shares). Vanguard will either offer partial shares for (Mutual Funds) or (ETFs/stocks of individual companies). (3)If Vanguard only offers the ability to invest in (partial shares of Mutual Funds) — I would invest in (VBIAX mutual fund). —>VBIAX = (total US stock market) + (total US bond market). A very very very solid mutual fund. PS: It is safer to (invest in mutual funds or ETFs). It is riskier to (invest in stocks of individual companies). —>Investing in a Mutual Fund = investing in a basket of different companies. —>Investing in an ETF = investing in a basket of different companies. —>investing in only in (Apple stock) = investing only in one company = riskier, but the rewards are greater. PPS: By investing in (VBIAX mutual fund), you will be generating (dividends + capital appreciation). —>Dividends = a guaranteed return on your investment + money that you can spend, without selling shares of VBIAX. —>(capital appreciation) and (capital depreciation) = money on paper if you have not sold any VBIAX shares. Aka: unrealized gains. If you want to set up an investment account for your son, to set up his future. VBIAX mutual fund, is a great investment.
I started taking over my wife's finances. She has a 401k matching. looked over everything that her wok established for her. Seems balanced for most part. But I think she coul do without the two small caps and target date fund. But 1 would like to hear from those who are well versed in creatin a solid portfolio? Her current funds are listed below. We are medium risk people-. Plus as a side note: I am not familiar with vanguard, and it seems like their platform (especially the app) is not that user friendly. VSMAX, VDADX VFIAX VSGAX VTIVX VBIAX VDIGX VIMAX
You can either do the robo-advisor at Schwab, or transfer to Vanguard and put it in the Vanguard Balanced Index Fund (VBIAX). VBIAX tracks the total stock market index and total bind index at a 60/40 ratio. The dividend yield is currently 4.32%.
>but I’m wondering if I should consolidate the money in my VSIAX, VIMAX, VTMGX (and possibly even VTIAX and VBIAX) into VTSAX and and VFIAX Consolidating can be good. However, I wouldn't use this combo. VTSAX already fully includes VFIAX as over 80% of its weight. Recent years have favored larger caps over small, but there's plenty of times where it was small leading the way. You'd also be taking on uncompensated risk of single country (I can pay links explaining this if needed), since both are US only. There's been plenty of times where it was the US trailing international. >Are VTSAX and VFIAX diversified enough for a long-term strategy? I'd say no, in fact it is less diverse than VTSAX alone. But even VTSAX, I'd pair with VTIAX. See this for one example: https://www.bogleheads.org/wiki/Three-fund_portfolio The bonds are the part that adjust risk level. More bonds equals less risk. >Can I transfer between funds without paying tax? It depends on the account type. The IRA and TSP would be yes, the taxable brokerage is no.
If you add an extra space (line) between each bullet point, it makes it easier to read. TSP): * 10% TSP Lifecycle 2060 & C Fund * 30% VTSAX (total) * 25% VFIAX (500) * 10% VBIAX (balanced) * 10% VTIAX (international) * 10% spread between VIMAX (mid-cap), VSIAX (small-cap), and VTMGX (developed) * 5% spread in some large cap stocks
>I watched a lot of my family members lose a lot in the 2008 recession They only lost if they sold everything. If they just held, and kept buying a discount, their accounts would worth like 7-8x now compared to the bottom of the market during that recession. Recessions are when dumb or vulnerable people give their money to smart or less vulnerable people. Stop buying individual stocks. Buy broadly diversified, inexpensive index funds. Go visit r/bogleheads. If you are just very risk averse, and don't want volatility, then something like VBIAX is good choice. It's 60% US stocks, and 40% bonds. 40% is more than what most people in their 30s would want, but you seem particularly apprehensive.
You could try getting your feet wet with something like VBIAX. It's a balanced index fund that has some downside protection from being 40% bonds. That's what I did with 100k I used to have at US Bank (they tried to sell me on an advisor too). I think I split it between that and Wellington fund. Since then I've fallen in love with investing and trading, but I still leave most of my money in VOO, SCHD and bond funds for safety. The problem with advisors, at least from my perspective, is that their fees will drag on compounding returns over the long haul.
Hi! I have about $45K sitting in Vanguard mutual funds (VBIAX and VFTAX) in a Brokerage account. I am considering selling these and buying ETFs instead for the tax savings long-term as I am 25. I have not purchased shares of either of these in more than a year ***other than*** what I have reinvested from a Dividend or Capital Gain (<$1k this past year). What are the tax / fee implications of selling these shares? If they are worth selling, any thoughts on the best way to do so?
I'm retired, I have 1 year of spending in an emergency fund, currently in a online high yield savings account earning 5% interest, but even if interest rates go down it will still stay in a savings account. Keeping that liquid is more important. Other than that I have VTSAX with the majority of my investments, I also have VBIAX which is vanguard's balanced fund that automatically balances between stocks and bonds. I have a small amount in VBLIX which is the intermediate bond fund and a similar amount in an international index fund just for some additional diversity. It helps that I also have passive income from some other sources so I'm not reliant on my investments, I basically don't pay attention to the market on a daily basis and just do a re-balancing 1 or 2 times a year if at all since the balanced fund kind of already does that.
KISS- keep it simple stupid 60/40 stocks/bond, given your age. VBIAX
60/40 is a reasonable (and common) default for someone who is retired (or semi-retired). Fidelity charges transaction fees for VBIAX, so that's probably not the best idea. Go with either Fidelity's version (FBALX I think?) or VTI+BND and rebalance yourself annually. It's also common in retirement to keep money you know he'll need in the next 5 years in a fixed-income investment (HYSA, MMF, Treasuries, etc.). New car, medicare supplement premiums, etc. But that's beyond the scope of this sub - you'd need a full retirement plan to determine what those needs might be.
Euro-denominated? Ah, that's interesting (VBIAX is USD). But look at the "max drawdown" section in your link... the 2007-2009 bear's max drawdown was still -18% for your backtest, it just didn't happen to fall across a calendar year boundary. (I suspect VBIAX's max drawdown was probably in the -30% neighborhood, as comparison).
Looking at VBIAX (Vanguard's 60/40 balanced index fund), it looks like there were also negative years in 2018 (-2.9%) and 2008 (-22%). So no escaping (unscathed) the truly horrible stock years (like the 2008-2009 GFC) with a 60/40... something to keep in mind if you do this. And VBIAX has returned around ~7% annually since its 2000 inception, so you might want to ratchet down your 8-12% estimates.
It would be very beneficial to buy (VBIAX). This is a very good “long term investment.” -this single mutual fund is (very resistant to bear markets). Comprised of: —>60% exposure to US stocks. —>40% exposure to US bonds —> well diversified for all types of bonds. Investing in VBIAX, is like (investing in US total stock market). PS: (VBIAX) is a mutual fund. You might have to find the ETF equivalent of this
You should select an allocation you are comfortable with such that you won't pull out money during downturns. If you missed the top 10 days (just 10) in the S&P 500 over the past 20 years the return was 5.3% [https://www.schwab.com/learn/story/market-corrections-are-more-common-than-you-think](https://www.schwab.com/learn/story/market-corrections-are-more-common-than-you-think) The trick is knowing what allocation you are comfortable with. Think it through and write it down as an investment plan. A well thought out plan is easier to stick too during tough times. Also, look across all investments for the bigger picture. If you have 400K in S&P 500 and put another 400K in VBIAX with 60% equities /40% (bonds) your total bond allocation is 20%. Also consider if you have a good pension you can probably be a bit more aggressive in your 401K/IRAs then those who do not (particularly as you get closer to retirement).
VBIAX has done about 7.6% per year with divs reinvested since 2004, same with since 2014 (past 20 and 10 years). VFFSX has done 14.2% per year since it started (2016) If you’re okay with this investment doing 1/2 of the S&P 500s, then sure go for it. But if you think you’re going to be disappointed by that, go with VOO.
So based on the YTD performance in 2023 of 11.7%, your dad’s portfolio definitely underperformed the SPY (26%) obviously but also underperformed the 60/40 portfolio like VBIAX (17.6%). If it were me, I would not stick with these financial advisors because I would be leaving too much money on the table.
I think that’s a different one. The email that went out today specifically mentioned Vanguard and Dodge & Cox. Those currently carry a $75 fee, soon it’ll be $100 (or 5%, whichever is less). And it’s per buy transaction, so unless you’re doing something huge like rolling over your 401k it’s not worth it. Why pay a fee for VBIAX when you could get VTI+BND or FBALX?
Don’t let someone day trade your money! Omg please. That’s a horrible idea. It’s basically gambling. You might want to max out your 2024 IRA (Roth or traditional depending on your income) which is $7000. If you don’t have an IRA and don’t know how to invest in one, choose a target date fund or put it in a total market index fund for now. I recommend Fidelity if you don’t already have an IRA or brokerage account. Invest the rest in index funds within a brokerage account. You can buy bond index funds and stock index funds. Even a mutual fund like VBIAX or FBALX would be an okay thing to do while you figure out what you want. Don’t let someone gamble it trying to time the market.
>who is charging 1.35%, and also $800/year which is not nothing you are being absolutely fleeced and this should be considered a crime here's the answer: 10% in short term bonds (USFR) for everyday expenses, hold 12 months expenses 90% in a 60/40 fund (VBIAX)- Sell every year to replenish the 12 months expenses Congratulations, you will now outperform your scammer of a financial advisor and sleep better at night
Shouldn't I wait to sell them until they are back up? I have VBIAX which has bonds.
I was scared to put more in because it kept going lower and lower. And I have so many different stocks and ETFs and my etrade won't allow fractional shares. But from now on I'm only going to put money in my main ETFs that aren't terrible like SPYG, XSD and VBIAX (index fund).
What are your thoughts? (My age 35, married with kid). Long term Investment index account VFIAX 60.8% VBIAX 14.6% VTSAX 12.8% VGSLX 11.6% 401K - FATIX 70.7% FSMAX 14.8% FXAIX 14.5% Thanks!!
How soon might she need some of it? If less than 5 years, likely best to keep in CD, HYSA or money market. If OK to invest for longer, for a one-investment easy button perhaps a low cost balanced index fund like Vanguard's VBIAX is appropriate.
Adding to this, the [research indicates](https://www.vanguard.co.uk/professional/insights-education/insights/in-times-of-volatility-low-cost-index-investing-still-shines) that actively managed funds generally don't perform any better, so the best way to improve your return on investment is to minimize costs. That not-quite-half-percent may not seem like much, but over time that could get to be hundreds of dollars a year. Beyond that it's basically a question of risk:reward. VOO is on the higher-risk side since it's concentrated in one asset class (US large-cap stocks), but OP's young so maybe no big deal. There are other similar but more diversified options though like VTI (includes smaller companies) or VT (includes international). If you're looking for something more stable, let's say it's for a shorter-term goal like buying a house, maybe they could even go with a mix of stocks and bonds like VBIAX.
Footnoting this, when we talk about index funds we usually mean stock funds like VOO (based on the S&P 500) or VTI (US total stock market index). However, there are also bond and real estate index funds, as well as funds that combine asset classes like [VBIAX](https://investor.vanguard.com/investment-products/mutual-funds/profile/vbiax) (other brands are available). Mixing asset classes would probably get a lower overall return than just all-US-stock, but it should be a smoother return. In other words, any up- or downswings shouldn’t be as big. That can be important if you’re on a shorter timeline, e.g., most things other than a distant retirement.
The only transactions between 11/01 and today is 2 $50 deposits and 2 investments of the same $50 into VBIAX on 11/07 and 11/14. I do $50 every week. Capital gains is not included in statements or transaction history on Vanguard. I get paid dividends quarterly though. I always reinvest those and that does show up. Last dividend was 09/22 though. I haven't made any withdrawals this month. Do you think it's worth calling Vanguard over?
Are you sure you are reading it right? VBIAX was at $41.05 on 11/1 and today at $43.13. That’s sounds like 5% to me
QQQ for Nasdaq SPY or VOO for S&P 500 VXUS International ex US BND for bonds I'm now in allocation funds mostly VBIAX. 60/40 FPURX. 60/40 VWINX. 30/70 Have a look at bogleheads 2 or 3 fund portfolios. Some additional ideas.
I also have a 457b, and I like to do a mostly low cost index fund approach, where I'm getting the total market, by having a large, mid and small cap fund, including a bit of International (usually about 10%) Mine is pre-tax, so I can save on my taxes NOW. I have a Roth IRA that I contribute to for my after tax money investing. Here's my current breakdown: Fidelity 500 (S&P 500 - Large cap) - 28.8% (FXAIX) Vanguard Mid-Cap Fund - Admiral Shares - 15.64% (VIMAX) Vanguard Small-Cap Fund - Admiral Shares - 15.67% (VSMAX) Vanguard International Growth Fund - Admiral Shares - 9.35% (VWILX) Vanguard Balanced Fund - Admiral Shares - 15.15% (VBIAX) Cohen & Steers Real Estate Fund - Institutional Class - 15.39% (CSDIX) I'm getting ready to get out of the Balanced fund, because it's never done as well as some of the other funds in that class; it just had a lower expense ratio, which isn't the most important feature if you can be getting a better overall return. I have about 12-13 years until retirement, and about 8 years until I'm fully vested for my pension. So depending how well I'm doing, I may get out in 10-11 years instead and be able to retire a couple of years early.
There are balanced funds that will have something like 60% stock allocation 40% bond allocation VBIAX for example There are others as that is still pretty aggressive for a 63 year old that allocate more to bonds
I am going to assume they aren't using returns with dividends reinvested ? YOu can do some basic backtesting with AOR, Ishares global 60/40 etf or VSMGX life strategy global 60/40 fund/. VSMGX has data for 38 years or so its a decent amount. According to portfolio visualizer the CAGR is 7.28%. If for some reason you don't want international you can back test with PF using US stocks and bonds , or you can use a fund like VBIAX, or the older vbinx, to back test. Thats using total stock instead of sp500 though. ​ You can look at 60% large cap/40% us bond market [here](https://www.portfoliovisualizer.com/backtest-asset-class-allocation?s=y&mode=1&timePeriod=4&startYear=1972&firstMonth=1&endYear=2023&lastMonth=12&calendarAligned=true&includeYTD=false&initialAmount=10000&annualOperation=0&annualAdjustment=0&inflationAdjusted=true&annualPercentage=0.0&frequency=4&rebalanceType=1&absoluteDeviation=5.0&relativeDeviation=25.0&leverageType=0&leverageRatio=0.0&debtAmount=0&debtInterest=0.0&maintenanceMargin=25.0&leveragedBenchmark=false&portfolioNames=false&portfolioName1=Portfolio+1&portfolioName2=Portfolio+2&portfolioName3=Portfolio+3&asset1=LargeCapBlend&allocation1_1=60&asset2=TotalBond&allocation2_1=40) data only goes back to 1987 though. US large cap is probably a close enough approximation of sp500.
It looks like there's definitely some "bond drag" effect, but it doesn't account for all of the under-performance. Not counting dividend reinvestment: VFIAX (Vanguard 500) was $426.24 on 11/1/2021, and closed at $381.91 yesterday. Down about 10.4%. (mirrored in the graph above) VBIAX (Vanguard 60/40 Balanced) was $49.34 on 11/1/2021, and closed at $41.61 yesterday. Down about 15.7%.
8%? That's all? Your portfolio is doing fine. At your age you could start into a growth fund/ETF, since VBIAX is a pretty conservative allocation for a young person's retirement account.
Simply keep stock picking (gambling) to 5-10% max. Broad indexes like the S&P 500 and Nasdaq-100 are up since January 2020. Heck, even 60/40 stocks/bonds balanced fund (VBIAX) is up. Numbers don't lie. [VOO vs QQQ vs VBIAX Jan 2020-Feb 2023 with dividends reinvested](https://www.portfoliovisualizer.com/backtest-portfolio?s=y&timePeriod=4&startYear=2020&firstMonth=1&endYear=2023&lastMonth=12&calendarAligned=true&includeYTD=false&initialAmount=10000&annualOperation=0&annualAdjustment=0&inflationAdjusted=true&annualPercentage=0.0&frequency=4&rebalanceType=1&absoluteDeviation=5.0&relativeDeviation=25.0&leverageType=0&leverageRatio=0.0&debtAmount=0&debtInterest=0.0&maintenanceMargin=25.0&leveragedBenchmark=false&reinvestDividends=true&showYield=false&showFactors=false&factorModel=3&portfolioNames=false&portfolioName1=Portfolio+1&portfolioName2=Portfolio+2&portfolioName3=Portfolio+3&symbol1=VOO&allocation1_1=100&symbol2=QQQ&allocation2_2=100&symbol3=VBIAX&allocation3_3=100)
VBIAX. One stop shop, no need to rebalance.
A last question? we hear often Financial Advisor recommending a balanced strategy. When I check VTSAX for example, tracking the S&P500, I can see a performance of 160% over the past 10 years. If I check a balanced mutual fund like VBIAX, the performance was 68% over the past 10 years. So if I have 10 to 20 years of investment in front of me, what is the point of having a balanced portfolio versus a 100% ETF risk portfolio benchmarking the S&P500 as an example?
I have Vanguard VBIAX, VB and MGV and also SPYG
VBIAX, VDIGX and VFIAX. Buffet and chill
Putting aside esoteric investments and convoluted strategies, the highest return per unit of risk is still the end goal. Not everyone wants to have the volatility of pure equity exposure. The goal is to create an optimal portfolio for a given level of risk. If you look at Vanguard’s pure index based portfolios, they don’t compete well vs. many others with similar allocations. If you use VBIAX and compare it to TRAIX, TRAIX blows it out of the water. Fees are very important, but in my opinion, the average investor doesn’t focus on overall asset allocation enough.
Heading into the final days of 2021 I sold my ARK & DK and invested that more into the following, now my portfolio now looks like: VTSAX: 30% VBIAX: 23%( this is part of my emergency fund) APPL: 23% CRM: 10% Disney: 7% NET: 7% Based on $61,000