You are almost certainly not measuring this correctly.I read an earlier forum about this fund where people were complaining about negative results over 2-3 year time period. I invested in this fund back in 2003, and I have a negative rate of return after reivnesting all dividends and capital gains! That's a time period of 21 years, long enough for this fund to have gone through several up and down cycles that I should have some profit by now, but I don't. I recently recieved my summary prospectus that came in the mail from Vanguard for this fund, and the 10 year average annual rate of return was 1.79% I guess the twenty year rate of return was even worse (they don't tell you anything beyond 10 years) or I wouldn't have a negative result today.
True, 1.79% isn't far different from any of the benchmarks provided, but it is a poor investment. Laddered CDs, moneymarkets, or a single bond, if you have the cash, would be better than what I've received with this fund. Or invest in the Vanguard Wellington and take out the cash when it pays dividends and capital gains in Dec. each year (it pays big in most years) and store it in a MM for liquid money. In years when Wellington is down, don't take out the dividends and capital gains, and use your stored MM for cash you need.. That's what I plan on doing.
Anyone else have any advice or thoughts on this?
Tenley
Statistics: Posted by exodusNH — Sun Sep 08, 2024 1:48 am — Replies 10 — Views 808