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re: Good ETF or Vanguard fund suggestion...

Posted on 12/6/12 at 3:09 pm to
Posted by matthew25
Member since Jun 2012
9425 posts
Posted on 12/6/12 at 3:09 pm to
Good point. What do you suggest to look at, going forward for a mutual fund?

I see some funds with Apple as 10% of its holdings, and I am wary. Low P/E which is in line for valuation at 1000, but it seems it only rises when a new product is introduced.
Posted by Janky
Team Primo
Member since Jun 2011
35957 posts
Posted on 12/6/12 at 3:27 pm to
quote:

What do you suggest to look at, going forward for a mutual fund?


Some here don't agree with me, but I primarily look for older funds with stable track records. Assuming management hasn't changed I look and see how they performed in 2008 and the tech bubble. If they did well there then I look and see how much lag if any they experienced in the good years. I am not trying to hit homeruns, singles and doubles will do fine for me. Then depending on the type of fund I look at other things like beta and turnover. The last thing I look at is expenses. I will pay an extra 75bps for an extra 3% or more in returns.

As for as Apple goes, you will be hard pressed to find a Large Cap Growth fund that doesn't have a sizeable position. The overlap in large cap funds is pretty significant. Again, all of this is my opinion only and can be argued, in fact they probably will be.
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