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Chicken 
USA Fan
Jackassistan
Member since Aug 2003
3529 posts
| What are a few strong Vanguard funds to get into... (Posted on 1/4/13 at 11:31 am)
I want one or two good stock funds and one or two bond fonds...within each fund family, I don't want too much overlap.
thoughts?
is the Index 500 fund still the go-to fund for stock diversification, or do you like the Total Stock Market index fund?
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saving$ 
LSU Fan
Member since Nov 2012
34 posts
| re: What are a few strong Vanguard funds to get into... (Posted on 1/4/13 at 11:54 am to Chicken)
Total Stock Market captures the majority of the market (large, med, and small cap), so it provides more diversification than the S&P500 (large cap). It is also a tax efficent fund.
For your bond fund you need to determine the credit quality you want.
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Maniac979
LSU Fan
The Great State of Texas
Member since Jan 2012
400 posts
| re: What are a few strong Vanguard funds to get into... (Posted on 1/4/13 at 11:58 am to Chicken)
(no message)
This post was edited on 1/12 at 8:49 pm
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Gorilla Ball
LSU Fan
Red Stick
Member since Feb 2006
1741 posts
| re: What are a few strong Vanguard funds to get into... (Posted on 1/4/13 at 12:09 pm to Chicken)
ive been in the capital opportunity funds for yrs
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foshizzle
LSU Fan
Member since Mar 2008
25486 posts
 Online
| re: What are a few strong Vanguard funds to get into... (Posted on 1/4/13 at 12:14 pm to Chicken)
Most of the indexes are fine. For US stocks I go with one that tracks the Wilshire 5000 or something like it just so you get more exposure to everything.
For bonds it's a something of a conundrum. I believe that rates will eventually rise but nobody really knows when, so I picked a corporate bond index with a duration 5-10 years long. I'm not willing to get into 30 year funds but that is completely my own opinion. The current market rate thinks I'm an idiot and there is little risk to going long.
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Dusty Bottoms
LSU Fan
Guadalajara
Member since Nov 2006
752 posts
| re: What are a few strong Vanguard funds to get into... (Posted on 1/4/13 at 12:59 pm to Chicken)
Total Stock Market (VTSMX) 60%
Total International Stock (VGTSX) 20%
Total Bond Market (VBMFX) 20%
Those 3 with the allocation up to you. No overlap and very good coverage of global equity and US bond market. Bonds are naturally weighted heavily mid-term. Because all 3 are indexed funds, capital gains are minimal (assuming taxable investment account).
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Maniac979
LSU Fan
The Great State of Texas
Member since Jan 2012
400 posts
| re: What are a few strong Vanguard funds to get into... (Posted on 1/4/13 at 1:34 pm to Dusty Bottoms)
(no message)
This post was edited on 1/12 at 8:48 pm
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Paul Allen
LSU Fan
Baton Rouge, LA
Member since Nov 2007
19677 posts
| re: What are a few strong Vanguard funds to get into... (Posted on 1/4/13 at 1:42 pm to Maniac979)
Lower expense ratio
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wegotdatwood 
Arkansas Fan
Member since Aug 2009
14176 posts
| re: What are a few strong Vanguard funds to get into... (Posted on 1/4/13 at 1:56 pm to Chicken)
I bought VDAIX a few weeks ago.
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Maniac979
LSU Fan
The Great State of Texas
Member since Jan 2012
400 posts
| re: What are a few strong Vanguard funds to get into... (Posted on 1/4/13 at 1:58 pm to Paul Allen)
(no message)
This post was edited on 1/12 at 8:47 pm
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saving$
LSU Fan
Member since Nov 2012
34 posts
| re: What are a few strong Vanguard funds to get into... (Posted on 1/4/13 at 2:38 pm to Maniac979)
quote:
VTI - 0.05
VTSMX - 0.17
VTSAX-0.06
VTSMX - $3,000 min
VTSAX- $10,000 min
Using an ETF vs. Mutual Fund is for another thread.
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Maniac979
LSU Fan
The Great State of Texas
Member since Jan 2012
400 posts
| re: What are a few strong Vanguard funds to get into... (Posted on 1/4/13 at 2:47 pm to saving$)
(no message)
This post was edited on 1/12 at 8:47 pm
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Dusty Bottoms
LSU Fan
Guadalajara
Member since Nov 2006
752 posts
| re: What are a few strong Vanguard funds to get into... (Posted on 1/4/13 at 4:55 pm to Maniac979)
quote:
Why do you recommend a mutual fund over an ETF?
I shouldn't have. I began investing before ETF's were mainstream and just never converted. And knowing I can't buy/sell on a whim actually helps keep me honest. Am I naive? Probably. 
I am in Admiral class, so I do at least get the benefit of lower fees.
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Maniac979
LSU Fan
The Great State of Texas
Member since Jan 2012
400 posts
| re: What are a few strong Vanguard funds to get into... (Posted on 1/4/13 at 4:58 pm to Dusty Bottoms)
(no message)
This post was edited on 1/12 at 8:45 pm
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matthew25 
Ole Miss Fan
Member since Jun 2012
1677 posts
| re: What are a few strong Vanguard funds to get into... (Posted on 1/4/13 at 11:43 pm to Maniac979)
Dividends are reinvested in a mutual fund. ETF - no reinvestment. Makes a ton of difference.
Here are my equity (stock) funds:
VDAIX (dividend appreciation)
VGHAX (healthcare)
VFIAX (S&P 500)
VDIGX (dividend growth)
VEIPX (equity income)
FLPSX (Fidelity low-price stocks).
Balanced funds (i.e., 60% stock and 40% fixed):
Wellington (VWELX)
Wellesley (VWINX)
Target 2010 (VTENX)
Target retirement income (VTINX)
Fidelity 20% stock (FASIX)
Fixed income (Bonds):
VIPSX and VWITX (both listed on "Money Top 70"list
VWESX (long term investment grade)
VFSTX (short term " " )
PTCIX (government bond)
FLTMX (muni)
FSICX (multisector bond)
some more to consider - VHDYX, SMVLX and BBTEX (equity), PTTDX, SXFIX and PAUIX (bond)
I have 18 funds, and experts say you should only have 6-12 so I need to do some research.
This post was edited on 1/5 at 7:42 pm
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matthew25
Ole Miss Fan
Member since Jun 2012
1677 posts
| re: What are a few strong Vanguard funds to get into... (Posted on 1/5/13 at 12:02 am to matthew25)
As stated in another thread, I bought the Vanguard 500 fund in 1997 for $20,000. Now, nearly 15 years later, the value is a bit over 30K.
Needless to say, it has not been a stellar performer over the years.
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LSUsuperfresh
LSU Fan
Baton Rouge
Member since Oct 2010
2043 posts
| re: What are a few strong Vanguard funds to get into... (Posted on 1/5/13 at 8:53 am to matthew25)
I've had Wellesley Income for 25 yrs and I still like it. Intl value, VWO, and equity Income I'm also in now. Is that a sentence?
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Maniac979
LSU Fan
The Great State of Texas
Member since Jan 2012
400 posts
| re: What are a few strong Vanguard funds to get into... (Posted on 1/5/13 at 9:16 am to matthew25)
(no message)
This post was edited on 1/12 at 8:44 pm
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matthew25
Ole Miss Fan
Member since Jun 2012
1677 posts
| re: What are a few strong Vanguard funds to get into... (Posted on 1/5/13 at 7:41 pm to Maniac979)
ETF does not reinvest in itself, as does a mutual fund, according to the Scottrade folks.
Do you have backup that it does?
As far as low cost, the cost to trade a MF is $17 and stock/ETF is $7. But ask for a bunch of free trades (or you will trade directly with Vanguard, or TD, etc.) and you get them for a limited time.
VFIAX - thanks for correction.
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Teddy Ruxpin
LSU Fan
New Orleans, LA
Member since Oct 2006
12583 posts
Online
| re: What are a few strong Vanguard funds to get into... (Posted on 1/5/13 at 7:49 pm to matthew25)
I have a vanguard ETF portfolio with Vanguard and the dividends are definitely reinvested
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