I'm looking to invest $3000 in a fund and I've heard good things about Vanguard.
2007-09-03 06:12:20 · 8 answers · asked by awesomeness 2 in Business & Finance ➔ Investing
The Vanguard S&P 500 Index can be a great "core" holding in a well diversified portfolio.
The most important question you should be answering for yourself is: What is my "Asset Allocation" model. Once you decide that..... you find good low cost Mutual Funds to fit the model.
The vanguard S&P 500 Index is an excellant choice if you're looking for an unmanaged core holding. If it's your first investment, it's an excellant choice.
Good luck
2007-09-03 12:07:40 · answer #1 · answered by Common Sense 7 · 0⤊ 0⤋
Vanguard is a great company with good mutual funds. This particular fund is not among my favorites however for a couple of reasons. 1. it is capitialization weighted which means that 1/2 of your money is invested in about 25 very large companies and the rest in the other 475. Not a diversified investment. 2. It is comprised of only U S based companies. Also not very diversified. Among the Vanguard funds, I much prefer VHGEX, the Global Equity fund.
But there are several things you need to be aware of regarding VHGEX. 1. It is not an index fund and therefore your potential tax liability is going to be greater because the realized capital gains will be greater. 2. the expense ratio is about 3.5x greater than the 500 index fund. 3. My critique of being capitalization weighted also applies to VHGEX. The top 10 holdings make up 15% of the portfolio as opposed to 20% for the 500 index fund. In the case of VHGEX, it is not capitalization weighting but rather fund management weighting.
2007-09-03 08:41:41 · answer #2 · answered by Anonymous · 0⤊ 1⤋
Vanguard is known throughout the industry for their low fund expenses. That is important because over time, even a small percentage can equate to a big difference in total return. A S&P fund is going to be comprised of the same 500 stocks regardless of which fund company you invest in, so investing in one with low expenses is key.
2007-09-03 06:21:33 · answer #3 · answered by marathonbdogg 2 · 0⤊ 0⤋
I have the same S&P Index fund through Vanguard and I am happy with the company and the fund so far.
2007-09-03 19:22:01 · answer #4 · answered by Anonymous · 0⤊ 0⤋
you have heard correctly...vanguard is a great mutual fund company...you cannot go wrong with vanguard or fidelity..both have the lowest fees and both have the widest selection.
the sp 500 has averaged 10% yearly growth over the past 25 years...great average...and vanguard only charges 0.18%..this cannot be beat
2007-09-03 13:28:02 · answer #5 · answered by zioncanyon 3 · 0⤊ 0⤋
I think that it is a good way to start investing. Vanguard has low fees and it is a good way to own good companies.
2007-09-03 06:33:06 · answer #6 · answered by RHJ10 2 · 0⤊ 0⤋
Vanguard is good but would be better off with the ETF equivalent of it.
2007-09-03 11:23:53 · answer #7 · answered by Anonymous · 0⤊ 0⤋
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2007-09-03 06:41:11 · answer #8 · answered by waseem khan 1 · 0⤊ 0⤋