I believe I understand the psychological concerns behind the mantra among many to try to stick close to your investment strategy fundamentals—especially when it comes to allocations. However, what are the different schools of thought about making changes within those allocations?
For example, maintaining one’s fixed income allocation percentage but being open to changing those funds in which to invest?
Case in point: VUSXX vs VBTLX.
First, is this comparison on average Returns even accurate??
https://investor.vanguard.com/tools-cal ... usxx,vbtlx
(I ask because I realize that these are pretty different funds—and there’s a message near top of the comparison page: “The investments or benchmarks you chose fall into different investing categories. This comparison may not provide complete or accurate results.”)
If the comparisons are correct, then at least I was surprised to see VUSXX avg. annual total returns beat the broader VBTLX index for the last ten years.
Granted, VBTLX does win out for total returns when tracking back to inception, though perhaps that’s not even fair since VUSXX shows an earlier inception date here.
As suggested by my very opening questions, I bring up this specific case of comparison because I’ve been putting funds for (other) shorter term goals in VUSXX, and lately I’m wondering about its long-term investment potential, too.
For example, maintaining one’s fixed income allocation percentage but being open to changing those funds in which to invest?
Case in point: VUSXX vs VBTLX.
First, is this comparison on average Returns even accurate??
https://investor.vanguard.com/tools-cal ... usxx,vbtlx
(I ask because I realize that these are pretty different funds—and there’s a message near top of the comparison page: “The investments or benchmarks you chose fall into different investing categories. This comparison may not provide complete or accurate results.”)
If the comparisons are correct, then at least I was surprised to see VUSXX avg. annual total returns beat the broader VBTLX index for the last ten years.
Granted, VBTLX does win out for total returns when tracking back to inception, though perhaps that’s not even fair since VUSXX shows an earlier inception date here.
As suggested by my very opening questions, I bring up this specific case of comparison because I’ve been putting funds for (other) shorter term goals in VUSXX, and lately I’m wondering about its long-term investment potential, too.
Statistics: Posted by Maris61 — Sat Sep 07, 2024 8:43 pm