VPMAX is certainly not pummeled.
Pummeled is a strong word for sure - when a fund like VPMAX has outflows of 4.4% (~$77 billion under management). Quote here https://www.morningstar.com/funds/most- ... tf-flows-2We have had PRIMECAP for decades. We used to add the annual max ($25k per account, if memory serves), but haven’t done so since moving to Schwab. I don’t follow it closely, but I think it does okay. I surely don’t feel pummeled.The last time I checked, the Vanguard Primecap fund (VPMAX) was up 4.26% YTD, as compared to the Vanguard 500 index fund (VFIAX), up 2.74% YTD. VPMAX underperformed VFIAX in 2024, but it's too early to say that VPMAX will underperform again this year.
"Primecap, this is the original Primecap, lost... $3.4 billion over those six months. Primecap Core lost around $950 million, close to a billion dollars over that period. So again, they’re struggling a little bit. This isn’t something that threatens the viability of the funds. These are very big funds, so they can absorb that a little bit, but it is something to keep an eye on, and we’re watching.
And the other important thing with flows is you think about capital gains distributions because a lot of that can trigger managers to have to sell positions. Hasn’t been a big problem so far, but again, something worth keeping an eye on if you are invested in those funds."
But of course what matters to us who are still in it are the potential Cap Gains hits we'll see going forward. VPMAX already pays out large Cap Gains annually - so if these outflows culminate in higher Cap Gains, one may want to prepare. I still buy into VPMAX, but now do so within tax advantaged accts. I still have my original purchases from the 90s and the oughts, which are a substantive part of my folio. So, while it does bear watching, there really isn't anything to be done since I'm sitting on large capital gains since then and am locked in for the ride.
Statistics: Posted by sperry8 — Mon Mar 10, 2025 1:09 am