That is likely to be beneficial for older retirees, though of course that outcome is not certain. Vanguard’s glide path, while it’s similar to Fidelity’s, gives retirees age 80 and up 10% more equities (30%), compared with 20% at Fidelity. Vanguard’s lower cost means higher returns for shareholders. Start with expenses: Vanguard charges 0.08% annually vs. Their equity portfolios are very similar. Response: As long as you stick with Fidelity’s index target-date funds (instead of its actively managed ones), I think neither choice is bad - and I don’t have a financial relationship with either Vanguard or Fidelity. Question 3: If I have the choice between a target-date fund at Vanguard or Fidelity, which is better?
But their managers methodically concentrate on quality fundamentals. These are not index funds, and they’re newer than Vanguard’s entries. Two with a lot of long-term potential are Avantis Small Cap Value If you have a brokerage account at Vanguard, you have access to many other small-cap value ETFs. Source: Merriman Financial Education Foundation The price/book ratio measures how much an investor will pay per share for the company’s book value a lower ratio indicates a more deeply discounted price. The table below shows those metrics for three Vanguard small-cap value funds.
#COMMUNICATION SERVICES ETF VANGUARD PLUS#
It owns the best combination of companies with smaller capitalizations, lower prices relative to book value plus higher quality corporate fundamentals like cash flow and profits. But if I had to choose one for the long haul, I’d go for the Vanguard S&P Small-Cap 600 Value ETFĪmong Vanguard’s small-cap value ETFs, VIOV most closely follows the findings of academic researchers who have identified the key characteristics of small-cap value stocks. The research can lead you down many byways. Question 2: What is Vanguard’s best small-cap value ETF? 28, VOO’s year-to-date return was 15.5%, VTI’s 14.8%.īottom line: Over the long haul, your choice between these funds is unlikely to make a huge difference. Hypothetical index returns from 1928 through 2022 show a compound return of 9.8% for the S&P 500įrom 1970 through 2022, the returns of the two indexes were virtually identical at 10.4%.Īs with most investments, short-term comparisons show more differences. At first glance, the total market value seems like it should be the obvious winner, as it includes some of the wide diversification that is almost universally recommended by investment experts.īut the long-term evidence does not necessarily support that view. This advertisement has not been reviewed by the Monetary Authority of Singapore.Response: This can be confusing. In the event that you choose not to obtain advice from a qualified financial adviser, you should assess and consider whether the investment product is suitable for you before proceeding to invest and we do not offer any advice in this regard unless mandated to do so by way of a separate engagement. You may wish to obtain advice from a qualified financial adviser, pursuant to a separate engagement, before making a commitment to purchase any of the investment products mentioned herein. A copy of the prospectus can be obtained from the issuer or PSPL, or online at You should read the prospectus and product highlights sheet before deciding to subscribe for units in the respective fund. Past performance figures as well as any projection or forecast used in this publication are not necessarily indicative of future or likely performance of any unit trust. The value of the units in any fund and the income from them may fall as well as rise. Unit trusts distributed by Phillip Securities Pte Ltd (“PSPL”) are not obligations of, deposits in, or guaranteed by, PSPL or any of its affiliates. Investments are subject to investment risks including the possible loss of the principal amount invested. Accordingly, no warranty whatsoever is given and no liability whatsoever is accepted for any loss arising whether directly or indirectly as a result of your acting based on this information.
It does not have any regard to your specific investment objectives, financial situation or any of your particular needs. This is provided to you for general information only and does not constitute a recommendation, an offer or solicitation to buy or sell the investment product mentioned.
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