what's up guys how's your day going it's Mike and chipper hellooo in today's
video we're gonna be hunting down the top six performing Vanguard mutual funds
of all time so let's go
welcome to money in life TV where our goal is to help you improve your
financial position career and life alright guys thanks for joining me today
give me a moment while I hunt down the top six performing Vanguard funds of all
time ooh yeahh! be right back with y'all
okay guys that was a lot of research couple of things to point out before we
get started all the funds which are the six the six
funds I'm going to show you today they're all mutual funds I did not do
any research on ETFs because this video is about the six all-time best Vanguard
mutual funds I can totally do a video on the ETF's if you guys would like me to
just let me know in the comment section down below okay number one the first
thing to point out is that please note I am NOT a professional investor these
funds and all the research I did is of my own opinion and this is not to be
taken as investment advice what this video is for is if you do not have a lot
of time the research stocks yourself and meet your funds and that kind of stuff
or you're unsure of how to look at investments in that kind of thing this
video will at least help you identify some of an guard's best funds the second
thing I want to point out is there is no guarantee that the prior performance
will continue into the future now the funds we're looking at are some
of the oldest funds in Vanguard I think all the funds we're looking at are over
30 years old so there's a lot of performance history behind them which
helps me feel comfortable personally as an investor versus if something is
brand-new and it only has been out less than a couple years it's really hard to
know how it's gonna do long term the third thing I want to point out is that
these funds are actively managed which means that somebody is managing and
actively trading the funds within some of the stocks with inside this mutual
fund if the fund manager changes then obviously the mutual fund itself could
change so I just wanted to point some of these things out guys before we get
started so let's go ahead and dive right into this the fourth and final thing I
want to point out is please take the time to do your own research I cannot
guarantee that the funds I'm about to show you are gonna perform the same way
into the future nobody I don't know there's no way for you to
you and I don't know but just be aware of that but anyways with that being said
let's go dive right into these okay guys thanks for joining me
the first fun work of the six we're gonna be looking at is the vanguard
Wellington fun investor shares ticker symbol VW elx this my friends if you
want to see the oldest Vanguard fun in existence this is it am I'm good this is
the fun it's been around for 88 years holy crap that's a long time it has a
moderate allocation in regards to its category which I believe means it's very
well diversified in various sectors of the stock market so it's not just like
health care it's not just technology it's a very well mixed
yeah so this fund in general is 2/3 stocks and one-third bonds and it's been
as founded in 1929 can you guys believe that it's pretty crazy so let's just
pause in a minute what I did obviously is I took all the information from the
website of Vanguard and this is how I do a lot of my research even when I'm
looking at stocks or mutual funds whatever it is I'm looking at I like to
use an Excel document to pull in my research because that way I can easily
save it I can transfer it to different computers I can look at it wherever I'm
at so this is how I prefer to do my research
oh so let's look at rates of return so this is as of I think all this
information is as of June 2017 okay guys June 2017 I'm looking at this in August
but I believe a lot of this data it goes back to June of this year so obviously
you can look at this chart right here it shows you the one year performance
through your performance five year ten year etc overall an eight percent return
since inception which if you think about it the average return of the S&P 500
over the last 100 years is actually eight percent so this thing is right on
the money so this fund owns a lot of high quality
blue chip stocks and large companies if we scroll down you can see it owns
Microsoft JP morgen Comcast Chevron Bank of America
alphabet which is Google Intel etc it's got in terms of risk it's on a moderate
risk which means it's not super conservative
but it's not overly aggressive either so it's right in the range now this another
thing guys risk is very important okay if if a lot of the funds we're looking
at here they're probably at a moderate risk are above they're more aggressive
in nature because that's why they're the best performing there is a direct
correlation between risk and reward I'm sure many of you already know that but
just so you know if you're near retirement you might want to meet with a
financial advisor before considering these funds because maybe this might be
too much risk for you to take I don't know it depends on what you're
comfortable with but you have to know how much risk you feel comfortable
taking before diving right in okay let's getting back to it so minimum of
investments around $3,000 and this is what the graph looks like on Yahoo let
me zoom out a little bit since night since it goes back to this is as far as
Yahoo Finance goes back but as you can see it's got a very solid graph and from
what I can tell it looks like it's just gonna keep going up that's what it looks
like at the moment until something else changes but as you see guys on average
over the last 100 years you're gonna you can expect an 8% return on average and
the last 10 percent aren't me in the last 10 years you can expect around a 7%
return per year five years is about ten percent per year this is always changing
guys but to know that this has been around for 88 years and you're gonna
expect an 8% return that's pretty darn good just to point out the fees it's
very minimal it's only a quarter of a percent okay let's go on to the next one
guys okay Vanguard Morgan growth fund
investors shares VM our GX now all of these guys I will leave in the
description section below these ticker symbols so you can go back
and look them up yourself okay the Morgan Growth Fund so this
thing is made up of large growth domestic stocks so mainly stocks in the
states that's what they made my domestic right fund is 49 years old so it's been
around for a while it's been around the block a few times more okay so this year
and tooth are within from last year to now from so from June 2016 to June 2017
it's basically had a 20% return which is pretty stellar over three years its
average ten percent a year over five years about a fifteen percent return per
year ten years seven to eight percent since inception a ten percent average
annual rate of return pretty cool alright and on all these guys if you
look on the Vanguard website you if you click and find this fun on the Vanguard
website you can actually read about the fund and I highly encourage you to do so
because as a financial advisor recently told me you want to read this product
summary information because that helps you get an idea of what the fund manager
is thinking about all right so it's mate this fund is made up of 297 stocks the
one we were just looking at the Wellington fund is made up of 98 total
stocks but also notice the risk is a little higher meaning if the risk is
higher if the market goes down this is gonna go down faster what it's likely to
go down more than something with a lower amount of risk what does it own it owns
things like Apple Google Microsoft Facebook Amazon Visa Alibaba Priceline
group so a lot of technology stocks and this is the portfolio composition on
Vanguard website it doesn't have this information on all of them as you can
see this thing has 16% in consumer discretionary stocks it's mainly in
technology stocks right because all these are technical tech companies for
the most part so mainly tech and healthcare and consumer discretionary
but notice the chart it's a little choppy er than the last chart we looked
at on the Wellington fund and as you can see look at this guys if you remember
that the tech bubble of 2001 well look what this thing did when the tech bubble
burst this thing fell to the floor through the floor almost but now it's
very healthy its back up here but something to consider that
it does show if the market tanks this thing is gonna go down with it this is a
more aggressive fund so that is the Morgan the Vanguard Morgan growth fund
investor shares let's go on to the next one
Vanguard healthcare fund investor shares the GHC 8x okay healthcare industry so
this one's really sector specific buy-in by sector specific we're talking about
the healthcare sector the funds been around for 33 years which is one year
older than I am so this thing's been around longer than me
okay average annual performance since June since four in one year it's about
11 1/2 percent three years ten percent five years eighteen and a half ten years
eleven percent since inception this is really impressive
sixteen to seventeen percent average annual rate of return since inception
because healthcare is very important in the world we live in and that's why this
thing is so powerful this is probably the best performing mutual fund I have
to show you today of all of them alright low fee ratio of only 0.3 seven let's go
down here let's look at the portfolio composition it's made up of 76 stocks
look at mainly in biotech Healthcare distributors healthcare equipment
managed health care pharmaceuticals most of this stuff is farmed almost half of
the portfolios in pharmaceutical based companies and it owns things like
bristol-myers allergen United Healthcare Group which is an insurance company Eli
Lilly and Merck and just it goes on so forth and so forth and on and on so as
you can see this is what makes this fund up but notice notice the risk is at five
so this has this extreme amount of risk this is very aggressive but it has
performed at least in the past it has performed very well so honestly like on
average I think you could easily expect anywhere from 11 percent return to 16
percent return on average if you hold this thing long-term so like I said if
you go to the website in Vanguard you can read all about the product
summary of this mutual fund and this is what the graph looks like on this from
Yahoo Finance so it's had a pretty solid run it's cut back right here so it's
down in price a little bit so it might be it may be a good buying opportunity
depending on your opinion but that is the Vanguard healthcare fund investor
shares onto the fourth one all right so now we're looking at a Vanguard us
growth fund investor shares okay this is made up once again like the Morgan fund
this mate is made up of large growth domestic stocks it's got a fee ratio of
almost 1/2 percent and I forgot to put the age of the fund here but if you look
right here it says since 1959 so it's been around for over 50 years so in the
past year it's made about 19% rate of return in the last three years you can
expect 10% the last five years about 15% return per year 10-year average is about
8% and since inception is about 10% so I think just by looking at this you might
expect anywhere from you know an 8 to 10 percent rate of return if you hold this
thing long term based on his prior history this thing is made up of 152
stocks it's a 4 on the wrist scale so it's it's not completely aggressive but
it's a little bit more aggressive than moderate so keep risk in mind it's made
up primarily of consumer discretionary stocks it's made up of healthcare
companies information technology companies and here we go look at a third
of the portfolio is in companies like Google Facebook Microsoft MasterCard
PayPal Visa telogen Corp amount Amazon and what you're gonna find guys and I
think you'll agree with me if not it's totally fine to disagree with me but
what I found when I was doing my research the best all time performing
mutual funds usually were made up of technology stocks and healthcare stocks
because the human race he likes to continues progress in technology and
we're always concerned about our health and so in my opinion that's why these
things are so powerful and have performed so well over
these years as you see as you can guys can see most of these have a minimum
investment of about three thousand dollars and here is the graph on this
thing so notice you notice how a lot of it was in technology stocks well this is
the graph from Yahoo Finance going back to before 1985 and once again look at
this the tech bubble when the tech bubble burst look at how far this thing
fell this thing like I don't know went from looks like it went from like 46
bucks down to 10 ouch but obviously since then it's made quite
the recovery it still hasn't topped its all-time high but it could in the future
okay let's go on to the fifth one okay Vanguard Wesley income fund investor
shares vwi NX conservative allocation it's 57 years
old it has about 2% are less than a quarter
percent fee at the moment this is definitely a more conservative fund in
fact this is an income fund so this is if you're looking to achieve income from
investing in mutual funds this is one of the funds you might consider looking at
this thing has a about a one-year return of 5% three years around five seven five
years about 7 percent 10 years around 6 to 7 percent return and since exception
of 1970 which means it's 57 years old its average is about 10 percent are
close to 10 percent so if I'm looking at this and I'm just diving in at any given
point I can expect a 5 to 10 percent return realistically on this in my
opinion all right asset class it's balanced okay because it has a lot of
different funds our little eye sorry it's balanced because as holds a lot of
different stocks it has 63 total stocks and look how many bonds it has it has
nine hundred and ninety seven bonds in this thing which is what is helping
produce a lot of its income it's moderate on the risk scale so it's
definitely not aggressive but it's definitely not
super-conservative either minimum fee I mean sorry minimum investments $3,000
all of these have a $3,000 minimum investment if you go to Vanguard you can
read the product summary on this thing and it holds companies like Microsoft JP
Morgan or Chase Bank basically Philip Morris which is a cigarette company
Wells Fargo Johnson & Johnson Cisco Systems Pfizer Merck Dow Chemical Intel
etc this is what the graph looks like has a really healthy graph to be honest
from as far as a stark chart goes so look at all the dividend payments as
made throughout the years quite a few and you can see it's they had a pretty
healthy growth trend overall and and looks like it's gonna continue into the
future based on how this is going it has an upward trend okay guys let's look at
the sixth and final fund okay so now we are looking at the Vanguard Windsor fun
investor shares do not mix this up with the Wellington fund that was the other
fund with the W so PW and DX 59 years old so this thing is pretty old
fees of about less than a quarter percent and this thing's been poor
performing pretty well so over one year it's made 23 percent three years about
six or seven percent return five years is there out 14 to 15 percent average
annual return 10 years is around 5% and since its inception this is actually the
second highest rate of return since inception of all the six of these listed
11% so I think if you're looking at this if you're looking at investing in this I
think you could reasonably expect anywhere from a six to an 11 percent
return if your if you ask me okay what's this thing made up of okay domestic
stocks so a lot of domestic stocks in the u.s. very low expense ratios these
this is the advisor of the fund Wellington management is the advisor and
it looks like there's a second investment management company as well in
this okay let's go down here guys it's made up of 141 different stocks
and I just want to point out because I forgot to on the earlier ones is if you
go to the Vanguard website and you click on the mutual fund you can actually see
the entire list of holdings which as you saw my when I was going through my
research you can where the it's right if you let me back up because I cannot
speak alright so if you go back to the Vanguard website and you're looking at a
mutual fund I'm just gonna well I'm in one right now I'm in the Wellington fund
on the website but if you want to see what it holds you go down here to the
bottom of the page and go to portfolio holdings and that's how you can see
every single holding in this mutual fund now since this is actively all of these
are actively managed these the stocks in this mutual fund can change over time
like I said earlier so just keep that in mind but this is everything that makes
up this mutual fund so let me go back to my spreadsheet okay so top 10 largest
holdings Citigroup Bank of America American International Group
bristol-myers Broadcom MetLife United Health Group so it sounds like a lot of
financial stocks and which is that seems to be true because if I look at the
portfolio composition look at financial stocks 25 percent so a quarter of the
holdings of this mutual fund are in financial base stocks it has some
consumer staples consumes consumer discretionary stocks it's got some
utility companies and information technology doesn't have the prettiest
graph by any means but still one of the best performing Vanguard mutual funds of
all time for sure so it's had its ups and downs notice during the tech bubble
one of the tech bubble burst it didn't eat it too hard however because it holds
financial company stocks look how hard it got hit because remember when 2008
happened the banks got hit pretty hard before they got bailed out but from a
stock perspective they did get pretty hit pretty hard so this thing fell to
the floor it went from it looks like nineteen
dollars a share down to around nine dollars down here so it took a pretty
big hit but it looks to be doing fine now
alright guys these are what I found to be in my personal opinion to be the best
all-time six Vanguard mutual funds ever in existence and like I said as we've
seen all of these are all over 30 plus years old so you have a lot of data to
run on I just want to point out a couple of little things so as you know we
looked at this kind of chart which shows the average annual rate of return on
each of these mutual funds just so you know that if you go and browse the
Vanguard website you might see some of the funds that say since the inception
with higher average rates of return then then the ones listed but the other thing
too you have to consider I think of is that those funds have been around for a
much shorter period of time than all of these these have been around the longest
and I've had the highest rate of return that I could find on the Vanguard
website alright guys that is all I have for you today I'm gonna be launching a
website soon and soon as I launch it I will put it in the comment section down
below on this video of where you can go and find this excel document that I used
in the video that breaks down all the research I did on those six mutual funds
and so you can download it for yourself and you can look at the numbers for
yourself remember guys always do your own research on this consider consulting
with a financial advisor on your investments they truly are the ones who
will usually know mutual fund the best of anybody because that they know that
people who do the research on them right I mean that's these large investment
companies are the ones who do extensive research on these funds in the in what
stocks go into these things so always consider that but of course I know like
if you're like me I like to do my own investing but always do keep that in
mind or at least consider it alright guys thank you so much for
watching let me know if you found this video helpful if I could have done
anything better explain this better if I didn't explain something right be like
Mike get big dum-dum you didn't explain this correctly or can you tell me more
about this please drop a comment I'm so happy to respond I love talking
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they'll at least give them some funds to look at they can do their own research
and I want to leave you guys with this though that you know this video is
really not to promote just Vanguard I am NOT trying to promote Vanguard in any
way because I'm going to be doing a video in the feature that covers the
all-time best fidelity funds all-time best john hancock funds etc so don't
think I'm doing just promoting Vanguard because I'm really that's not my
intention here so just keep that in mind alright guys I love you thank you so
much for watching and thank you for your continued support and I will see you
guys in the next video peace
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