Vanguard municipal bond fund tracking error

Tracking error is one means of measuring active manager performance against an appropriate market index. Vanguard’s national municipal bond funds are actively managed, defined asset class funds. The funds include four municipal bond funds structured across four bond maturity levels:

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Posted in Bonds, Mutual funds

Vanguard active government bond fund tracking error

The following tables provide historical annual tracking error data for Vanguard actively managed bond funds. Tracking error is one means of measuring active manager performance against an appropriate market index. Vanguard’s U.S. government bond funds are actively managed, defined asset

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Posted in Bonds, Market statistics

Vanguard bond index fund tracking error

The following tables provide tracking error data for Vanguard bond index funds. Tracking error is the ultimate measure of judging an index fund manager’s performance. Since bond indexes can include huge numbers of illiquid bonds, replicating an index is often

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Posted in Bonds, indexing, Vanguard

RTP, NC Chapter Meetings in 2016

The Research Triangle Park Bogleheads®,  North Carolina Local Chapter held three meetings in 2016.  Bogleheads forum member Steve Thorpe recaps these meetings in this  guest article. RTP, NC Chapter Meeting 9:30 AM Sat April 23, 2016 We had another fun

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Investing in the World – Part 3

This article is the third part of a study looking at global and domestic investing from the perspective of local investors.

In Part 1 and Part 2, we took the position of a local investor in one of 16 countries of interest, and we explored somewhat extreme positions of either investing 100% global or 100% domestic. It is now time to try a more balanced view of things, and study portfolios mixing global and domestic investments. We will notably look at the mitigation this could bring to the countries having fared the worst, but also consequences for countries having fared better. Of course, it is easy to look at such numbers in hindsight and draw hasty conclusions, so let’s keep in mind that nobody could have predicted winners and losers ahead of time.

Posted in Asset allocation, international stocks, Investing, Market history, Market statistics, Portfolios

Investing in the World – Part 2

Many North American investors tend to look carefully at historical returns in the US and in Canada, and draw various conclusions. Occasionally, some references are made to Japan and the UK, and few people look any further. The world changes though. The UK was undoubtedly the world economic leader at the end of the 19th Century, while the US clearly dominates nowadays. Japan was on a roll, had a bigger market capitalization than the US in the 80s, and yet badly faltered since then. The world changes in ways we cannot predict, and it would be naive to assume that several decades from now, the situation will be similar to today’s environment. One thing we can do to get some perspective, is to try to draw some analogies with what happened in a larger sample of countries.

This article focuses on the historical returns from 16 developed countries, looking from the perspective of a local investor, and assuming a strong home country bias to begin with (i.e. solely using domestic stocks and domestic bonds). We will look at more diversified portfolios mixing domestic and global investments in Part 3.

Posted in Asset allocation, international stocks, Investing, Market history, Market statistics, Portfolios

Under the hood – Vanguard US stock index funds

Vanguard issues annual reports for the firm’s international and global index funds on October 31 of each year. The reports provide information that can highlight some of the underlying conditions affecting a fund’s future capital gains distribution outlook; an indication of a fund’s foreign tax credit; the level of security lending in each fund, and […]

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Posted in indexing, Market statistics, Vanguard

Vanguard Bond ETFs: a growth story

Vanguard introduced exchange-traded funds to bond investors in 2007 when they added an ETF share class to four bond index funds. In 2008 they added an extended maturity treasury fund consisting of zero coupon bonds. This new fund offered ETF

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Investing in the World – Part 1

True Bogleheads know the power of diversification. And yet, many such investors (including John Bogle himself!) are reluctant to diversify beyond domestic investments. Japanese investors could have perceived the same thing, with a remarkable run in the 80s in terms of market capitalization (nearly half of the world, higher than the US at some point) and in terms of stock returns. Unfortunately for Japan, as discussed in a previous blog article, this impressive success was followed by the worst equity crisis in modern history. This study about Japan also showed how some level of international diversification would have helped a local investor to mitigate this extremely painful crisis.

This raised an interesting question. Could one simply invest in the world, using global stocks and global bonds? And if this proves unsatisfying, is there a proper middle ground between domestic and global allocations?

Posted in Asset allocation, international stocks, Investing, John Bogle, Market history, Market statistics, Portfolios

Vanguard International ETFs: a growth story

Vanguard has an extensive selection of international index exchange-traded funds (ETFs). The firm has added ETF share classes to a number of its long standing international funds (Europe, Pacific, Emerging Markets, Developed Markets, and Total International). It has also introduced

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Posted in international stocks, Vanguard
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