archbish99 wrote: Langkawi wrote:
genjix wrote:ohhhh... ok nm, i thought it was the typical 10k.
10K is the minumum only for index funds.
Interestingly, their new short-term TIPS fund is
an index, and therefore its Admiral shares start at $10k. I wonder why the full-term TIPS fund isn't simply an index -- are they actively moving up and down the yield curve in search of better return?
They have said publicly that they do try to get slightly better returns by active management... it was the fund's previous manager, what was his name, Vollmer, Volcker... Volpert! Kenneth Volpert who said that. In reality, the fund has tracked the TIPS index almost perfectly. Morningstar is showing me some teaser snippets of premium content
in which a David Falkof says "Vanguard Inflation-Protected Securities succeeds with a straightlaced approach. Manager Gemma Wright-Casparius, who became the fund's lead manager in early 2012, keeps this fund's portfolio tightly aligned with its benchmark, the Barclays U.S. TIPS..." and "Management runs the fund closely in line with its benchmark, the Barclays U.S. Treasury Inflation Protected Securities Index. While it's not an index fund, management prefers to let the fund's low expense..."
But if not being an index makes the entry point $50,000 instead of $10,000, it's a pity.
There have actually been several times I've wonder "why Vanguard doesn't just..." do some seemingly obvious thing, and, in due course, be gratified when they did. It wouldn't surprise me if they do revamp it to be an index fund someday, and I hope they do.
Annual income twenty pounds, annual expenditure nineteen nineteen and six, result happiness; Annual income twenty pounds, annual expenditure twenty pounds ought and six, result misery.