2020 US stock market index returns

The table below provides US stock market returns for 2020 as measured by major index providers. 2020 returns Note that index providers have differing metrics for defining size and style dimensions, and employ differing transition metrics for stocks migrating from size and style categories. These differences are reflected in the dispersion of returns in each … Read more

Three fund portfolio using inflation indexed bonds – 2020 update

The Taylor Larimore three-fund portfolio is a portfolio design consisting of three “total” market index funds covering the US stock market, the international stock market, and the US taxable investment grade bond market.  Newspaper columnist Scott Burns has suggested a three fund portfolio (called the Margarita portfolio) that uses inflation-indexed treasury bonds for the bond allocation … Read more

Vanguard stock index fund turnover in 2019

Vanguard’s suite of U.S. stock index funds are benchmarked to CRSP indexes. In addition, Vanguard offers sets of U.S. exchange-traded funds benchmarked to Russell and S&P indexes. In 2019 the CRSP index funds had lower turnover rates  in most style categories when compared to the Russell and S&P funds. This continues a trend established

Index fund net security lending income (2019)

Index fund investors can select low cost index funds from large, well-known firms such as Fidelity, Schwab, and Vanguard. One aspect of index fund investing involves the income generated by a fund lending its securities to institutional borrowers. A fund’s Statement of Additional Information to a fund prospectus itemizes security lending income and expenses so … Read more

Index fund net security lending income (2018)

Index fund investors can select low cost index funds from large, well-known firms such as Fidelity, Schwab, and Vanguard. One aspect of index fund investing involves the income generated by a fund lending its securities to institutional borrowers. A fund’s Statement of Additional Information to a fund prospectus itemizes security lending income and expenses so … Read more

Under the hood – Vanguard international index funds in 2019

Vanguard issues annual reports for the firm’s international and global index funds on October 31 of each year.[1] 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 dividend distributions and foreign tax credit; the level of security lending in … Read more

Vanguard treasury bond index fund tracking error

The following tables provide tracking error data for Vanguard treasury bond index funds. Tracking error is the ultimate measure of judging an index fund manager’s performance. Vanguard offers four treasury bond index funds, three nominal treasury bond funds, covering short-term, intermediate-term, and long-term treasury bonds, and one short-term inflation indexed bond fund. The nominal bonds … Read more

2019 US stock market index returns

The table below provides US stock market returns for 2019 as measured by major index providers. 2019 returns Note that index providers have differing metrics for defining size and style dimensions, and employ differing transition metrics for stocks migrating from size and style categories. These differences are reflected in the dispersion of returns in each … Read more

Vanguard stock index fund turnover in 2018

Vanguard’s suite of U.S. stock index funds are benchmarked to CRSP indexes. In addition, Vanguard offers sets of U.S. exchange-traded funds benchmarked to Russell and S&P indexes. In 2015 the CRSP index funds had lower turnover rates  in most style categories when compared to the Russell and S&P funds. This continues a trend established

Dividend Yield: Value vs. Growth

John Bogle, in various writings, argued that his decision to create value and growth index funds was based on meeting the tax, risk, and return needs of investment clienteles during their investment life cycles. Growth index funds were designed for younger investors who “focused on wealth accumulation, were seeking tax-efficiency, and were willing to assume … Read more