Moving from TRP healthcare to Vanguard healthcare we

Have a question about your personal investments? No matter how simple or complex, you can ask it here.
Post Reply
moneywise3
Posts: 286
Joined: Mon Nov 22, 2010 6:54 pm

Moving from TRP healthcare to Vanguard healthcare we

Post by moneywise3 » Sat Jul 15, 2017 8:52 pm

We have some funds in a Roth with TRP. We want to keep it in the healthcare sector fund but move to Vanguard. This would be easier to manage and lower ER 0.77 vs 0.34. Is there reason to believe TRP might do better than Vanguard in this case? Most of our portfolio is in index funds at Vanguard or wherever my current 401k is. Inputs appreciated.

mhalley
Posts: 4981
Joined: Tue Nov 20, 2007 6:02 am

Re: Moving from TRP healthcare to Vanguard healthcare we

Post by mhalley » Sat Jul 15, 2017 9:21 pm

The fund has outperformed in the past, but as with any managed fund, no one knows if it will continue. If you went with vanguard healthcare index, you could reduce the er even further, and I think it has outperformed the managed version.
Of course most do not recommend sector funds.

SrGrumpy
Posts: 298
Joined: Wed Aug 05, 2015 3:21 pm

Re: Moving from TRP healthcare to Vanguard healthcare we

Post by SrGrumpy » Sat Jul 15, 2017 9:25 pm

A big chunk of my IRA is in TRP Health and Sciences - and it has done very, very well for me - although I believe it was off a little last year. I don't care about expense ratios if they are well below 1%.

tibbitts
Posts: 6814
Joined: Tue Feb 27, 2007 6:50 pm

Re: Moving from TRP healthcare to Vanguard healthcare we

Post by tibbitts » Sat Jul 15, 2017 10:36 pm

I don't' follow the TRP fund any longer but at least at one time it contained much different securities than the Vanguard fund. You really have to look beyond the name of (especially) a managed fund to compare it to another one. Not saying one fund is or will be superior to the other, just that you can't assume they're the same because of the name.

billfromct
Posts: 469
Joined: Tue Dec 03, 2013 9:05 am

Re: Moving from TRP healthcare to Vanguard healthcare we

Post by billfromct » Sat Jul 15, 2017 11:44 pm

The Vanguard Healthcare managed fund returned 11.43%/year over the past 10 years with an ER of .37% while the Vanguard Healthcare ETF with an ER of .10% returned 11.13%/year over the past 10 years.

Pretty close.

I do have some Roth IRA money in the Vanguard Healthcare Mutual Fund.

I had some money in the Healthcare Fund (traditional IRA) in the late 90s through the late 2000s but when it got to 40%-45% of my traditional IRA allocation, I moved it out into other funds. I wish I had never moved out of the Healthcare Mutual Fund entirely, but I guess I learn from my mistakes.

bill

SrGrumpy
Posts: 298
Joined: Wed Aug 05, 2015 3:21 pm

Re: Moving from TRP healthcare to Vanguard healthcare we

Post by SrGrumpy » Sun Jul 16, 2017 12:02 am

tibbitts wrote:I don't' follow the TRP fund any longer but at least at one time it contained much different securities than the Vanguard fund. You really have to look beyond the name of (especially) a managed fund to compare it to another one. Not saying one fund is or will be superior to the other, just that you can't assume they're the same because of the name.
True. I believe T. Rowe Price has more of a biotech weighting than Vanguard's XLV. This would account for the former's 10-year return of 15.54 percent. You would definitely need to read the prospectuses of both funds.

moneywise3
Posts: 286
Joined: Mon Nov 22, 2010 6:54 pm

Re: Moving from TRP healthcare to Vanguard healthcare we

Post by moneywise3 » Mon Jul 17, 2017 9:57 am

Thank you all for the responses

Post Reply