Vanguard Life Strategy Moderate Growth VSMXG

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Topic Author
harrington
Posts: 183
Joined: Tue Jun 21, 2011 9:09 am

Vanguard Life Strategy Moderate Growth VSMXG

Post by harrington » Thu Jan 19, 2012 7:30 am

I own Life Strategy Moderate Growth and Wellington and I am not thrilled with the performance of the Life Strategy Fund. I went with it because it's pretty much an all in one fund and was recommended by a Vanguard Rep. 50/50 split in these two funds. Would love some opinions.

rkhusky
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Re: Vanguard Life Strategy Moderate Growth VSMXG

Post by rkhusky » Thu Jan 19, 2012 8:26 am

Seems like a reasonable portfolio if you want a 60/40 stock/bond mix, with 20% of equities in foreign stocks.

It's interesting that Morningstar lists a 20% portion of Asset Allocation in VSMXG, while Vanguard has no mention of it.

maj
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Re: Vanguard Life Strategy Moderate Growth VSMXG

Post by maj » Thu Jan 19, 2012 8:40 am

If you want a simple portfolio which includes total bond market and global stock markets diversification for 50%,
and blue chip dividend paying stocks and high quality corporate bonds for 50%,
what's not to like?

The fact that one of the funds is currently disappointing you, and the other is pleasing you, is the precise reason why you have the current allocation.

The only question, for me, is whether or not you are a Buffet "forever" investor or a short-term trader?

The key factor is to keep the balance at 50%-50% by adding new monies to the fund which is performing less well--that is how you buy low, relatively speaking.

peace

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anthau
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Re: Vanguard Life Strategy Moderate Growth VSMXG

Post by anthau » Thu Jan 19, 2012 8:59 am

rkhusky wrote:It's interesting that Morningstar lists a 20% portion of Asset Allocation in VSMXG, while Vanguard has no mention of it.
Vanguard is dropping Asset Allocation as a holding in the LifeStrategy funds for an all-index approach. Link.
Best, | | Anth

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IlikeJackB
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Re: Vanguard Life Strategy Moderate Growth VSMXG

Post by IlikeJackB » Thu Jan 19, 2012 9:16 am

anthau wrote: Vanguard is dropping Asset Allocation as a holding in the LifeStrategy funds for an all-index approach. Link.
The Asset Allocation fund was terrible. The LifeStrategy funds will be much better going forward without it. By all means keep your LifeStrategy Moderate Growth fund.
"Do what you will, the capital is at hazard." Justice Samuel Putnam, Harvard College vs Amory, 1830. The "Prudent Man Rule."

rkhusky
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Re: Vanguard Life Strategy Moderate Growth VSMXG

Post by rkhusky » Thu Jan 19, 2012 9:37 am

anthau wrote: Vanguard is dropping Asset Allocation as a holding in the LifeStrategy funds for an all-index approach. Link.
It appears that they've already made the switch.

YDNAL
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Re: Vanguard Life Strategy Moderate Growth VSMXG

Post by YDNAL » Thu Jan 19, 2012 9:46 am

harrington wrote:I own Life Strategy Moderate Growth and Wellington and I am not thrilled with the performance of the Life Strategy Fund. I went with it because it's pretty much an all in one fund and was recommended by a Vanguard Rep. 50/50 split in these two funds. Would love some opinions.
Harrington,

There is duplication/overlap in owning these 2 Funds and it depends on how YOU wish to invest.
  1. Life Strategy Funds are now (recently) ALL Index. For investors looking for a simple and Indexed approach to investing, VSMGX is a great option in tax-advantaged accounts. Here's LS Mod Growth.
    Vanguard wrote:1 Vanguard Total Stock Market Index Fund Investor Shares 41.9%
    2 Vanguard Total Bond Market II Index Fund Investor Shares* 40.2%
    3 Vanguard Total International Stock Index Fund Investor Shares 17.9%
    Total — 100.0%
    https://personal.vanguard.com/us/funds/ ... st=tab%3A2
  2. The duplication/overlap comes from owning Wellington.
    1. All Large Cap holdings (Large Value overweight) in Wellington are included in Total Stock Market - so an overweight to Domestic Large Caps by owning Wellington.
    2. Investment Grade (Corporate) Bonds in Wellington are represented in Total Bond Market - so an overweight to Corporate Bonds by owning Wellington.
Is this what YOU want?
Landy | Be yourself, everyone else is already taken -- Oscar Wilde

Topic Author
harrington
Posts: 183
Joined: Tue Jun 21, 2011 9:09 am

Re: Vanguard Life Strategy Moderate Growth VSMXG

Post by harrington » Thu Jan 19, 2012 10:07 am

YDNAL wrote:
harrington wrote:I own Life Strategy Moderate Growth and Wellington and I am not thrilled with the performance of the Life Strategy Fund. I went with it because it's pretty much an all in one fund and was recommended by a Vanguard Rep. 50/50 split in these two funds. Would love some opinions.
Harrington,

There is duplication/overlap in owning these 2 Funds and it depends on how YOU wish to invest.
  1. Life Strategy Funds are now (recently) ALL Index. For investors looking for a simple and Indexed approach to investing, VSMGX is a great option in tax-advantaged accounts. Here's LS Mod Growth.
    Vanguard wrote:1 Vanguard Total Stock Market Index Fund Investor Shares 41.9%
    2 Vanguard Total Bond Market II Index Fund Investor Shares* 40.2%
    3 Vanguard Total International Stock Index Fund Investor Shares 17.9%
    Total — 100.0%
    https://personal.vanguard.com/us/funds/ ... st=tab%3A2
  2. The duplication/overlap comes from owning Wellington.
    1. All Large Cap holdings (Large Value overweight) in Wellington are included in Total Stock Market - so an overweight to Domestic Large Caps by owning Wellington.
    2. Investment Grade (Corporate) Bonds in Wellington are represented in Total Bond Market - so an overweight to Corporate Bonds by owning Wellington.
Is this what YOU want?
This is all long term money and I probably will not be touching it. Do you feel it might be worth it to sell Wellington and be 100% in Life Strategy?? I do like the all in one approach.

YDNAL
Posts: 13774
Joined: Tue Apr 10, 2007 4:04 pm
Location: Biscayne Bay

Re: Vanguard Life Strategy Moderate Growth VSMXG

Post by YDNAL » Thu Jan 19, 2012 10:17 am

harrington wrote:
YDNAL wrote:
harrington wrote:I own Life Strategy Moderate Growth and Wellington and I am not thrilled with the performance of the Life Strategy Fund. I went with it because it's pretty much an all in one fund and was recommended by a Vanguard Rep. 50/50 split in these two funds. Would love some opinions.
Harrington,

There is duplication/overlap in owning these 2 Funds and it depends on how YOU wish to invest.
  1. Life Strategy Funds are now (recently) ALL Index. For investors looking for a simple and Indexed approach to investing, VSMGX is a great option in tax-advantaged accounts. Here's LS Mod Growth.
    Vanguard wrote:1 Vanguard Total Stock Market Index Fund Investor Shares 41.9%
    2 Vanguard Total Bond Market II Index Fund Investor Shares* 40.2%
    3 Vanguard Total International Stock Index Fund Investor Shares 17.9%
    Total — 100.0%
    https://personal.vanguard.com/us/funds/ ... st=tab%3A2
  2. The duplication/overlap comes from owning Wellington.
    1. All Large Cap holdings (Large Value overweight) in Wellington are included in Total Stock Market - so an overweight to Domestic Large Caps by owning Wellington.
    2. Investment Grade (Corporate) Bonds in Wellington are represented in Total Bond Market - so an overweight to Corporate Bonds by owning Wellington.
Is this what YOU want?
This is all long term money and I probably will not be touching it. Do you feel it might be worth it to sell Wellington and be 100% in Life Strategy?? I do like the all in one approach.
Harrington,

IF you are NOT interested in overweights (as I showed) and want a (1) simple and (2) ALL Indexed 42/18/40 Domestic/Foreign/Bond allocation, then LS Moderate Growth VSMGX is the way to go.

Note: 42/18 in Stocks means 70/30 Domestic/Foreign.
Landy | Be yourself, everyone else is already taken -- Oscar Wilde

rkhusky
Posts: 7871
Joined: Thu Aug 18, 2011 8:09 pm

Re: Vanguard Life Strategy Moderate Growth VSMXG

Post by rkhusky » Thu Jan 19, 2012 2:36 pm

YDNAL wrote:
harrington wrote: Harrington,

IF you are NOT interested in overweights (as I showed) and want a (1) simple and (2) ALL Indexed 42/18/40 Domestic/Foreign/Bond allocation, then LS Moderate Growth VSMGX is the way to go.

Note: 42/18 in Stocks means 70/30 Domestic/Foreign.
If you want your portfolio to automatically become more conservative over time, than you should look at the Target Retirement funds. If you like the 42/18/40 ratio that the above has and want to maintain that ratio over time, than the LifeStrategy fund will meet your needs. The only reason to add Wellington is if you want to hedge your bets with some active management from a fund that has been around a long time (80+ years) with good returns. But that will make your portfolio a little more complex.

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