VFIRX or VFSUX

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alanf56
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VFIRX or VFSUX

Post by alanf56 » Thu Feb 16, 2012 8:46 am

Which of the two VFIRX or VFSUX would you choose to put 50K into instead of a 5 to 7 year CD and why?

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SpringMan
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Re: VFIRX or VFSUX

Post by SpringMan » Thu Feb 16, 2012 9:14 am

That is a difficult question. There are those that like to stick to treasuries but personally I use short term investment grade, VFSUX. BTW, I hate the ticker symbol, who wants something that sux.:P The credit quality is lower and the yield is higher. You could also split the difference with VBISX, short term index. IMO, any of the three would be a good choice.
Best Wishes, SpringMan

alanf56
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Re: VFIRX or VFSUX

Post by alanf56 » Thu Feb 16, 2012 10:36 am

Yes I guess VBIRX would be an in between position to take on it. In the current environment I wonder which of the three would take less of a hit if the interest rates were to take off. Or would you think they are about the same with respect to that. I am still interested in the original post question as well.

YDNAL
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Re: VFIRX or VFSUX

Post by YDNAL » Thu Feb 16, 2012 11:17 am

alanf56 wrote:Which of the two VFIRX or VFSUX would you choose to put 50K into instead of a 5 to 7 year CD and why?
Doesn't it depend on the need and timeframe for this money?

If you needed your $50K around 12/8/2008, you wouldn't be very thrilled with VFSUX (the name actually made sense then :) ). In 5 months it went from $10.57 on 7/8/2008 to $9.57 (—9%).
Landy | Be yourself, everyone else is already taken -- Oscar Wilde

alanf56
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Re: VFIRX or VFSUX

Post by alanf56 » Thu Feb 16, 2012 11:35 am

YDNAL wrote:
alanf56 wrote:Which of the two VFIRX or VFSUX would you choose to put 50K into instead of a 5 to 7 year CD and why?
Doesn't it depend on the need and timeframe for this money?

If you needed your $50K around 12/8/2008, you wouldn't be very thrilled with VFSUX (the name actually made sense then :) ). In 5 months it went from $10.57 on 7/8/2008 to $9.57 (—9%).
Yes it would depend on what the needs are for the money. I really would not need to touch it in the near term but my plans are to have that portion (50K) in a semi liquid mode. Instead of dumping it into a short term CD at low interest I have been looking at other alternatives but of course don't want to get carried away with risk on it either. Thanks for the input. Trying to sort out the many options and go with one.

livesoft
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Re: VFIRX or VFSUX

Post by livesoft » Thu Feb 16, 2012 11:38 am

It doesn't matter which one you pick because it will be the wrong one. Just let me know which one you decide upon, so that I can use the other one. :)

Full disclosure: We used to own VFSUX, but now have VCSH. Also we own VBIRX in other accounts.
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alanf56
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Re: VFIRX or VFSUX

Post by alanf56 » Thu Feb 16, 2012 11:45 am

livesoft wrote:It doesn't matter which one you pick because it will be the wrong one. Just let me know which one you decide upon, so that I can use the other one. :)

Full disclosure: We used to own VFSUX, but now have VCSH. Also we own VBIRX in other accounts.

Yes but the good part is I most likely won't be able to figure out it was the wrong one either!!! :)

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joe8d
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Re: VFIRX or VFSUX

Post by joe8d » Thu Feb 16, 2012 8:37 pm

If you needed your $50K around 12/8/2008, you wouldn't be very thrilled with VFSUX (the name actually made sense then ). In 5 months it went from $10.57 on 7/8/2008 to $9.57 (—9%).
I actually put over 50K in that fund during a 3 day period that just preceded that $9.57 low day :) So it work out very well for me as it's at a $10.73 NAV today.
All the Best, | Joe

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