Single Favorite Mutual Fund

[Sunny Sarkar]

Vanguard LifeStrategy Moderate Growth Fund (VSMGX)

42% Vanguard Total Stock Market Index Fund
18% Vanguard Total International Stock Index Fund
32% Vanguard Total Bond Market II Index Fund
08% Vanguard Total International Bond Index Fund

[Quasimodo]

I wasn't sure what the OP meant exactly, but as a nervous, risk-averse older investor (I'm 74) I tried to think of a one-fund investment that would let me sleep at night.

Some of the mutual funds that came to mind were Wellesley Income (symbol VWINX) , Hussman Strategic Total Return (symbol HSTRX), and the Permanent Portfolio (symbol PRPFX). These have all been listed at times in the past as being among the top performing "Conservative Allocation" mutual funds, and have relatively low expense ratios, compared with many of the other funds listed as top performers in this category. There is also an ETF version of the Permanent Portfolio (symbol PERM).

Wellesley has had consistent good returns during the past thirty plus years of declining interest rates. It did have a significant downturn in 2008 when the stock market tanked. I doubt that I would have been able to stay the course during an episode like that, and I’d also be concerned about holding this bond-heavy fund if and when interest rates go back up.

The Hussman fund is mostly government bonds, with changeable small allocations to energy, utility and gold mining stocks. It made money during the 2008 market crash, but is losing money currently and has had disappointing returns in recent years.

PRPFX is based on an early version of the Harry Browne strategy that was designed to hold up well during bad inflation. Its returns during the stock market boom of the 1980s and 90s was basically the same as a T Bill money market fund, but with a much higher expense ratio.

PERM’s allocation is more market neutral than PRPFX, but it is quite new, and the fund is probably still too volatile to let me sleep at night.

Currently I’ve opted for a more conservative version of the Permanent Portfolio plan, with 15% allocated to a broad stock index, 15% to long term T Bonds, 15% to gold bullion and most of the remainder in some combination of Ginnie Mae bonds and a money market fund. I also have about 5% of the total in gold mining stocks as a speculative investment. This seems to be about where my comfort level is.

I’m not aware of an ETF or mutual fund that would enable me to obtain the above asset allocation with a single fund .

This is a personal decision, not a recommendation, and merely intended as a response to my perhaps incorrect interpretation of the original poster's question.

John

[BGeste]

A few favorites.

Vanguard TR 2045. A simple yet sophisticated way to have a complete portfolio in one fund. My biggest IRA holding.

Vanguard VYM. ETF with a high dividend / value tilt.

Vanguard Health Care ETF. Tremendous sector performer.

[LiveSimple]

Any total stock market index fund from any mutual fund company such as Vanguard, Fidelity, Schwab.

[fsrph]

It's hard to pick one because that one is complimented by others. But if I had to pick one it's VG Wellesley.

Francis

[HEDGEFUNDIE]

PSLDX will make me rich.

It's 50% of my AA.

[gvsucavie03]

PSLDX will make me rich.

It's 50% of my AA.

1.11% ER

[HEDGEFUNDIE]

PSLDX will make me rich.

It's 50% of my AA.

1.11% ER

Technically only 0.59% ER, the rest of it is cost of leverage that comes with the strategy.

In any case, since inception in 2007 the fund has returned 15% CAGR after expenses compared to 8% for the S&P over the same period, with similar drawdown risk (tested through three market crashes).

https://www.portfoliovisualizer.com/fun ... mark=VFINX

[gvsucavie03]

PSLDX will make me rich.

It's 50% of my AA.

1.11% ER

Technically only 0.59% ER, the rest of it is cost of leverage that comes with the strategy.

In any case, since inception in 2007 the fund has returned 15% CAGR after expenses compared to 8% for the S&P over the same period, with similar drawdown risk (tested through three market crashes).

https://www.portfoliovisualizer.com/fun ... mark=VFINX

And unless you have at least $1M invested, front load of 3.75%, back end 1% and a higher ER.... No thanks.

[jeep5ter]

PRWCX

[HEDGEFUNDIE]

PSLDX will make me rich.

It's 50% of my AA.

1.11% ER

Technically only 0.59% ER, the rest of it is cost of leverage that comes with the strategy.

In any case, since inception in 2007 the fund has returned 15% CAGR after expenses compared to 8% for the S&P over the same period, with similar drawdown risk (tested through three market crashes).

https://www.portfoliovisualizer.com/fun ... mark=VFINX

And unless you have at least $1M invested, front load of 3.75%, back end 1% and a higher ER.... No thanks.

None of the above applies. You can buy it for $10 commission at Ally.

viewtopic.php?t=305950

[howdy007]

PRWCX

Seems like closed for new investors

[Taylor Larimore]

Bogleheads:

This topic was started seven years ago.

My answer is still the same: My "Single Favorite Mutual Fund" is Vanguard Total Stock Market Index Fund (VTSAX).

Thank you, Mr. Bogle!

Best wishes
Taylor

Jack Bogle's Words of Wisdom: "The winning formula for success in investing is owning the entire stock market through an index fund, and then doing nothing. Just stay the course."

[gvsucavie03]

PSLDX will make me rich.

It's 50% of my AA.

1.11% ER

Technically only 0.59% ER, the rest of it is cost of leverage that comes with the strategy.

In any case, since inception in 2007 the fund has returned 15% CAGR after expenses compared to 8% for the S&P over the same period, with similar drawdown risk (tested through three market crashes).

https://www.portfoliovisualizer.com/fun ... mark=VFINX

And unless you have at least $1M invested, front load of 3.75%, back end 1% and a higher ER.... No thanks.

None of the above applies. You can buy it for $10 commission at Ally.

viewtopic.php?t=305950

I didn't read the whole thread, still not sure I'd move that direction. The LT bond argument for back-testing from the mid 80's versus today's rates is enough to make me very hesitant about future performance. I'd put the same amount in this as I would Bitcoin... No more than 10%

[NMBob]

AKREX - Akre focus fund. Chuck Akre is one of the extremely few managers that defies the Boglehead philosophies. yep, High fee, and he has well earned every penny he has ever charged while managing FBR Focus fund and then his own Akre Focus fund.

[FrugalInvestor]

Vanguard Total Stock Market Admiral (VTSAX) for 3 primary reasons...

1. Simplicity - by owning it I own the entire U.S. market - by adding another fund or two I have a complete and balanced portfolio.
2. Solid Long-Term Performance
3. Tax Efficiency

[catdoctor]

POAGX

[HEDGEFUNDIE]

POAGX

I respect your ability to stay-the-course

[GreenLantern2814]

POAGX

I respect your ability to stay-the-course

+1

Honestly, it's a complicated situation with PRIMECAP. I respect the fund management, and still believe in them, but I do wonder why they're still in the dumps for so long.

[GreenLantern2814]

Also, my goodness, this is an ancient thread that's been resurrected.

[BGeste]

Bogleheads:

This topic was started seven years ago.

My answer is still the same: My "Single Favorite Mutual Fund" is Vanguard Total Stock Market Index Fund (VTSAX).

Thank you, Mr. Bogle!

Best wishes
Taylor

Jack Bogle's Words of Wisdom: "The winning formula for success in investing is owning the entire stock market through an index fund, and then doing nothing. Just stay the course."

doesn't a vanguard target retirement or life strategy fund provide better diversification and the added benefit of automatic rebalancing?

[tealeaves]

PSLDX will make me rich.

It's 50% of my AA.

What's the other 50%?

[TeeDee]

PSLDX

with NTSX 3% off all time high i thought i would give it a shout out too

[abuss368]

How many names on this thread since 2013 that no longer post here.

I still like Total Stock Market Index.

[SpaceX]

Fidelity Select Health Care
Fidelity Select Defense

The only 2 sector funds that I have ever invested in since 1999.

[reason-logic]

Vanguard Tax Managed Balanced Fund Admiral (VTMFX)

[cos]

PSLDX will make me rich.

It's 50% of my AA.

What about PSLDX makes you prefer it over the Adventure in this case?

[HEDGEFUNDIE]

PSLDX will make me rich.

It's 50% of my AA.

What about PSLDX makes you prefer it over the Adventure in this case?

The Adventure is not a part of my AA.

For my regular portfolio I use less leverage.

[UpperNwGuy]

The total stock market index funds at Vanguard, Fidelity, and Schwab along with the S&P 500 index funds as tax loss harvesting partners.

[CardioMD]

FXAIX

No leverage, no fluff, not complicated.

[LookinAround]

AKREX - Akre focus fund. Chuck Akre is one of the extremely few managers that defies the Boglehead philosophies. yep, High fee, and he has well earned every penny he has ever charged while managing FBR Focus fund and then his own Akre Focus fund.

+1

Past performance yada yada

In spite of it's high ER (over 1%), you can run Portfolio Analyzer to compare AKREX vs VTI and AKREX beats hands down each time. To check see how it did through COVID-19, checking period Jan - May, 2020
- VTI is down returning -5.62%
- AKREX is up +6.93%

That said, I still hedge my bet keeping half my total stock fund alloc in VTI and other half AKREX

[SpaceX]

Vanguard LifeStrategy Moderate Growth Fund (VSMGX)

42% Vanguard Total Stock Market Index Fund
18% Vanguard Total International Stock Index Fund
32% Vanguard Total Bond Market II Index Fund
08% Vanguard Total International Bond Index Fund


Seven years later, are you happy with the performance of that particular mutual fund?

[BroIceCream]

<pardon some heresy>
Fidelity Growth Company Fund (FDGRX). High expense ratio (0.83), and closed to new investors.
Not for bogleheads. HOWEVER, for the first 15 years of my career - I had no knowledge of investing, and my employer offered this fund, including others. I put everything in this, and survived my ignorance.
I have since moved to a fully indexed, w/ very low ER, 401K, and still have occasional twinges of regret for not still having some in this fund. It has been a great performer.

[mt2k]

My 401K account does not have that many good, consistent performing low cost funds. The one that have made me money over the years is Fidelity Growth Company (FDGRX).

In my brokerage account I like PSLDX

[ruralavalon]

What is your single favorite mutual fund?

I will pick Vanguard Wellington (VWELX)

If I could only use one fund I would probably pick Vanguard Balanced Index Fund (VBIAX) ER 0.07%.

[sundevil_jay]

PRHSX

[LadyGeek]

This thread is now in the Investing - Theory, News & General forum (general question).

sundevil_jay, Welcome!

[Gort]

VSMGX - Vanguard Life Strategy Moderate Growth.

[oldzey]

Vanguard Total Stock Market Index Fund Admiral Shares (VTSAX)

[jb1]

vfiax

[Ferdinand2014]

100% FXAIX (Fidelity 500 index) expense ratio 0.015

Perfect tracking of the S&P 500 index at super low cost. It has everything I want in an investment and nothing I don’t want.

[abuss368]

Vanguard Total Stock Market Index Fund Admiral Shares (VTSAX)

Now that license plate was good!

[abuss368]

What is your single favorite mutual fund?

I will pick Vanguard Wellington (VWELX)

If I could only use one fund I would probably pick Vanguard Balanced Index Fund (VBIAX) ER 0.07%.

Jack Bogle mentioned he had his grandkids money in a single Vanguard Balanced Index fund.

[LeslieSmiley]

Contrafund, outperformance over the S&P 500 for over 20 years is greatly appreciated, and is thus appropriate to maintain, Boglehead or otherwise.

+1

[gvsucavie03]

Contrafund, outperformance over the S&P 500 for over 20 years is greatly appreciated, and is thus appropriate to maintain, Boglehead or otherwise.

+1

After subtracting the 80 basis points of additional expense?

[LeslieSmiley]

Contrafund, outperformance over the S&P 500 for over 20 years is greatly appreciated, and is thus appropriate to maintain, Boglehead or otherwise.

+1

After subtracting the 80 basis points of additional expense?

yes.
FCNTX VTSAX
YTD Return 2.07% -9.49%
1-Year Return 12.76% 1.86%
3-Year Return 14.29% 8.24%
5-Year Return 12.49% 8.29%
10-Year Return 13.86% 11.71

and i own both.

[Mr.BB]

PRWCX

Seems like closed for new investors

One of my favorites. Been in it since 2007, it is close to new investors.

[7th_Diagram]

PSLDX will make me rich.

It's 50% of my AA.

HF- PSLDX is interesting... Out of curiosity what is the other 50% of your AA? Would like to get the full picture as part of my analysis.

[tetractys]

I don’t own it...yet; but just because it’s been around since 1929, Vanguard Wellington Fund (VWELX). There are older funds out there; but none I would be interested in.

[Sunny Sarkar]

Vanguard LifeStrategy Moderate Growth Fund (VSMGX)

42% Vanguard Total Stock Market Index Fund
18% Vanguard Total International Stock Index Fund
32% Vanguard Total Bond Market II Index Fund
08% Vanguard Total International Bond Index Fund

Seven years later, are you happy with the performance of that particular mutual fund?

Yes.