This is the best quote from Vanguard in years. Found it looking through a current prospectus. Don't know how long they've been including this."Do not invest with Vanguard if you are a market-timer." - Vanguard
The line has been drawn.
This is the best quote from Vanguard in years. Found it looking through a current prospectus. Don't know how long they've been including this."Do not invest with Vanguard if you are a market-timer." - Vanguard
Rowan Oak:
I am happy to see that Vanguard is doing the right thing by discouraging market timing."Do not invest with Vanguard if you are a market-timer."
That line was drawn long ago. From the Vanguard Wellington prospectus dated March 19, 1999 (link):
PLAIN TALK ABOUT COSTS AND MARKET-TIMING
Some investors try to profit from market-timing -- switching money into investments when they expect prices to rise, and taking money out when they expect the market to fall. As money is shifted in and out, a fund incurs expenses for buying and selling securities. These costs are borne by all fund shareholders, including the long-term investors who do not generate the costs. Therefore, the Fund discourages short-term trading by, among other things, limiting the number of exchanges it permits.
THE VANGUARD FUNDS DO NOT PERMIT MARKET-TIMING. DO NOT INVEST IN THIS FUND IF YOU ARE A MARKET-TIMER.
Agree, the statement is unenforceable fluff and those who are oohing and ahhing about it, despite their intelligence and long experience, seem to affect an implausible naïveté.columbia wrote: ↑Wed Oct 10, 2018 8:29 pm I’d say Vanguard does, in fact, have a high tolerance for market timing....
Vanguard Group begins an investing experiment that pushes free ETF trading to its limit
https://www.google.com/amp/s/www.cnbc.c ... sting.html
One might add that in past years it was perhaps superficially possible to adopt a persimmon-faced attitude of clucking, finger-wagging disapproval toward so-called “market timers” by arguing (with thin or nil evidence) that their activities might adversely affect other, presumably wide-eyed and innocent, deserving-of-and-much-in-need-of-protection investors in a given mutual fund. Now Vanguard offers a full suite of market-traded ETF’s, many of which mimic its mutual fund alter egos.smectym wrote: ↑Thu Oct 11, 2018 1:28 amAgree, the statement is unenforceable fluff and those who are oohing and ahhing about it, despite their intelligence and long experience, seem to affect an implausible naïveté.columbia wrote: ↑Wed Oct 10, 2018 8:29 pm I’d say Vanguard does, in fact, have a high tolerance for market timing....
Vanguard Group begins an investing experiment that pushes free ETF trading to its limit
https://www.google.com/amp/s/www.cnbc.c ... sting.html
Smectym
It's enforced.smectym wrote: ↑Thu Oct 11, 2018 1:28 amAgree, the statement is unenforceable fluff and those who are oohing and ahhing about it, despite their intelligence and long experience, seem to affect an implausible naïveté.columbia wrote: ↑Wed Oct 10, 2018 8:29 pm I’d say Vanguard does, in fact, have a high tolerance for market timing....
Vanguard Group begins an investing experiment that pushes free ETF trading to its limit
https://www.google.com/amp/s/www.cnbc.c ... sting.html
Not sure I see your point.smectym wrote: ↑Thu Oct 11, 2018 1:28 amAgree, the statement is unenforceable fluff and those who are oohing and ahhing about it, despite their intelligence and long experience, seem to affect an implausible naïveté.columbia wrote: ↑Wed Oct 10, 2018 8:29 pm I’d say Vanguard does, in fact, have a high tolerance for market timing....
Vanguard Group begins an investing experiment that pushes free ETF trading to its limit
https://www.google.com/amp/s/www.cnbc.c ... sting.html
Smectym