Clements, HumbleDollar, viewing Vanguard with unease: "Whither Vanguard?"

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nisiprius
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Re: Clements, HumbleDollar, viewing Vanguard with unease: "Whither Vanguard?"

Post by nisiprius » Mon Aug 05, 2019 3:39 pm

bhsince87 wrote:
Mon Aug 05, 2019 2:04 pm
..."Does Vanguard think sector funds are a good idea or not?"...
I was scratching my head over that one, myself, because I do not think of "gold and precious metals" as a "sector."

As far as I'm concerned, the "sectors" are as described in Wikipedia's article on the Global Industry Classification Standard and this document

Energy
Materials
Industrials
Consumer Discretionary
Consumer Staples
Health care
Financials
Information technology
Communications services
Utilities
Real estate

All of which have had and still have stable Vanguard ETFs.

According to Wikipedia, "gold" and "precious metals" not only are not sectors, they are not even "industry groups" or "industries." They are down at the sub-industry level, of which there are 89.

So the question is "Does Vanguard think one sole fund targeting two out of 89 narrow sub-industries is a good idea?" It's sort of like asking "should Vanguard add a fund targeting brewers, and one targeting commercial printing, and one targeting security and alarm services?

No.

They shouldn't.
Annual income twenty pounds, annual expenditure nineteen nineteen and six, result happiness; Annual income twenty pounds, annual expenditure twenty pounds ought and six, result misery.

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Re: Clements, HumbleDollar, viewing Vanguard with unease: "Whither Vanguard?"

Post by Broken Man 1999 » Mon Aug 05, 2019 3:50 pm

SavageAmusement wrote:
Mon Aug 05, 2019 3:03 pm
While customer service is an issue, my bigger problem with Vanguard is security risk. They simply do not spend as much on IT as Fidelity and other financial institutions. I am concerned its lack of IT resources leaves customers vulnerable to cyber and fraud risks. Therefore, I am uncomfortable leaving my assets there. I suspect this is a minority opinion around here. That’s fine with me, because it’s my money.
It is your money, and absolutely you should have your holdings where you feel meets your needs best. Every investor should be able to SWAN (sleep well at night). No need to have stress that can easily be mitigated.

I'm comfortable at Vanguard, however having mostly ETFs, we can easily move if the need arises.

Good luck!

Broken Man 1999
“If I cannot drink Bourbon and smoke cigars in Heaven than I shall not go. " -Mark Twain

lws
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Re: Clements, HumbleDollar, viewing Vanguard with unease: "Whither Vanguard?"

Post by lws » Tue Aug 06, 2019 2:21 pm

The Bogleheads philosophy is primary not any individual financial firm.

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Re: Clements, HumbleDollar, viewing Vanguard with unease: "Whither Vanguard?"

Post by Silence Dogood » Mon Aug 12, 2019 8:50 pm

SavageAmusement wrote:
Mon Aug 05, 2019 3:03 pm
While customer service is an issue, my bigger problem with Vanguard is security risk. They simply do not spend as much on IT as Fidelity and other financial institutions. I am concerned its lack of IT resources leaves customers vulnerable to cyber and fraud risks. Therefore, I am uncomfortable leaving my assets there. I suspect this is a minority opinion around here. That’s fine with me, because it’s my money.
Is there any way to know how much Vanguard spends on IT compared to other financial institutions?

I do wish that Vanguard would support proper two-factor authentication.

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Re: Clements, HumbleDollar, viewing Vanguard with unease: "Whither Vanguard?"

Post by nedsaid » Tue Aug 13, 2019 11:02 am

It is amazing that Fidelity is trying to become Vanguard and that Vanguard is trying to become Fidelity.
A fool and his money are good for business.

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