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Post by chang on Feb 16, 2024 10:23:34 GMT
A noted in another post I would like to free up space in my Fido IRA to buy FOSFX, which I would do simultaneously with selling VWILX in a VG IRA. To make space in the Fido IRA, I need to sell something which I could "replace" in the VG IRA. (Alternatively, I could sell VWILX to cash and do a transfer between IRAs, but this takes time and effort and sometimes goes amiss -- I'll avoid this if I can.) I own FBGRX in both the IRA in question as well as a separate Roth. It's my main LCG exposure. Question: how about selling some FBGRX in the Fido IRA to buy FOSFX, and selling VWILX in the VG IRA to buy VWUAX? (Sorry for the alphabet soup.) Obviously, VWUAX has been a poorer fund than FBGRX in the past. Hence, I have been a happy owner of FBGRX. But: FWUAX has enjoyed periods of stupendous performance; clearly it is a volatile fund. I have just read through its 5 managers' bios, and they all seem like extremely qualified and experienced men and women. I know, bios shmios, but they're not dummies. I wonder if it would be such a bad thing to diversify my LCG which is currently almost entirely concentrated within FBGRX? Anyone out there own VWUAX? Any thoughts appreciated with TIA. |
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Post by Karen on Feb 16, 2024 15:07:53 GMT
You might want to look at VIGAX vs VWUAX since VIGAX's inception on 11/30/92.
Growth of $10K since 11/30/92
VIGAX: +$243K
VWUAX: +$119K
Currently, very similar fund composition, but very different TRs since VIGAX's inception.
Disclaimer: We are LT holders of VIGAX and have NO intention of selling it.
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Post by acksurf on Feb 16, 2024 15:22:53 GMT
You might want to look at VIGAX vs VWUAX since VIGAX's inception on 11/30/92. Growth of $10K since 11/30/92 VIGAX: +$243K VWUAX: +$119K Currently, very similar fund composition, but very different TRs since VIGAX's inception. Disclaimer: We are LT holders of VIGAX and have NO intention of selling it. I agree. Not sure why you would go with VWUAX. I hold VUG which I think is the etf version of VIGAX. VUG is my main large growth allocation but do have a small amount of FTEC as well. |
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Post by rhythmmethod on Feb 16, 2024 16:04:35 GMT
chang, I agree with the two above comments. For me, however, I prefer an LCG that seems more flexible and less growthy. As a result, my position there is PRWAX. I hold (but have been trimming )APPL, AMZN, and MSFT). As usual, I bought well (2022) but started taking profits too soon. MSFT is still my largest holding. VUG is my taxable "catch-all" LCG fund. - RM PS - to add, I've started a very small position in FSELX to concentrate on chip potential.
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Post by Karen on Feb 16, 2024 16:11:27 GMT
We also have long owned PRWAX and FSELX as Core positions. IOO, PRWAX is possibly the least posted/spoken about outstanding LCG fund.
FWIW: Note that the Fido OEF that we found to be closest to VIGAX is FNCMX.
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Post by chang on Feb 16, 2024 16:21:29 GMT
FWIW: Note that the Fido OEF that we found to be closest to VIGAX is FNCMX. Surely FSPGX is Fido's closest index fund to VIGAX. |
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Post by chang on Feb 16, 2024 16:30:52 GMT
You might want to look at VIGAX vs VWUAX since VIGAX's inception on 11/30/92. No question, that chart tells a story, and it's the same over most time frames. I added FBGRX, which blows them both away. It outpaces PRWAX as well. I'm thinking that selling FBGRX might be a mistake. VIGAX is a good fund but I would rather hold that in taxable, being highly tax efficient, and keep my precious tax deferred space for tax inefficient funds. |
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Post by Karen on Feb 16, 2024 16:31:38 GMT
Not going to disagree with you as they are all within spitting distance of each other.
The primary point I was trying to make was you don't need to switch from VG to Fido as VG has what it appears you should have been invested in in lieu of what you are invested in and want to replace.
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Post by chang on Feb 16, 2024 16:43:28 GMT
Not going to disagree with you as they are all within spitting distance of each other. The primary point I was trying to make was you don't need to switch from VG to Fido as VG has what it appears you should have been invested in in lieu of what you are invested in and want to replace. Er, not exactly... kind of the opposite. Fido has FOSFX which I like, VG has VWILX which I like less. Both active - both should be in tax deferred. I can buy FOSFX in my IRA but I'll have to sell something in that account. Whatever I sell, VG doesn't have an equally good replacement (in the VG IRA). For example, I also have FSUTX (Fido Select Utils) in the IRA, so if I sold that I'd have to consider buying VUIAX (VG Utilities Index Fund Adm) in the VG account. Not a bad fund, and for sure the two are never going to be miles apart, but I think the Fido fund is distinctly better, even after its higher expense ratio. I do own funds in the VG IRA that I think are top notch: VHCAX, VDIGX, VWNEX, VWNAX. What I could do is simply put the proceeds into one of those, and re-jigger, twiddle, and reshuffle other things in other accounts to keep things more or less as is. To be perfectly honest, the % changes involved here aren't huge, and who's to say that I've got it exactly right now anyway? I kind of hate to give up entirely on FSUTX. It's not a giant holding by any means, but I really wanted to see it through 2024 to see if utils RTTM in a big way. |
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Post by acksurf on Feb 16, 2024 20:43:04 GMT
chang , I agree with the two above comments. For me, however, I prefer an LCG that seems more flexible and less growthy. As a result, my position there is PRWAX. I hold (but have been trimming )APPL, AMZN, and MSFT). As usual, I bought well (2022) but started taking profits too soon. MSFT is still my largest holding. VUG is my taxable "catch-all" LCG fund. - RM PS - to add, I've started a very small position in FSELX to concentrate on chip potential. I am in that boat too having gone through the dot com bust and 2008. I've definitely given up some gains by not being more aggressive on the growth side. I am positioned for lower volatility at this point. PRWAX has been on my watch list for a while. I've thought about matching this up with FTEC as well as keeping a position in VUG or something similar. |
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Post by chang on Feb 17, 2024 8:51:09 GMT
It still amazes me that five highly intelligent, experienced money managers with Ivy League degrees can't beat VUG. I guess what makes a successful money manager remains a bit of a mystery. investor.vanguard.com/investment-products/mutual-funds/profile/vwuax#fund-managementWellington Management
Andrew J. Shilling - Advised the fund since 2010.Worked in investment management since 1994. B.A., Amherst College. M.B.A., Tuck School of Business, Dartmouth College.Baillie Gifford
Gary Robinson - Advised the fund since 2015. Worked in investment management since 2003. M.Biochem., Oxford University.Tom Slater - Advised the fund since 2015. Worked in investment management since 2000. B.Sc. Computer Science with Mathematics, University of Edinburgh.Jennison Associates
Kathleen A. McCarragher - Advised the fund since 2014. Worked in investment management since 1982. B.B.A., University of Wisconsin. M.B.A., Harvard Business School.
Blair A. Boyer - Advised the fund since 2014. Worked in investment management since 1983. B.A., Bucknell University. M.B.A., New York University. |
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