Donate to Remove ads

Got a credit card? use our Credit Card & Finance Calculators

Thanks to tea42,yyuryyub,Howyoudoin,Anonymous,EverybodyKnows, for Donating to support the site

Vanguard hedge fund?

Closed-end funds and OEICs
NotSure
Lemon Slice
Posts: 424
Joined: February 5th, 2021, 4:45 pm
Has thanked: 300 times
Been thanked: 150 times

Vanguard hedge fund?

#500131

Postby NotSure » May 12th, 2022, 6:09 pm

Not much heading upwards at the moment, but one thing that is rising is a very strange fund from Vanguard, best known for their low cost passive trackers (and their advocation of that approach).

The Vanguard Market Neutral Fund (VMNFX): https://investor.vanguard.com/mutual-funds/profile/portfolio/vmnfx

Very odd. It seems to operate much like a hedge fund (long and short positions) and it is up 12% YTD. Not many funds can boast that!

I don't suppose it is available to UK investors, certainly not on their UK platform, but thought it worth flagging for sheer curiosity value.

JohnW
Lemon Slice
Posts: 278
Joined: June 1st, 2019, 7:00 am
Has thanked: 2 times
Been thanked: 77 times

Re: Vanguard hedge fund?

#500263

Postby JohnW » May 13th, 2022, 1:52 pm

Not bad if you’re investing for 4 months. What about for 30 years? Here’s a chart showing it’s had half the return of bonds, with more volatility:
https://www.bogleheads.org/forum/viewtopic.php?t=366403

NotSure
Lemon Slice
Posts: 424
Joined: February 5th, 2021, 4:45 pm
Has thanked: 300 times
Been thanked: 150 times

Re: Vanguard hedge fund?

#500282

Postby NotSure » May 13th, 2022, 3:27 pm

JohnW wrote:Not bad if you’re investing for 4 months. What about for 30 years? Here’s a chart showing it’s had half the return of bonds, with more volatility:
https://www.bogleheads.org/forum/viewtopic.php?t=366403


I am not recommending it, just thought it was rather a curiosity given Vanguard's philosophy. I guess it's for wealth preservation rather than stellar growth, so going up when all else is dropping is what it's for? (Bonds have dropped by almost exactly then same as equities YTD - no negative correlation there at the moment). Bonds have also done rather well since 2008, when the charts diverge, but that's been driven largely by QE - central banks have been buying billions and billions with 'freshly printed' money.


Return to “Investment Trusts and Unit Trusts”

Who is online

Users browsing this forum: No registered users and 8 guests