vanguard U.S. Equity Index Fund

celt80

What are your opinions on the vanguard U.S. Equity Index Fund fund?

It seems to perform well?

Thanks

eskbanker

Not sure it's practical or valid for anyone to offer opinions in a vacuum - what are you looking for, what else do you have and what are you benchmarking it against?

It's a bit like asking what people's opinions are on a Ford Fiesta - it might be good for some/many/most but if you're looking to transport a family of six or if you're a thrill-seeker wanting 0-60 in 3 seconds then it's not going to be a very good answer....

celt80

lol fair point.

I'm looking to find a fund to invest in that has done well over the previous years.

I've invested £5000 in a vanguard life strategy fund to dip my toes in the water and see how that goes. I'm looking to invest in the long term not short term.

dunstonh

What are your opinions on the vanguard U.S. Equity Index Fund fund?

Pretty useless if you are trying to fill a UK equity allocation.

It seems to perform well?

Relative to what?
It certainly isn't the best passive fund for US equity.

I'm looking to find a fund to invest in that has done well over the previous years.

And once you have decided the allocation for US equity, are you going to do the other 8-12 funds that are needed to build a bespoke portfolio of single sector funds?

I've invested £5000 in a vanguard life strategy fund to dip my toes in the water and see how that goes. I'm looking to invest in the long term not short term.

If you are using a multi-asset fund as your strategy, why would you be looking at single sector funds?
Are you looking at all the other sectors as well or just US equity?

US equity has been the stand out performer in this cycle. Not too unsurprising as it underperformed in the previous cycle. It is rare for the best performer in one cycle to repeat in the next. And the often the underperformers in one cycle will over perform in the next.

Do you understand investing enough to build a portfolio of single sector funds?

ColdIron

It tracks the S&P Total Market Index and as long as it does so accurately and at low cost you can't ask much more of it. If you want passive exposure to large, mid, small and micro cap US companies it fits the bill

You can read more about it here
https://www.vanguardinvestor.co.uk/investments/vanguard-us-equity-index-fund-accumulation-shares

ColdIron

celt80 wrote: »

I've invested £5000 in a vanguard life strategy

Vanguard's Lifestrategy obtains 20% of its US exposure (depending on which VLS you use) directly via this fund so adding more of the same probably won't produce the results you expect. The Vanguard Lifestrategy is a very diverse, fire and forget, one stop shop fund. I'd play to it's strengths until you have a lot more invested

bostonerimus

Vanguard US Equity Index fund would be a fine component of a simple index fund portfolio. I'm in the US and use the US based equivalent as my core domestic equity fund as the total fees are just 0.04%. So if you are looking for a long term investment it's a good core fund, but you'll need a few more funds or use a multi-asset fund to get some diversification. I use US equity, International Equity and US bond funds for my core portfolio.

webjaved

I'd stick to what you've got already and see how that performs, when you feel comfortable look to to invest in Vanguard US Equity Index fund if you wish.

short_butt_sweet

dunstonh wrote: »

It certainly isn't the best passive fund for US equity.

i'm interested in why you say this. (i know there are S&P500 trackers which cost less, but i was thinking it might be worth paying a bit more for a total market tracker.)

lonewolf123

short_butt_sweet wrote: »

i'm interested in why you say this. (i know there are S&P500 trackers which cost less, but i was thinking it might be worth paying a bit more for a total market tracker.)

Same will be interested to know if there is anything better out that that tracks the S&P total market and not just 500.

Willing to pay those extra percentile points to get the "total" exposure.

Sue58

HSBC and Fidelity US index funds produce good results but they only track the S&P500.