Fund Vs. Fund – Month 2


Last month I decided to compare the results of my ROTH IRA Vanguard funds with my individual positions in the top companies that constitute those funds. I now have a full month of info to work from, so I’ll share the results with you now. Below are the 2 Vanguard dividend funds I have and the change in value they have seen in 1 month.

up 3.26%

up 3.36%

Pretty good right? I dare you to find that kind of return on a savings account with a bank for a 1 month period. The expense ratios on these funds are relatively low too. (0.2% and 0.29%)

Now let’s see how the individual companies that I own did in that time.

up 2.29%

up 2.44%

Still decent, but certainly not as impressive as the funds. Keep in mind that to give the individual holdings a fair shot, we should be analyzing the change over at least a 3 month cycle to account for the varried dividend pay dates.

There was a time when I thought that saving money in your low interest bank account was a retirement strategy, and that was back when banks would give you almost a whole 1% per year. This is why I think it’s so important that people learn the ways their money can be put to work through investments. I didn’t know better, and I’m sure there are hundreds of thousands of young people today that don’t know any better either.

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