The latest Kiplinger's Magazine is still touting this fund. I'm thinking of getting in, but I'm also concerned that the train has already left the station.
This would be part of an IRA, so it is a long time horizon. How do you think this sector will perform vs. other sectors over the next 20 years?
In the medium to long run, investing in energy funds makes a lot of sense. In the short run, especially in this market, expect of lot of price movement in both directions. There are higher returns available, however, consider this a core holding. Just don't overweight here. BTW, i recently reinvested after puling out in Spring 2011.
Ohhh yeah, lots more shares... whoop-dee-do-dah-day!!! The profits aren't running through to us... My 200k portfolio is down $38k and change (19%) since 8 April 2011, WITH the additional December shares. I hope the election brings at least a false rally to 'beat feet'. Long time w/ them, had enough bs. glta
The rising price of oil isn't helping VGENX, VGELX that much. When 6% is Exxon, an integrated oil company you're breaking even on the upstream and downstream part of the operation when combined together. Those energy funds that have a greater percentage of E & P (exploration and production) stocks are moving up as the price of oil increases. So I say, please half your shares of Exxon, Chevron, Conoco Phillips and buy more exploratory energy stocks like Apache.
I work for Schlumberger in the gulf of mexico. Our forcast is for a slowdown in 08, 10% or so, as rigs reposition world wide. Actually the number of rigs in the gulf are dropping, moving overseas for longer term day rates +/ 100k/day. But big deepwater rigs coming online 4th qtr this year from shipyards in Singapore/Seoul. 5th generation stuff, 5-10,000 ft of water .Big plays out deep...nat gas drives the gulf, not oil. But...they don't find oil in nice easy places any longer and we've yet to curb our worldwide appetite so don't see this comodity going anywhere but up...For long term.....BUY.
I don't want to bore you with a long story, but several years ago I made 3-4 spectacular short-term trades in Valero, and thought I was pretty smart. However; after waiting for months for it to go back down to the mid-30s for my next ride up (this was 3 stock splits & several dividends ago) I realized that I would have made MORE money by just holding my initial buy and ignoring the stock for a couple of years. This Fund is similar - It is well-managed, and energy will go up & up for years. Buy it for your IRA and hold until your Seventies!!!!
Well I grandpa'd into this VGELX.
I started with VGENX in 1997 with $6,607.25 transferred from another Vanguard fund I had. My logic was
based on a rather simple idea of what product is being sold every minute of the day somewhere in the world 24 hours a day, that product was gaselene. So, all it's crude oil counterparts etc. lie within this fund which in the early days had 51 stocks the same as the fund number. You need 100 grand to start in this fund now.
Usually a nice div./cap gains every year.
2007 was HUGE in terms of cap gains. I reinvested and lost on those reinvested share at this time.
But this fund has the potential to outperform stocks and it has.
One little oil outtage somewhere and this fund is back
<<< This would be part of an IRA, so it is a long time horizon. How do you think this sector will perform vs. other sectors over the next 20 years? >>>
Both Vanguard Energy and the Precious metal funds
have huge upside potential... check the internet
for facts on "Peak oil" and "Peak gold".
Oil and gold will trend upwards for years to come.
any downward swing of 10% or more should be
considered a HUGE buying oportunity..
I've had this fund for a little over a year. I plan for it to be a very long term holding.
My plan is to add to it during winters, when people are afraid that oil is going back to $30 a barrel.
I did this last year and it paid off well. As most people know the world's oil supply is decreasing and becoming harder to find, while at the same time demand is growing dramatically from India and China.
And the expense ratio is superb.