|Expense Ratio (net)||0.04%|
|Last Cap Gain||0.00|
|Morningstar Risk Rating||Average|
|Beta (5Y Monthly)||1.00|
|5y Average Return||N/A|
|Average for Category||N/A|
|Inception Date||Nov 13, 2000|
The stock market gets a full day off for Memorial Day. The bond market gets Monday off too, not to mention an early close ahead of the holiday weekend.
Yahoo Finance's Ethan Wolff-Mann joins Seana Smith to explain why Goldman Sachs is warning the U.S. may be undercounting coronavirus cases by a massive margin, after the crushing jobs numbers last Friday pointed to 20.5 million fewer payrolls in April compared to March.
[Editor's note: "Take Buffett's Advice: 5 Vanguard Funds to Buy" was previously published in February 2020. It has since been updated to include the most relevant information available.]Vanguard should probably be thanking Warren Buffett.In Berkshire Hathaway's (NYSE:BRK.A, NYSE:BRK.B) 2014 shareholder letter, Buffett mentioned Vanguard funds in a big way.InvestorPlace - Stock Market News, Stock Advice & Trading TipsSpecifically, he recommended that the cash left to his wife be invested 10% in short-term government bonds and 90% in a very low-cost S&P 500 index fund. Not just any index fund mind you, but a Vanguard fund in particular. * 9 Healthcare Stocks to Buy Even After the Coronavirus Fades Whether it be exchange-traded funds (ETFs) or mutual funds, the Oracle of Omaha believes Vanguard funds are the way to go. With that in mind, I've put together a portfolio of two ETFs, two mutual funds and a fifth wildcard. The resulting portfolio should be appropriate for Buffett's wife -- or anyone else, for that matter. Vanguard 500 Index Fund Admiral Shares (VFIAX)Source: Casimiro PT / Shutterstock.com Allocation: 50% of Portfolio 10-Year Performance: 10.49%The goal is to keep costs to a minimum while generally sticking to Buffett's hypothesis when it comes to his wife's investments. Although Vanguard does offer commission-free ETFs, I recommend a mutual fund for the S&P 500 investment.The Vanguard 500 Index Fund Admiral Shares (MUTF:VFIAX) charges an annual expense ratio of just 0.04%, or $4 on a $10,000 investment.Your annual fees would amount to a mere $20 on a $50,000 portfolio. That's hard to beat, and Buffett knows it. The largest holdings in this fund include Microsoft (NASDAQ:MSFT), Apple (NASDAQ:AAPL) and Alphabet (NASDAQ:GOOG, NASDAQ:GOOGL). The minimum investment is $3,000. Vanguard Mid-Cap Index Fund Admiral Shares (VIMAX)Source: Shutterstock Allocation: 20% of Portfolio 10-Year Performance: 9.94% The VFIAX covers the large-capitalization portion of the portfolio quite nicely.While Buffett might not be fond of mid-cap stocks being added to the mix, evidence suggests mid-caps outperformed large-cap stocks over a four-year period between 2009 and 2013.In fact, John Hancock published a report cautioning investors about underweighting mid-caps because of an assumption that a large-cap fund combined with a small-cap fund will do the job. That's simply not the case.Mid-cap stocks tend to provide an attractive combination of risk and reward. For this reason, I recommend the Vanguard Mid-Cap Index Fund Admiral Shares (MUTF:VIMAX), which tracks the CRSP Mid Cap Index, an index composed of stocks that fall between the top 70%-85% of investable market capitalization. * 7 Beautiful Biotech Stocks to Buy Here They're big enough to survive an economic hit but small enough to still be growing. With an expense ratio of 0.05%, this entry on our list of Vanguard funds is giving you safety and performance in one. Top holdings include Newmont (NYSE:NEM), Centene (NYSE:CNC) and TransDigm (NYSE:TDG). Vanguard FTSE All-World ex-US Small-Cap ETF (VSS)Source: Shutterstock Allocation: 10% of Portfolio 10-Year Performance: 6.67% Although I just said mid-cap stocks are a key part of any portfolio and tend to outperform small-caps while utilizing less risk, there is always a place for small-caps in your portfolio.That's especially true when the two previous picks from Vanguard Funds are almost 100% invested in the U.S. with virtually no international exposure. For this reason, a little bit of love outside America makes total sense.My recommendation is to go with the Vanguard FTSE All-World ex-US Small-Cap ETF (NYSEARCA:VSS), a fund that tracks the performance of the FTSE Global Small Cap ex US Index, which consists of over 3,000 stocks in dozens of countries. Investing in both developed and emerging markets, the fund provides good exposure to some of the world's future stars at an annual expense ratio of just 0.12%.With such low fees, it's no wonder $6.8 billion is invested in this ETF. Vanguard Short-Term Treasury ETF (VGSH)Source: Shutterstock Allocation: 10% of Portfolio 5-Year Performance: 1.33% Buffett recommends that 10% of his wife's portfolio go to short-term government bonds. Vanguard Funds has an ETF that does exactly that.The Vanguard Short-Term Treasury ETF (NASDAQ:VGSH) invests in investment-grade U.S. government bonds with average maturities between one and three years. The risk, on a scale of one to five, is one -- meaning this Vanguard ETF is for conservative investors looking for stable share prices.And with an expense ratio of 0.05%, this ETF should give you peace of mind for your short-term needs. Vanguard Consumer Staples ETF (VDC)Source: Shutterstock Allocation: 10% of Portfolio 10-Year Performance: 10.67% On this final piece of the puzzle, I'm going defensive. The mutual fund version of the S&P 500 has less than 10% invested in consumer staples. I mean to remedy that by putting the final 10% in the Vanguard Consumer Staples ETF (NYSEARCA:VDC), a collection of 92 household names including Procter & Gamble (NYSE:PG) and Coca-Cola (NYSE:KO).Since its inception in 2004, VDC has had but one year of negative annual total returns, and that was in 2008 when it experienced a 17% decline -- 20 percentage points better than the S&P 500. When the you-know-what hits the fan, you'll be glad you own this particular low-cost ETF. It has an expense ratio of just 0.10%.It seems the "keep it simple" rule holds true, and Warren Buffett is the No. 1 follower.As of this writing, Will Ashworth did not own a position in any of the aforementioned securities. More From InvestorPlace * 2 Toxic Pot Stocks You Should Avoid * 10 Hot Stocks Staging Huge Reversals * 7 Under-The-Radar Growth Stocks That Could Benefit New Investors * 5 Excellent High-Yield Dividend Stocks to Buy The post Take Buffett's Advice: 5 Vanguard Funds to Buy appeared first on InvestorPlace.
If you find yourself in the enviable position of being able to ponder how to invest your stimulus check, thank your lucky stars ... for plenty of reasons.As you're well aware by now, the $2 trillion CARES Act rescue package included stimulus checks of up to $1,200 for most individuals living in the U.S. The sad reality is, many Americans will need every cent of that for day-to-day basics. But more than a few people are fortunate enough to be able to put that money to work. Anecdotally, a few friends have already asked me about how to invest their recently deposited stimulus checks. And more people are sure to wonder the same as the Treasury proceeds with its disbursements.The good news? Despite how ugly the market looks right now - in many cases, because the market looks so ugly right now - you've got options. And plenty of 'em.Today, we're going to look at how to invest your stimulus check. Because everyone's risk tolerance is a little different, we'll be exploring a variety of options - conservative, aggressive and a little in between. SEE ALSO: 20 Best Stocks to Buy Now for the Next Bull Market
ETF.com Managing Editor Cinthia Murphy joins Yahoo Finance's Seana Smith to break down the ETFs she's watch in Q2 amid market turmoil over the coronavirus.
A recession is the scariest creature in the average investor's closet of anxieties. Even though the last recession ended more than a decade ago, people fear recessions because they can mean lower home prices, lower stock prices - and no job.Any number of things can cause, or exacerbate, a recession: an exogenous shock, such as today's COVID-19 crisis (which now has even Federal Reserve chairman Jerome Powell admitting that we might currently be in a recession) or the Arab oil embargo of 1973; soaring interest rates; or ill-conceived legislation, such as the Smoot-Hawley Tariff Act of 1930.Recessions are parts of the warp and woof of a dynamic economy, albeit unpleasant ones. If you're prepared for a recession, there will be plenty of opportunities when the recession ends. Thus, the more you know about recessions, the better. Here are 10 must-know facts about recessions. SEE ALSO: Where Is the Stock Market Headed? 14 Wall Street Pros Sound Off
Getting a handle on the stock market's direction is becoming increasingly difficult as volatility has ratcheted up and daily moves of 5% or more have become commonplace. The S&P; 500 has already lost a third of its of its value from its Feb. 19, 2020, peak, and some (though not all) analysts see even lower prices ahead.Economists and market strategists are predicting that the 2020 bear market could descend as low as 60% losses as the economic fallout from the coronavirus outbreak begins to look very, very real. Small business owners are being forced to close up shop en masse. Many U.S. manufacturers, including the "Big Three" automakers, have halted production at their North American facilities. Airlines, cruise operators and hotel owners have seen their businesses rapidly dry up. Crude oil prices are in a deep bear market.Meanwhile, European and U.S. stimulus packages designed to back businesses and consumers alike have barely moved the needle. But those governments - and many more across the world - still are preparing even more measures to throw at the coronavirus effort.So where does the stock market go from here? Here's what 14 Wall Street investment bankers, analysts and financial advisors had to say about what's coming for America's stocks, the economy and corporate earnings. SEE ALSO: 25 Dividend Stocks the Analysts Love the Most
Mount Rushmore features massive 60-foot-tall busts of celebrated presidents George Washington, Thomas Jefferson, Abraham Lincoln and Theodore Roosevelt, each chosen for their respective roles in preserving or expanding the Republic. But if you were to make a Mount Rushmore for presidents based on stock market performance, none of these men would make the cut. There really was no stock market to speak of during the Washington, Jefferson and Lincoln administrations, and Teddy Roosevelt ranks as one of the worst-performing presidents of the past 130 years - at least as far as Wall Street is concerned.Just for grins, let's consider what a "stock market Mount Rushmore" might look like. (Yes, a president's actions aren't the only thing that moves the stock market, but in many cases throughout history, the commander in chief's decisions over time significantly contributed to how equities performed.) While we're at it, we'll rank every president that we can realistically include based on the available data - and that data includes a few caveats below.*The following is a ranking of every president since Benjamin Harrison (who, sneak preview, did not do very well) by stock market performance, in order from worst to best. SEE ALSO: 64 Dividend Stocks You Can Count On
Now that we're officially well into bear-market territory now, the question is: How do you invest in the midst of one?The Dow Jones Industrial Average dropped into bear territory on Wednesday, March 11. The S&P; 500 and Nasdaq followed suit the following day, as Thursday, March 12, saw the biggest drop in the stock market since the 1987 market crash. For those not versed in market lingo, a bear market is a decline of 20% or more in stocks. This is more severe than a stock market correction, which is a decline of 10% to just under 20%.These numbers are arbitrary, of course. As an investor, you don't necessarily care if your portfolio drops by exactly 20% or if it loses just 19%. But semantics aside, the bear market is here and growling with a vengeance.It's been a while since we've had a proper bear market - the last one was during the 2008 financial crisis. For a few, it's entirely possible that this is the first one you've had to live through as an investor.But even if you're a grizzled market veteran, this bear market - which is being fueled by a global pandemic, in the form of the COVID-19 coronavirus outbreak - has been full of surprises. It's the fastest bear market in history as measured by the length of time it took stocks to fall from new all-time highs to official bear territory. It took the Dow Industrials just 20 days to drop into bear territory, and the S&P; 500 and Nasdaq just 21.Today, we're going to cover the basics of how to invest in bear markets and make a portfolio action plan. The coming weeks might be rough, but we'll get through this together. SEE ALSO: 11 Defensive Dividend Stocks for Riding Out the Storm
When does the stock market open? While the market does have regular hours, trading doesn't stop when the major exchanges close.
Vanguard is best known as one of the foremost pioneers of low-cost investing, including in the exchange-traded fund (ETF) space. It's hardly alone in low costs anymore, of course. Providers such as Schwab, iShares and SPDR have all hacked away at each other with ever-shrinking fees.Don't sleep on Vanguard ETFs, however. The provider isn't always No. 1 among the cheapest index funds like it used to be, but it remains a low-cost leader across several classes. No matter where you look, it's usually among the least expensive funds you can buy.And expenses matter. Let's say you put $100,000 into Fund A and another $100,000 into Fund B. Both funds gain 8% annually, but Fund A charges 1% in fees while Fund B charges 0.5%. In 30 years, that investment in Fund A will be worth a respectable $744,335. But Fund B? It'll be worth $865,775. That's about $120,000 lost to fees and missed opportunity cost as those expenses suck away returns that could compound over time.Here, then, are eight of the best low-cost Vanguard ETFs that investors can use as part of a core portfolio. All of these index funds are among the least expensive in their class and offer wide exposure to their respective market areas. SEE ALSO: The 20 Best ETFs to Buy for a Prosperous 2020
Warren Buffett, chairman and CEO of Berkshire Hathaway (BRK.B), oversaw a fairly busy fourth quarter of buying and selling stocks. Berkshire made new investments in the retail and biotechnology sectors, all but dumped a couple of big names and even jumped on the index-investing bandwagon.We know what the greatest long-term investor of all time has been doing because the U.S. Securities and Exchange Commission requires all investment managers with more than $100 million in assets to file a Form 13F quarterly to disclose any changes in share ownership. These filings add an important level of transparency to the stock market and give Buffett-ologists a chance to get a bead on what he's thinking.When Buffett starts a new stake in some company, or adds to an existing one, investors take that as a vote of confidence. On the other hand, if he pares his holdings in a stock, it can spark investors to rethink their own investments.Here's the scorecard for what Berkshire Hathaway bought and sold during the three months ended Dec. 31, 2019, based on the most recent 13F that the company filed on Feb. 14. And remember: Not all "Warren Buffett stocks" are actually his picks. Some smaller positions are believed to be handled by lieutenants Ted Weschler and Todd Combs. SEE ALSO: Every Warren Buffett Stock Ranked: The Berkshire Hathaway Portfolio
All bets are off for 2020. We could talk about any number of potential growth catalysts or looming hurdles for the new year, but overshadowing them all is the chaos machine of the presidential election. The best ETFs to buy for 2020, as a result, are designed to take advantage of feasible political outcomes, calmly weather the storm or barrel forward regardless of what the new year brings.That's no prophecy of utter doom and gloom, mind you. Indeed, there are plenty of pockets of optimism to be found.2019's slowdown in worldwide economic growth might have kept stocks from roaring even louder than they did, but Morgan Stanley believes global GDP growth will rebound in 2020 - a potential driver for the market. FactSet, meanwhile, reports that the new year's estimated earnings growth rate for the S&P; 500 Index should come in at 9.6%, which is above the 10-year average. (Analysts are even more confident, looking for profit growth "just over 10%," according to Kiplinger's 2020 investing outlook.)That said, even the most hopeful of S&P; 500 targets for 2020 call for roughly 10%-11% returns - most are closer to the 5%-7% range, and a few are calling for flat performance or worse. So while you do want to anchor your portfolio with a few broad, go-anywhere funds, many of the best ETFs for the year ahead will have to attack specific slices of the market.Here are the 20 best ETFs to buy for 2020. This is an intentionally wide selection of ETFs that meet a number of different objectives. We don't suggest investors go out and stash each and every one of these funds in their portfolio; instead, read on and discover which well-built funds best match what you're trying to accomplish, from buy-and-hold income plays to high-risk, high-reward shots. SEE ALSO: The 30 Best Mutual Funds in 401(k) Retirement Plans