|Expense Ratio (net)||0.09%|
|Last Cap Gain||0.00|
|Morningstar Risk Rating||Average|
|Beta (3Y Monthly)||1.25|
|5y Average Return||N/A|
|Average for Category||N/A|
|Inception Date||Mar 25, 1999|
Note: This article is part of Morningstar's 2019 Portfolio Tuneup week. A version of this article appeared on Sept. 11, 2018. Tightening up all of the costs in a portfolio is one of the best ways to enhance your take-home return.
There are 66 long-term portfolios in all, designed to suit investors with varying proximities to retirement and preferences. There are portfolios composed of traditional mutual funds as well as exchange-traded funds. Given all of those variations--and especially the fact that their asset allocations vary so widely--it's no surprise that their performance varied, too.
The firm views tax costs as another line item that drags on investors' take-home returns, so it devotes research and educational efforts to matters of tax management. Many of its funds are designed with tax efficiency in mind. For example, the firm was an innovator in creating exchange-traded funds by making them share classes of already-existing index funds, a structure that enables shareholders in the firm's traditional index equity funds to enjoy tax efficiency on par with their ETF counterparts.
For retired investors in tax-deferred accounts, I've developed model bucket portfolios using Vanguard's lineup. In this portfolio series, tax efficiency takes center stage, with three bucket retirement portfolios geared toward Vanguard investors' taxable accounts. When investing inside of taxable accounts (that is, non-tax-advantaged retirement accounts), sensibly employing a few basic investment types can help limit taxable capital gains and taxable income distributions on an ongoing basis.
The broader S&P 500 has a long-term average return of nearly 9.8% for the last 90 years. Most funds fail to surpass the staggering return despite having high profile and skillful fund managers. But, there are some Vanguard funds that have been able to beat this return. Such funds have been able to provide healthy returns amid several market troughs and peaks that have occurred during this phase.Source: Shutterstock