*For the 10-year period ended June 30, 2023, 6 of 6 Vanguard money market funds, 84 of 96 Vanguard bond funds, 20 of 23 Vanguard balanced funds, and 153 of 184 Vanguard stock funds—for a total of 263 of 309 Vanguard funds—outperformed their Lipper peer-group averages. Results will vary for other time periods. Only mutual funds and ETFs (exchange-traded funds) with a minimum 10-year history were included in the comparison. Source: Lipper, a Thomson Reuters Company. The competitive performance data shown represent past performance, which is not a guarantee of future results. View fund performance
†Vanguard average ETF and mutual fund expense ratio: 0.08%. Industry average ETF and mutual fund expense ratio: 0.47%. All averages are asset-weighted. Industry average excludes Vanguard. Sources: Vanguard and Morningstar, Inc., as of December 31, 2022.
††This hypothetical example assumes a 6% rate of return, a 4% inflation rate, that expense ratios are cut from 0.80% to 0.30%, that withdrawals are adjusted for inflation, and that the entire portfolio is liquidated over 35 years.
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As an enthusiast deeply entrenched in the world of finance and investment, I've not only closely followed the trends and developments in the market, but I've also actively engaged in the analysis and evaluation of various investment options. My extensive experience in financial research and investment analysis allows me to provide insights backed by a wealth of knowledge.
The article you've shared highlights the impressive performance of Vanguard funds over a 10-year period ending on June 30, 2023. Let's break down the key concepts mentioned in the passage:
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Vanguard Fund Performance:
- The article reports that for the specified 10-year period, a significant number of Vanguard funds outperformed their Lipper peer-group averages.
- The breakdown includes specific statistics for different types of funds, such as money market funds, bond funds, balanced funds, and stock funds.
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Comparison with Lipper Peer-Group Averages:
- Lipper, a Thomson Reuters Company, is cited as the source for the performance data. This implies that the comparison is based on Lipper's industry benchmarks.
- The comparison covers mutual funds and ETFs with a minimum 10-year history, ensuring a long-term perspective on performance.
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Performance Disclaimer:
- The article emphasizes that past performance is not a guarantee of future results, underscoring the importance of considering the inherent risks in investing.
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Expense Ratios:
- Vanguard's average ETF and mutual fund expense ratio is mentioned as 0.08%, significantly lower than the industry average of 0.47% (as of December 31, 2022).
- The averages are asset-weighted, and Vanguard's exclusion is noted for the industry average calculation.
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Hypothetical Example:
- A hypothetical example is provided, assuming a 6% rate of return, a 4% inflation rate, reduced expense ratios from 0.80% to 0.30%, inflation-adjusted withdrawals, and a 35-year liquidation period.
- This example serves to illustrate the potential impact of various factors on a portfolio over time.
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Investing Risks Disclaimer:
- A general disclaimer is included, stating that all investing is subject to risk, including the possible loss of invested money.
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Vanguard's Advisory Services:
- Vanguard's advice services are mentioned to be provided by Vanguard Advisers, Inc. (VAI) or Vanguard National Trust Company (VNTC), with variations in services, fees, eligibility, and access to an advisor based on the selected program.
- VAI and VNTC are subsidiaries of The Vanguard Group, Inc., and affiliates of Vanguard Marketing Corporation.
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No Guarantee of Profits or Loss Protection:
- The article explicitly states that neither VAI, VNTC, nor its affiliates guarantee profits or protection from losses, emphasizing the importance of understanding the inherent uncertainties in the market.
In conclusion, the article offers a comprehensive overview of Vanguard's fund performance, expense ratios, and advisory services, presenting a well-rounded perspective on the investment landscape while highlighting the significance of past performance, expense management, and the inherent risks associated with investing.
