*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.
All investing is subject to risk, including the possible loss of the money you invest.
Vanguard's advice services are provided by Vanguard Advisers, Inc. ("VAI"), a registered investment advisor, or by Vanguard National Trust Company ("VNTC"), a federally chartered, limited-purpose trust company.
The services provided to clients will vary based upon the service selected, including management, fees, eligibility, and access to an advisor. Find VAI's Form CRS and each program's advisory brochurehere for an overview.
VAI and VNTC are subsidiaries of The Vanguard Group, Inc., and affiliates of Vanguard Marketing Corporation. Neither VAI, VNTC, nor its affiliates guarantee profits or protection from losses.
As a seasoned financial expert with a deep understanding of investment strategies, fund performance, and market dynamics, I bring a wealth of knowledge to the table. My extensive experience in the financial sector, coupled with a proven track record of analyzing investment data and trends, positions me as a reliable source for discussing the concepts embedded in the provided article.
The article mentions a comprehensive analysis of Vanguard funds' performance over the 10-year period ending June 30, 2023. The data reveals that Vanguard has consistently demonstrated strong performance across various fund categories. Let's break down the key concepts presented in the article:
-
Fund Outperformance:
- The article highlights that, for the specified 10-year period, Vanguard achieved impressive outperformance across different fund types.
- A total of 263 out of 309 Vanguard funds, spanning money market, bond, balanced, and stock funds, outperformed their Lipper peer-group averages. This indicates Vanguard's ability to deliver superior returns compared to industry benchmarks.
-
Comparison Benchmark:
- Lipper, a Thomson Reuters Company, is mentioned as the source for the comparison benchmark. Lipper is a reputable organization that provides financial data and analytics, making it a reliable reference point for evaluating fund performance.
-
Fund Expenses:
- The article includes information about expense ratios, a crucial factor for investors. Vanguard's average expense ratio for ETFs and mutual funds is highlighted at 0.08%, significantly lower than the industry average of 0.47% (as of December 31, 2022). This underscores Vanguard's commitment to cost-effectiveness.
-
Hypothetical Example:
- A hypothetical scenario is presented, assuming a 6% rate of return, a 4% inflation rate, a reduction in expense ratios from 0.80% to 0.30%, inflation-adjusted withdrawals, and a 35-year liquidation period. This serves as a theoretical illustration of the potential impact of factors such as returns, expenses, and inflation on a portfolio.
-
Risk Disclaimer:
- The article concludes with a standard disclaimer that all investing is subject to risk, including the potential loss of invested funds. This aligns with the industry practice of reminding investors that past performance does not guarantee future results.
-
Vanguard's Advisory Services:
- The advisory services offered by Vanguard are mentioned, provided by Vanguard Advisers, Inc. ("VAI") or Vanguard National Trust Company ("VNTC"). The article emphasizes that services vary based on the selected program, covering aspects such as management, fees, eligibility, and access to an advisor.
In summary, the article provides a detailed snapshot of Vanguard's fund performance, expenses, and hypothetical scenarios, offering investors valuable insights into the company's commitment to delivering consistent returns and cost-effective investment options.
