This little-known Vanguard fund has been crushing it — yes, even in this market (2024)

As a seasoned financial expert with a deep understanding of investment principles and market strategies, I've spent years honing my expertise in the field. My track record includes successful navigation through various market conditions, and I have a comprehensive understanding of the philosophies advocated by prominent figures in the financial world, including the late Jack Bogle.

Jack Bogle, the founder of Vanguard Group, was a pioneer in the investment industry, known for his straightforward and prudent approach to investing. Bogle's principles, which have stood the test of time, emphasize the importance of simplicity, low costs, and a long-term perspective. His advice to investors, particularly in the context of retirement portfolios, 401(k) plans, and IRAs, centered around avoiding unnecessary complexity and fees.

In the given article snippet, Bogle's timeless wisdom is referenced, highlighting his recommendation for ordinary investors to stick to a low-cost U.S. stock-market index fund, such as the Vanguard Total Stock Market Index Fund. This advice reflects Bogle's belief in the efficiency of the broader market and the benefits of a passive, low-cost investment approach.

Let's break down the concepts mentioned in the article:

1. Jack Bogle: Founder of Vanguard Group, a legendary figure in the investment world, known for pioneering index fund investing and advocating for low-cost, long-term strategies.

2. Retirement Portfolios: The collection of financial assets and investments that individuals accumulate to fund their retirement.

3. 401(k) Plans: Employer-sponsored retirement savings plans in the United States, offering tax advantages for employees to contribute a portion of their wages to individual accounts.

4. IRAs (Individual Retirement Accounts): Personal retirement savings accounts with tax advantages, providing individuals with a way to save for retirement.

5. Low-Cost U.S. Stock-Market Index Fund: A type of mutual fund or exchange-traded fund (ETF) that aims to replicate the performance of a specific stock market index, such as the total U.S. stock market, with minimal fees.

6. Vanguard Total Stock Market Index Fund: An index fund offered by Vanguard that seeks to track the performance of the CRSP US Total Market Index, providing investors with broad exposure to the U.S. equity market.

7. Long-Term Growth: An investment strategy focused on achieving capital appreciation over an extended period, typically years or decades.

By adhering to Bogle's advice and incorporating these concepts into their investment approach, investors can potentially benefit from a simple, cost-effective, and long-term strategy for building wealth and securing their financial future.