Yes, Vanguard is cheap. But you can do it even cheaper yourself (2024)

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The Sunday Times

Yes, Vanguard is cheap. But you can do it even cheaper yourself (2)

The Sunday Times

Investors can build a bespoke version of Vanguard’s LifeStrategy 100% Equity fund for half the price. Vanguard, founded in the US in 1975, made its name by offering passive funds — those that track the stock market, a market index or a specific area of the market — with low fees, made more affordable because they aren’t overseen by well-paid managers. Most of its funds use a computer algorithm to track popular stock or bond market indices, such as the S&P 500 in the US, the UK’s FTSE 100 or the global MSCI World.

The popular LifeStrategy range blends company shares with bonds issued by companies and governments. You can choose between five funds that hold 20 per cent to 100 per cent in company

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As an enthusiast with a deep understanding of investment and financial topics, I can confidently delve into the content of the provided article.

The article discusses Vanguard, a renowned investment firm founded in the US in 1975. Vanguard is widely recognized for its pioneering approach to passive funds, which are investment funds that track the stock market, market indices, or specific areas of the market. The distinguishing feature of Vanguard's approach is its utilization of low-cost passive strategies, which means that the funds are not actively managed by high-salaried fund managers. Instead, they often rely on computer algorithms to track popular stock or bond market indices.

One notable product mentioned in the article is Vanguard's LifeStrategy 100% Equity fund. This fund is part of the broader LifeStrategy range, which blends company shares with bonds issued by companies and governments. The article highlights that investors have the option to build a customized version of the LifeStrategy 100% Equity fund for half the price. This emphasizes the cost-effectiveness of Vanguard's passive investment approach.

Furthermore, the LifeStrategy range offers investors a choice between five funds, each holding different percentages of company shares, ranging from 20% to 100%. The article implies that investors can tailor their investment strategy within the LifeStrategy range based on their risk tolerance and investment goals.

In summary, Vanguard's innovative approach to passive funds, particularly the LifeStrategy range, provides investors with cost-effective options to gain exposure to a diversified portfolio of company shares and bonds. The use of computer algorithms for tracking market indices aligns with Vanguard's commitment to offering low-fee investment solutions.

Yes, Vanguard is cheap. But you can do it even cheaper yourself (2024)
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