Jul 6th, 2009
June Showers? How My Model Portfolio Did Through June
We’ve gone from plummeting values early in the year to very large gains in March, April, and May; now, with more than half the year gone, let’s see how our portfolio has done both in June and year to date:
The majority of our portfolio is in the Vanguard Total Stock Market Index Fund (VTSMX); for the month of June it was down a bit, 2.81%, after its big run up in March, April, and May. However, year to date, it’s essentially flat–up .0018%. The Vanguard Total International Stock Fund (VGTSX) ended June down as well, 4.01%. For the year, however, the International fund is up a very healthy 9.99%. For the fixed income part of the Vanguard GNMA Fund (VFIIX) ended the month up a penny, 0.094% while continuing to pay a 4.65% yield, and for the year is up a tiny 0.38%; the Vanguard Total Bond Market Index Fund (VBMFX) was up quite a bit in June (for a bond fund), 0.89% while continuing to pay the 4.55% yield we love, and is up for the year 3.95%.
As you can see, even after the horrendous start we had to the year, all of our funds are up for 2009! Some of them are up just barely, which is as opportune a moment as any to talk about the importance of fees and taxes. Aside from our gain in VGTSX, it’s quite possible that lots–if not all–of our gains this year would be eaten by taxes in a taxable account, and fees would drive us into the negative. Since this portfolio is held in my 403(b), I don’t have to worry about taxes, and since these are all Vanguard funds, the expenses are about as low as they can be.
We’ll take a look in about a month and hope that July sends these results well into positive territory!
YOu have done very well with Vanguard this year I have seen a lot of people come off far worse.
jill