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Investing - Theory, News & General • VIG & VIGI: What's the catch?

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When I say massively, I guess I was looking at the risk involved as well. Max drawdown of -41% vs -50% with similar performance, is very attractive. Would you say this risk-adjusted return is a fluke?
VIG actually has underperformed VTI for the last 10 years:

https://www.portfoliovisualizer.com/bac ... xPKYtNs4hI

It is a good fund. I don't think that it would be unreasonable to use it for a US stock allocation as long as you can stay the course with it should it underperform in some period. It may overperform. It may underperform. I have never invested in it.

In a taxable account, once it has a considerable unrealized capital gain, you may find that married to it till death do you part. That probably is my primary objection to it, though the same could be said about any fund one holds in a taxable account.

It has a portfolio beta less than one, so is less sensitive to market moves than the total market (with a beta of 1). But exposure to the quality factor provides an additional source of return, enabling it more or less to keep up with the market as long as the quality factor has a positive return.

https://www.portfoliovisualizer.com/fac ... QrqaKBvYmz

Statistics: Posted by Northern Flicker — Sat Oct 26, 2024 2:04 am — Replies 89 — Views 10793



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