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I recently inherited a Vanguard IRA from my cousin. He was invested in VWNAX, an actively-managed fund. For the moment, I stuck with it. It's probably not a fund I would have bought into on my own but it certainly isn't bad as funds go. As the estate process nears completion, I'm starting to look at what I've ended up with so that I can figure out what to do going forward.
VWNAX has an ER of 0.26%.
The 1, 3, 5, and 10-year returns are 45.92%, 16.36%, 15.23%, and 13.48% respectively.
Certainly, pretty respectable all around. However, would an index fund be better?
VTSAX has an ER of 0.04%
The 1, 3, 5, and 10-year returns are 44.33, 18.75, 17.90, and 14.70% respectively.
So the active fund ER is 6.5 times higher and except for the 1-year return, the index fund had better performance for every other time period.
Yes, I will be converting over to the index fund once everything settles down.
VWNAX has an ER of 0.26%.
The 1, 3, 5, and 10-year returns are 45.92%, 16.36%, 15.23%, and 13.48% respectively.
Certainly, pretty respectable all around. However, would an index fund be better?
VTSAX has an ER of 0.04%
The 1, 3, 5, and 10-year returns are 44.33, 18.75, 17.90, and 14.70% respectively.
So the active fund ER is 6.5 times higher and except for the 1-year return, the index fund had better performance for every other time period.
Yes, I will be converting over to the index fund once everything settles down.
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