Comments on: Vanguard or T. Rowe Price Funds: Actively Managed vs. Index Funds http://thefinancebuff.com/vanguard-or-t-rowe-price-funds-actively.html like a friend telling you about money ... Fri, 10 Feb 2012 17:31:35 +0000 hourly 1 http://wordpress.org/?v=3.1.2 By: Sam Pittsburgh http://thefinancebuff.com/vanguard-or-t-rowe-price-funds-actively.html#comment-5559 Sam Pittsburgh Thu, 06 Jan 2011 12:48:28 +0000 http://blog.thefinancebuff.com/?p=106#comment-5559 Good topic...I have both ($1.4M)...I also have Scott Trade and after 20 some years with TRP I have migrated funds to Vanguard for lower (index) fees.... - On any given day, I seem to conclude performance goes to TRP but they also pump up the products and KEY: Vanguard stokc trades are $2 for Voyager Slect clients (over $500k) and $10 for TRP...yes, that is nickels and dimes but Scott Tarde Is $7.23 a trade....KEY is resource tools...TRP offers Morningstar research and also TurboTax software.... I can reach TRP on the phone (e.g. weekends, etc.) than Vanguard (closed; hence lower fees)... I would conclude to go with Vanguard for the busy individual (me) and stay with index funds...I prefer this approach but I started with TRP in the early 90s and have not fully left them but am migrating to Vanguard... Good topic…I have both ($1.4M)…I also have Scott Trade and after 20 some years with TRP I have migrated funds to Vanguard for lower (index) fees….

- On any given day, I seem to conclude performance goes to TRP but they also pump up the products and KEY: Vanguard stokc trades are $2 for Voyager Slect clients (over $500k) and $10 for TRP…yes, that is nickels and dimes but Scott Tarde Is $7.23 a trade….KEY is resource tools…TRP offers Morningstar research and also TurboTax software….

I can reach TRP on the phone (e.g. weekends, etc.) than Vanguard (closed; hence lower fees)…

I would conclude to go with Vanguard for the busy individual (me) and stay with index funds…I prefer this approach but I started with TRP in the early 90s and have not fully left them but am migrating to Vanguard…

]]> By: Mike http://thefinancebuff.com/vanguard-or-t-rowe-price-funds-actively.html#comment-5553 Mike Wed, 05 Jan 2011 03:09:48 +0000 http://blog.thefinancebuff.com/?p=106#comment-5553 I suppose index funds where the returns are about the same, it's best to go with the lowest cost funds but I'm not surprised that TRW beats VG in actively managed funds. Most return schedules ranking funds rate of returns has TRW beating VG. I suppose index funds where the returns are about the same, it’s best to go with the lowest cost funds but I’m not surprised that TRW beats VG in actively managed funds. Most return schedules ranking funds rate of returns has TRW beating VG.

]]> By: JC http://thefinancebuff.com/vanguard-or-t-rowe-price-funds-actively.html#comment-1793 JC Sat, 28 Mar 2009 02:13:20 +0000 http://blog.thefinancebuff.com/?p=106#comment-1793 I have a rollover IRA in a T. Rowe Price account. I chose them because relative to the other brokers they offered me the lowest fees (or at least I thought they did) and given the amount of money I was rolling over they would waive the management fees on the accounts also. However, with the dive the market took after the Lehman Brothers collapse I have been hit hard as I suspect has everyone else. I am hoping my fund will recover in the next 5 or 6 years. I used to own Vanguard Total Stock Market Index but I gave that up when I saw how little returns I was getting. I have a rollover IRA in a T. Rowe Price account. I chose them because relative to the other brokers they offered me the lowest fees (or at least I thought they did) and given the amount of money I was rolling over they would waive the management fees on the accounts also. However, with the dive the market took after the Lehman Brothers collapse I have been hit hard as I suspect has everyone else. I am hoping my fund will recover in the next 5 or 6 years. I used to own Vanguard Total Stock Market Index but I gave that up when I saw how little returns I was getting.

]]> By: JMW http://thefinancebuff.com/vanguard-or-t-rowe-price-funds-actively.html#comment-634 JMW Sat, 03 May 2008 03:01:00 +0000 http://blog.thefinancebuff.com/?p=106#comment-634 I think an active fund is reasonable if you can convince yourself that the active management is really providing value. If not then stick to the index fund. I suspect that for most people, most of the time, the latter is true. I think an active fund is reasonable if you can convince yourself that the active management is really providing value. If not then stick to the index fund. I suspect that for most people, most of the time, the latter is true.

]]> By: Anonymous http://thefinancebuff.com/vanguard-or-t-rowe-price-funds-actively.html#comment-506 Anonymous Fri, 14 Mar 2008 05:36:00 +0000 http://blog.thefinancebuff.com/?p=106#comment-506 I own both Price funds and Vanguard Index Funds. Index funds can be compared, and Vanguard's low fees, especially once your account exceeds 50-100K, cannot be beat. The performance of non-index mutual funds has to be adjusted for market returns (easy), and better yet, for risk (hard).<br/><br/>Index funds make for an easier life in o so many ways. With an index fund, I do not have to worry about changes in management personnel (e.g., Peter Lynch retires early), or fees creeping upward. (Vanguard Index funds now charge as little as 7 basis points.) Index funds never close to new investors. A flood of new money never causes an index fund to invest in mediocre stuff. Index funds have tiny cash reserves. Index funds means that a glance at a market index gives me a good idea of how I'm doing.<br/><br/>The decline the US$ has seen in recent years has made almost every international fund a winner. No reason to believe this will continue indefinitely, however. I own both Price funds and Vanguard Index Funds. Index funds can be compared, and Vanguard’s low fees, especially once your account exceeds 50-100K, cannot be beat. The performance of non-index mutual funds has to be adjusted for market returns (easy), and better yet, for risk (hard).

Index funds make for an easier life in o so many ways. With an index fund, I do not have to worry about changes in management personnel (e.g., Peter Lynch retires early), or fees creeping upward. (Vanguard Index funds now charge as little as 7 basis points.) Index funds never close to new investors. A flood of new money never causes an index fund to invest in mediocre stuff. Index funds have tiny cash reserves. Index funds means that a glance at a market index gives me a good idea of how I’m doing.

The decline the US$ has seen in recent years has made almost every international fund a winner. No reason to believe this will continue indefinitely, however.

]]> By: MossySF http://thefinancebuff.com/vanguard-or-t-rowe-price-funds-actively.html#comment-116 MossySF Wed, 25 Apr 2007 18:42:00 +0000 http://blog.thefinancebuff.com/?p=106#comment-116 My story about active versus index. More than a decade ago, I was looking for an International fund. The fund that caught my interest was Janus Worldwide -- great performance the previous decade and so on. So I decided that was my choice - got all the forms to submit and then noticed it said Janus Worldwide was closed to new investors. Not wanting to deal with fund picking again, I decided on Janus Overseas thinking 2 international funds from the same company probably would have similar philosphies.<br/><br/>Since then, Janus Overseas has returned about 12% annualized while Worldwide about 5%. So pretty much random luck increased my return by over 200%. Reflection upon this situation spurred me to move everything to index funds. My story about active versus index. More than a decade ago, I was looking for an International fund. The fund that caught my interest was Janus Worldwide — great performance the previous decade and so on. So I decided that was my choice – got all the forms to submit and then noticed it said Janus Worldwide was closed to new investors. Not wanting to deal with fund picking again, I decided on Janus Overseas thinking 2 international funds from the same company probably would have similar philosphies.

Since then, Janus Overseas has returned about 12% annualized while Worldwide about 5%. So pretty much random luck increased my return by over 200%. Reflection upon this situation spurred me to move everything to index funds.

]]> By: samerwriter http://thefinancebuff.com/vanguard-or-t-rowe-price-funds-actively.html#comment-114 samerwriter Tue, 24 Apr 2007 21:13:00 +0000 http://blog.thefinancebuff.com/?p=106#comment-114 I saw that post and the first thing I thought was, "He's picking arbitrary funds between two fund companies, and trying to compare them".<br/><br/>There's no way to wind up with a reasonably fair comparison without looking at volatility as well.<br/><br/>About the closest thing you can get to an apples-to-apples comparison is to compare index funds. And the returns there won't differ much between families. That's where Vanguard's low expenses really shine. I saw that post and the first thing I thought was, “He’s picking arbitrary funds between two fund companies, and trying to compare them”.

There’s no way to wind up with a reasonably fair comparison without looking at volatility as well.

About the closest thing you can get to an apples-to-apples comparison is to compare index funds. And the returns there won’t differ much between families. That’s where Vanguard’s low expenses really shine.

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