Vanguard

Discussion in 'Wealth Creation & Management' started by ShinyStuff, May 18, 2015.

  1. ShinyStuff

    ShinyStuff New Member

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    Ok, so tell me what you would think about investing $10K into Vanguard? The Aussie real estate returns are 30% for the past 6 months. Is it a ponzi? Is it too good to be true?

    I have no idea and I hope others here have more of an idea than me.

    Ta,

    Shiny.
     
  2. dingobiscuit

    dingobiscuit New Member

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    I assume you are talking about their Exchange traded funds?
    I think some of the vanguard ETF's are really good and management fees are low. However I would see these ETF's are a medium term 5-7 years proposition. If you were looking into their Australian property fund I would want to be fairly confident that you did not believe in a housing bubble popping anytime soon (which is becoming more and more speculated). A snap shot of 6 months is fairly short term in the scheme of things and a 30% gain if you had already bought in would be awesome however buying in at highs after a spike would seem dangerous.

    The housing market is so hot right now I would not want to throw any fuel on that fire and watch it burn if/when it does.

    You could always invest in their other funds such as VAS which I believe should give you some exposure to the property market but also a larger sector Australian businesses (mainly financial I believe) to spread your risk. Or put half into VAS and half into VEU (all world excluding US) or their US fund (cant remember the name) or 1/3rd into each.

    Look into 'dollar cost averaging' as well if this is money that you are not just playing with for fun. The stock market could do anything and property may go to the moon some more so go with your gut at the end of the day.

    I am only contributing with the research that I have done and am not giving any financial advice. Posting in the stocks forum area might yield better info on Vangaurd stock products.
     

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