Managed Funds Vanguard managed fund

Discussion in 'Shares & Funds' started by Kelly88, 13th Jul, 2019.

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  1. Kelly88

    Kelly88 Well-Known Member

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    Hi,

    For everyone that invested in Vanguard managed fund, which one do you use?

    Do you use the equivalent of VAS/VGS or high growth fund?

    Thanks

    Kelly
     
    Kelly88, 13th Jul, 2019
    #1
  2. sfdoddsy

    sfdoddsy Well-Known Member

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    I have the Wholesale Australian Share Fund, International Share Fund and International Small Cap Fund.

    I'm probably going to add the Property and Infrastructure funds.
     
    sfdoddsy, 15th Jul, 2019
    #2
  3. Zenith Chaos

    Zenith Chaos Well-Known Member

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    Investment should be tailored to an individual. Thus, my investments shouldn't necessarily be what you invest in.

    Your age and risk tolerance should define your strategy. If you are young and have a high risk tolerance you should be almost 100% equities. To diversify you might choose VAS, VGS and VGE in appropriate percentages. If you have a lower risk tolerance then you could increase your allocation to risk free assets like government bonds or cash.

    Not advice
     
    Zenith Chaos, 15th Jul, 2019
    #3
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  4. geoffw

    geoffw Moderator Staff Member

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    I don't think your terminology is correct.

    You refer Vanguard managed funds, but then mention two ETFs, which are index funds, rather than managed funds. A managed fund has a manager deciding which shares to invest in, while an Exchange Traded Find invests purely on the shares in an index - there's no active management at all. In this way, the running costs of an ETF are car smaller than those of a managed fund.
     
    geoffw, 16th Jul, 2019
    #4
  5. The Falcon

    The Falcon Well-Known Member

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    Not so. Vanguard classifies it’s unlisted index funds and its unlisted active funds as managed funds. You can see at this link ;

    Low-cost managed funds | ETFs

    Vanguards ETFs are for the most part a separate class of the unlisted funds and are by any measure very cheap for managed funds. They have one significant advantage over listed products for many - behavioral.
     
    The Falcon, 16th Jul, 2019
    #5
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  6. geoffw

    geoffw Moderator Staff Member

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    I clicked on the link, and found links to retail and wholesale managed funds, which did not include VAS or VGS, and ETFs, which did.

    Perhaps the term actively managed would be more meaningful. I have seen the term Managed Find applied to ETFs on Vanguard pages, but then there's this
    ETFs and managed funds:What's the difference?

    My understanding of an (actively) managed fund is one where a manager makes decisions on which shares to buy based on their own criteria, whereas an ETF is generally dictated purely by what shares are in an index, and what proportion - thus not requiring a skilled paid manager to choose. It's partially just a pedantic differentiation, but it does highlight just what an ETF is.
     
    geoffw, 16th Jul, 2019
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  7. PurpleTurtle

    PurpleTurtle Well-Known Member

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    I think there are two different aspects getting confused here:

    Actively managed vs index.
    Exchange traded vs unlisted.

    By definition, an ETF is exchange traded. And there are actively managed ETFs, they're not all index based. eg:
    Active ETFs | Actively Managed Funds | BetaShares

    A "managed fund" has traditionally referred to an unlisted fund. They can be index based, they don't have to be actively managed. eg:
    Investment Products
     
    PurpleTurtle, 16th Jul, 2019
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  8. The Falcon

    The Falcon Well-Known Member

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    Note OPs post ; “equivalent of”

    Re your post, you should be using the terminology of index fund not ETF. An index fund can either be listed as an exchange traded fund, or unlisted. The management mechanism is the same - index full or partial replication.
     
    The Falcon, 16th Jul, 2019
    #8
  9. geoffw

    geoffw Moderator Staff Member

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    Ok, fair point on both counts.

    Vanguard themselves are contributing to the confusion IMO.
     
    Last edited: 16th Jul, 2019
    geoffw, 16th Jul, 2019
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  10. The Falcon

    The Falcon Well-Known Member

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    Jack Bogle was trying to get the use of "Traditional Index Funds" off the ground to delineate between "mutual funds" (in our case "managed funds") and unlisted index funds. I'm happy to go with this.
     
    The Falcon, 18th Jul, 2019
    #10
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  11. Never giveup

    Never giveup Well-Known Member

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    I have to go through the provided links to get better understanding now as I was also under the impression:-

     
    Never giveup, 25th Apr, 2020
    #11
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