UT selected a fund apparently using Vanguard's fund picker (not using professional advise).
Quote:
Originally Posted by Undertoad
Personally I would be more in the growth fund - and I am (my choice is VSEQX), even though I'm a little older than you.
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Well UT outperformed the market; if he got out on or before the end of last year.
Unfortunately, if UT did not get out last year, then he underperformed the market AND lost all four years of profits. Had he invested in a DJIA or an S&P500 index fund (funds without experts selecting the investements), then UT would have outperformed the Vanguard Strategic Equity fund. His investment was no better than an index fund starting Jan 2007 and then became worse than an index fund on Thanksgiving 2007.
Again, the chart is the past four years with VT's fund in blue and the DJIA in red.