Why I like vanguard balanced fund VWIAX

  1. It handled the 2001 and 2007 crash very well
  2. Even though it has increased % of bonds. It performed better than other funds with a much lower bond ratio.
  3. It is ideal if you are beginning to invest when the market is very high.
  4. Lower fees for an actively managed fund.
  5. Steady returns.
  6. Survived two major market crash
  7. When I backtested this fund with other funds like VTSAX from 2001. It mostly outperformed
  8. However, you may not want to join this fund when the market is at the bottom of the crash. In this case, high stock ratio funds will be my choice with 90/10 allocation
  9. Looks like this fund outperformed other vanguards all in funds such as life strategy funds and Target retirement funds. ( When funded at market high)

Let me know what you think.

I have used an online tool called portfolio visualizer to backtest the portfolio.

See the performance of VTSAX and VWIAX on a graph on the different time frame.


 

VTSAX   Vs.  VWIAX   2002 to 2017

Screen Shot 2017-11-25 at 7.31.59 PM.png


 

 

VTSAX   Vs.  VWIAX   2007 to 2017

Screen Shot 2017-11-25 at 7.11.56 PM


 

 

VTSAX   Vs.  VWIAX   2009 to 2017

Screen Shot 2017-11-25 at 7.20.38 PM

So probably not recommended  VWIAX  at a lower point of the crash

But VWIAX may have a good starting point when the market is all time high.

 

 

Best book to read before you start investing.

The Simple Path to Wealth: Your roadmap to financial independence and a rich, free life

I like audiobook versions of this book

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