 
With the market going down earlier this year, and back up just recently, it's the perfect time for an early midyear review. Dan takes a look at the record highs in major indexes around the world, and how much it will take to get back to those levels. Speaking of foreign markets, could Emerging Markets be a safe haven? Check out what Baillie Gifford’s Edward Hocknell has to say in this month's manager interview. And with April 15 just past, no doubt taxes are on your mind. But forget tax efficiency, think after-tax returns. Dan reports just which Vanguard funds give you the best returns even after you pay your dues in this month's issue, as well as special tax-efficiency tables in the News section of the website. [download the 718k PDF]
When it rains, it pours, but investors in Windsor II need not fear. Dan explains how Jim Barrow's prudent management protected the fund from the worst of Bear Sterns' sudden decline. And while Vanguard's value funds, including one U.S. investors may not have heard of, have suffered lately, it's markets like these that give top managers bargains that pay off for patient investors. As you may recall, Dan reported last year on how investing in the right funds just after a big market decline can boost your returns. This month, he provides an update on how buying the 3.5% drop on February 27, 2007, has worked out, and what to do about any similar drop in 2008. Of course, if you're a Treasury investor, tax-exempt yields are presenting an opportunity you shouldn't miss, and if you're a retiree, Dan has a savings and withdrawal plan for you. [download the 769k PDF]
As usual, Vanguard announced several fund manager changes in February. But that's not the only change: Vanguard will also have a new CEO. Dan discusses the implications of the new arrangements for Vanguard shareholders. Speaking of implications, does the 2008 volatility mean we should switch from stocks to bonds? Hear what the managers of Selected Value and Windsor II have to say. Finally, don't forget that you have until April 15 to help your child or grandchild make 2007 IRA contributions. It's never too early to start planning for retirement. [download the 1376k PDF]
With the extreme volatility in January, will we see a major bear market in 2008? Dan explains why the panic-ridden headlines are misleading. But that's not all that needs explaining—for instance, why did reinvestment of ETF distributions take so long at Vanguard Brokerage? And does anyone need the new MegaCap and upcoming Managed Payout funds? Meanwhile, this year's Hot Hands fund warrants caution, and you might be better off in some alternatives. [download the 1182k PDF]
2007 sure contained a few surprises, and as the new year begins, it's a good time to see what we can learn in hindsight. Dan reviews the events of the past year, as well as how his own calls fared, and reveals his outlook for 2008. Some pundits are crying the R-word, but what exactly defines a recession? And just where do the Fed's responsibilities lie when things get dicey? Dan answers those questions and asks a few of his own in an interview with Bill Ricks of AXA Rosenberg, the quant shop responsible for portions of Vanguard Explorer, U.S. Value, and its new Market Neutral fund. Speaking of which, Vanguard has introduced a slew of new funds in the past year, so don't forget to sign up pre-publication for the completely updated 2008 FFSA Independent Guide to the Vanguard Funds. Details can be found on page 16 of this month's issue. Happy New Year! [download the 1238k PDF]
It's at times of market stress that investors panic. But before you think about getting out or making big changes, Dan has one question for you. In this issue, he'll tell you about that and other tough questions for Vanguard's international funds, distribution season, and the annual year-end surge in money market yields. But take heart: Dan's recommendations will put your portfolio on track for even better returns going forward, and he has a few stocking stuffer suggestions for the holidays, too. [download the 1152k PDF]
Despite all the latest worries and threats, equity markets moved higher in October, and the Fed cut interest rates again. So with Tech Winter getting underway, and all the talk of large-cap growth coming back, is it finally time to buy U.S. Growth? Dan discusses each in detail this month, with a recap of Morningstar's more lenient views of the fund. And in addition to the best funds for Tech Winter, Dan reveals his new October Hot Hands fund and talks about U.S. Value's recent underperformance with its management team. But keep an eye on your account statements, and take a good look at the Vanguard errors Dan reports in this issue. And if you missed Dan's changes to the Model Portfolios in the October 4 Hotline, see the notes at the bottom of page 2 for exactly what to do. [download the 1221k PDF]
What a quarter! The stock market’s record high then subsequent tumble was enough to turn anyone’s hair a lighter shade of grey. But the Federal Reserve’s 50-basis point rate cut was the balm that soothed all wounds, and stock markets here and abroad closed the quarter with substantial gains. Change is on the horizon this month. Large cap growth stocks are moving, and we may be adding to our holdings soon. Dan also puts his Hot Hands strategy through a new test. He considers the new Megacap funds (are they really necessary?) and speaks with Selected Value’s Jim Barrow and Mark Giambrone.
[download the 1022k PDF]
Are the wild swings in the stock market these past few months a new paradigm in trading, or is it business as usual? Dan tackles that question this month. The good news is, while the markets weaved an unsteady course, our Model Portfolios stood strong. Dan also discusses why just one Balanced Fund will do and speaks with Robert Auwaerter, manager of Short-Term Investment Grade and Intermediate-Term Investment Grade, for his take on the subprime mess. [download the 1056k PDF]
It's celebration time: Today marks the 200th issue of The Independent Adviser for Vanguard Investors! Though it started under a different name, it has only gotten better with age. With this issue, Dan reaffirms his commitment to bringing you the best independent research on Vanguard. Meanwhile, bull markets can bring a false sense of security to investors, and so can Vanguard's claims about how well it protects your personal information. Dan takes a closer look at the Dow's fall from its record high on July 19 and tells how Vanguard blunders put one of his own accounts and that of an FFSA member at risk. He also reveals the inner workings of Vanguard funds through the eyes of the managers and demonstrates the problems with ETF distributions with real accounts he used to track them. Finally, if you have to be rich to invest in hedge funds, they must be great, right? Dan shows you the folly in the investing habits of the wealthy. [download the 1073k PDF]
Turns out, it pays more to be a Vanguard executive than it does to invest in Vanguard’s flagship 500 Index fund. Dan provides all the details on Vanguard’s Partnership Plan dividend in this month’s issue. He also takes a look at AXA Rosenberg, the newest quantitative manager taking pieces of both Explorer and U.S. Value, examines whether or not Lifecycle funds have what it takes to go the distance and interviews Global Equity’s John Chisholm. [download the 1010k PDF]
The end of May might have been a short week, but it certainly wasn't without its excitement. Even so, one must be prudent. In this issue, Dan talks about the recent market strength and how Vanguard's money market funds can provide smart ways to strengthen your portfolio. Meanwhile, he takes a hard look at just what Vanguard managers have money in their own funds. Also worrisome: is Vanguard's size affecting its quality of service? Finally, he provides a fresh update on U.S. Growth's performance for the last three years, and talks with manager Ford Draper of Explorer to see how the small-cap growth market is doing. [download the 685k PDF]
Despite expectations for abysmal first-quarter earnings, diversified businesses weathered the new year's economic and housing storms, according to early reports from about half of the companies in the S&P 500. But not all diversification is created equal. Some would argue that sector funds are a good way to diversify, but as Dan shows, while Vanguard's actively managed Health Care has been a great long-term investment, its sector index funds and ETFs don't stand up to careful scrutiny of not only returns, but risk. Speaking of risk, Dan discusses hidden risks in growth and value stocks with Joel Dickson of Vanguard's quantitative group. And while Vanguard reduced its quantity of fees, it replaced many of them with a new fee. Dan tells you how you can avoid them altogether. Finally, there is no way around it—you can't purchase PRIMECAP Odyssey Aggressive Growth or the other Odyssey Funds at Vanguard Brokerage. Dan tells you where you can. [download the 974k PDF]
A 3.5% drop is a great buying opportunity. But what should you buy? Dan tells you in this month’s issue. Dan also discusses some changes happening at Capital Opportunity--while it’s still a great fund, he has an even better alternative. With tax season upon us, you need to know that it’s not tax efficiency that matters, but after-tax returns. Finally, Dan interviews GNMA’s two lead managers for their take on the housing market. [download the 1024k PDF]
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