What do you think about this fund VGSIX for part of a diversified
portfolio? The yield is about 5% and growth has been good these past
few years. I am waiting for interest rates to rise and the real estate
market to cool down before I buy into VGSIX. It would be for an IRA
anyway.
I've had it and it did really well in the last few years though this
year it has sucked. But I think it's a good fund to have as part of a
diversified portfolio.
--Ram
wrote:
> What do you think about this fund VGSIX for part of a diversified
> portfolio? The yield is about 5% and growth has been good these past
> few years. I am waiting for interest rates to rise and the real estate
> market to cool down before I buy into VGSIX. It would be for an IRA
> anyway.
Beware of this fund. The P/E ratio of the underlying holdings is
somewhere in the mid 30s. Ouch.
"hp" <> wrote
> Beware of this fund. The P/E ratio of the underlying holdings is
> somewhere in the mid 30s. Ouch.
>
Buy any single REIT with a much lower P/E, and it's probably one that's in
trouble.
Most REITs are perhaps overvalued now, but if one wants REITs to diversify a
long-term portfolio, VGSIX is probably a superior way to go.
"Elle" <> wrote
> Most REITs are perhaps overvalued now, but if one wants REITs to diversify
> a
> long-term portfolio, VGSIX is probably a superior way to go.
"probably". ok, got it.
I use this fund for my son's college savings. Up until this year, it has
done very well.
"Elle" <> wrote in message
news:3N89e.8861$
> "hp" <> wrote
>> Beware of this fund. The P/E ratio of the underlying holdings is
>> somewhere in the mid 30s. Ouch.
>>
>
> Buy any single REIT with a much lower P/E, and it's probably one that's in
> trouble.
>
> Most REITs are perhaps overvalued now, but if one wants REITs to diversify
> a
> long-term portfolio, VGSIX is probably a superior way to go.
>
>
wrote:
> What do you think about this fund VGSIX for part of a diversified
> portfolio? The yield is about 5% and growth has been good these past
> few years.
I owned VGSIX for years but I sold it early this year.
It's a good REIT fund, but I think the bull market in REITs generally is
coming to an end. The ratio of the dividend yield to the price is lower
than at any time in the last decade. That strongly suggests that REITs
are overvalued at this time.
A better entry point will come along in future years. Don't buy now.
--
Steven D. Litvintchouk
Email:
Remove the NOSPAM before replying to me.
I don't thing I understand your post. You are saying the ratio of the
dividend yield to the price ((Annual Dividend/Price)/Price) is lower than
anytime in the last decade. Then you mean Annual Dividend/Price^2 is lower
than anytime in the last decade. What does this mean? Why not just look at
dividend yield? I know there are some writers harping that REITS are over
priced.
"Steven L." <> wrote in message
news:3Gz9e.9438$
>
>
> wrote:
>
>> What do you think about this fund VGSIX for part of a diversified
>> portfolio? The yield is about 5% and growth has been good these past
>> few years.
>
> I owned VGSIX for years but I sold it early this year.
>
> It's a good REIT fund, but I think the bull market in REITs generally is
> coming to an end. The ratio of the dividend yield to the price is lower
> than at any time in the last decade. That strongly suggests that REITs
> are overvalued at this time.
>
> A better entry point will come along in future years. Don't buy now.
>
>
> --
> Steven D. Litvintchouk
> Email:
>
> Remove the NOSPAM before replying to me.
>
NoEd wrote:
> I don't thing I understand your post. You are saying the ratio of the
> dividend yield to the price ((Annual Dividend/Price)/Price) is lower than
> anytime in the last decade. Then you mean Annual Dividend/Price^2 is lower
> than anytime in the last decade. What does this mean?
You're right, I misspoke.
I should have just said the average dividend yield has fallen to low
levels for the past decade.
--
Steven D. Litvintchouk
Email:
Remove the NOSPAM before replying to me.