Vanguard Health Mutual Fund

am 26.02.2006 23:59:29 von anothername

Vanguard Health Mutual Fund has been underperforming the SP500 since
Jan 1 of this year. Anyone know "why"?

Re: Vanguard Health Mutual Fund

am 27.02.2006 00:43:18 von Ell

Do you realize that, in the scheme of investing, this is a very short time
frame over which you're tarrying?

Over short periods, a sound mutual fund is likely going to do better and
worse than the S&P 500, depending on the point in time chosen. You should
buy for the long-term. Do not panic when a fund with holdings in companies
you think are well run and will be profitable sees a decline. Particularly
with a fund company as reputable as Vanguard.

Allocate per your risk tolerance. Do not put all your eggs in one's basket.
Don't think that watching the daily machinations of one's investments and
trying to explain them is anything more than numerology.

"Doug" <> wrote
> Vanguard Health Mutual Fund has been underperforming the SP500 since
> Jan 1 of this year. Anyone know "why"?
>

Re: Vanguard Health Mutual Fund

am 27.02.2006 03:55:15 von rono

Hi Doug,

I can agree with Elle - it's 8 weeks, right? I wouldn't worry, nor
care. It's a good fund and within their offerings, makes a great
addition to ones portfolio.

Sit tight and forget this one as long as you're diversified - it's a
keeper until you are waaay old and grey - at least for 30+ years.

About the only thing you need to concern yourself with over time is
taking profits when you rebalance out of this fund . . . and that's a
good thing.

best,

rono

Re: Vanguard Health Mutual Fund

am 27.02.2006 16:25:15 von Norm De Plume

Doug wrote:

> Vanguard Health Mutual Fund has been underperforming the SP500 since
> Jan 1 of this year. Anyone know "why"?

How did it do last year?

Better + reasonable valuations + no bad news foreseen for health care =
market taking a breather.

Re: Vanguard Health Mutual Fund

am 27.02.2006 16:39:38 von Norm De Plume

Re: Vanguard Health Mutual Fund

am 27.02.2006 16:39:54 von Norm De Plume

Re: Vanguard Health Mutual Fund

am 28.02.2006 21:34:02 von Dave Hannes

"Elle" <> wrote in message
news:q2rMf.1209$
> Do you realize that, in the scheme of investing, this is a very short time
> frame over which you're tarrying?
>
> Over short periods, a sound mutual fund is likely going to do better and
> worse than the S&P 500, depending on the point in time chosen. You should
> buy for the long-term. Do not panic when a fund with holdings in companies
> you think are well run and will be profitable sees a decline. Particularly
> with a fund company as reputable as Vanguard.
>
> Allocate per your risk tolerance. Do not put all your eggs in one's
> basket. Don't think that watching the daily machinations of one's
> investments and trying to explain them is anything more than numerology.
>
> "Doug" <> wrote
>> Vanguard Health Mutual Fund has been underperforming the SP500 since
>> Jan 1 of this year. Anyone know "why"?

Couple thoughts:
1. Elle's right...it is a short time frame...they could easily have had a
few holdings drag down their portfolio...hopefully temporary.
2. How's the sector been doing? Maybe most healthcare stocks are down?
3. Look at what they are investing in...there really are only 4 sectors of
healthcare:
1) Providers, e.g. hospitals and clinics
2) Financial, e.g. insurance companies and HMO's
3) Rx
4) Medical device manufacturers

Providers could have margin pressures, as boomer physicians retire;
insurance companies are facing rising costs and the prospect of large
numbers of insureds transferring onto Medicare within the next 5-7 years.

Rx could see price caps imposed and still face rising R&D plus approval
costs.

The best sector for the long haul might just be device manufacturers.

D