Author Topic: VHCAX/VUVLX into VTSAX  (Read 361 times)

StacheyNotTrashy

  • 5 O'Clock Shadow
  • *
  • Posts: 8
VHCAX/VUVLX into VTSAX
« on: December 26, 2020, 12:35:06 PM »
Howdy 'stachers-
I'm doing an end-of-year finances review and considering making investment changes to my Vanguard Roth IRA. My current holdings are 60% VHCAX and 40% VUVLX total around $120,000 (USD). I'm considering transferring these into 100% VTSAX. With VHCAX being an actively-managed fund it has a higher expense ratio that I'd like. This fund is closed to new investors, so once I sell I'm out forever.

VUVLX is also a closed fund that will be merged into Vanguard Value Index (I'm assuming that's VVIAX) in January 2021 pending shareholder approval.

Is there any reason I shouldn't transfer these into VTSAX for a Roth IRA investment? My wife and I currently have holdings in VTI and VFIAX but no VTSAX.

Thanks!

MustacheAndaHalf

  • Magnum Stache
  • ******
  • Posts: 4425
Re: VHCAX/VUVLX into VTSAX
« Reply #1 on: December 28, 2020, 06:04:25 AM »
Vanguard Value ETF is up 0.23% year to date (YTD), while the overall stock market is up 19.46% YTD.
https://etfdb.com/etf/VTV/#performance
https://etfdb.com/etf/VTI/#performance

What chance do you give for value outpacing the overall market?  Maybe you could allocate that percentage to Vanguard Value, and the rest to a total stock market fund.

Other than the total stock market, I have a small-cap pure value ETF that has done really well.  But maybe it's done recovering, since it's down less than -5% YTD.  Not really sure what comes next for value index vs total stock market index.