I've started to put away for a down payment for a house which I expect will take about 3 years or so. I'm trying to decide the best place to put the money. Obviously, it can't be too volatile, but I'm hoping to do better than a savings account.
Anyhow, I've read this article by MMM:
http://www.mrmoneymustache.com/2011/06/07/where-should-i-invest-my-short-term-stash/After which, I was pretty content to go with VFSTX. However, the article states that the fund over a 10 year period was giving 4-5% annual returns. The article is a few years old and if I look at the fund now and see it's 3 year average APR, it's 1.73%, which is right around what I could get from a CD.
I suppose one benefit of the fund is that I could more incrementally add to it.
Perhaps, the low 3 year rate is it's floor and it's bound to rebound (wishful thinking)? Then again, it can also do worse.
So, I'm not sure what option to go with. As of now, I've got 25k or so split between US & Intl Vanguard Index funds in a taxable Vanguard brokerage account, which is pretty gosh darn risky.
Any thoughts?