| Roth IRA Invested into this mutual fund |
|
|
|
|
|
slasher
Contributing Member
Cash: $ 6.65
Posts: 31
Joined: 27 Feb 2013
|
| Roth IRA Invested into this mutual fund |
 |
|
What do you guys think about this fund?
https://www.google.com/finance?q=MUTF:VGHCX
|
Wed Feb 27, 2013 4:30 pm |
|
|
oldguy
Senior Member
Cash: $ 751.85
Posts: 3656
Joined: 21 May 2006
Location: arizona
|
http://finance.yahoo.com/echarts?s=VGHCX+Interactive#symbol=vghcx;range=20030225,20130225;compare=^gspc;indicator=volume;charttype=area;crosshair=on;ohlcvalues=0;logscale=off;source=undefined;
The 10-year chart, against the SP500 'compare' chart shows almost tracking the SP500 until early 2012, then the SP500 pulls away.
I tend to avoid sector funds - they carry the risk of the generic market plus the risk of the sector - and IMO you don't get compensated for that extra risk. So I like the market index better - and the expense ratio is cheaper. 
But who is to know? Heathcare could go bad because of the obama central planning, lack of free market competition. Or 20 years from now we could have a completely different healthcare system where companies floursish.
|
|
Wed Feb 27, 2013 6:07 pm |
|
|
slasher
Contributing Member
Cash: $ 6.65
Posts: 31
Joined: 27 Feb 2013
|
|
|
|
quote:
Originally posted by oldguy
http://finance.yahoo.com/echarts?s=VGHCX+Interactive#symbol=vghcx;range=20030225,20130225;compare=^gspc;indicator=volume;charttype=area;crosshair=on;ohlcvalues=0;logscale=off;source=undefined;
The 10-year chart, against the SP500 'compare' chart shows almost tracking the SP500 until early 2012, then the SP500 pulls away.
I tend to avoid sector funds - they carry the risk of the generic market plus the risk of the sector - and IMO you don't get compensated for that extra risk. So I like the market index better - and the expense ratio is cheaper.
But who is to know? Heathcare could go bad because of the obama central planning, lack of free market competition. Or 20 years from now we could have a completely different healthcare system where companies floursish.
I was also considering diving into a index fund. I also have an REIT from vanguard.
I am still learning the hang of this all but I figured its better to jump in and make some money while I am still studying at least!
Good points though!
I hope to learn a lot from you oldguy.
|
|
Wed Feb 27, 2013 7:00 pm |
|
|
slasher
Contributing Member
Cash: $ 6.65
Posts: 31
Joined: 27 Feb 2013
|
quote:
Originally posted by coaster
quote:
Originally posted by slasher
....I figured its better to jump in and make some money while I am still studying at least!
Just so long as you realize you could also be "jumping in" to lose some money, as well. When you jump without looking ... or understanding ... then you're gambling, not investing.
That is a given but with investment I take the longterm view of things. Even if something happens the markets will eventually recover and since I am young I don't need as much liquidity in my money. I have a 1,000 dollar emergency fund and no credit card debt. I have savings accounts filled with money for various thinks like vacations and even starting to save some money for a 529 for my future kids. I am trying to get a jump on life but I have learned a lot pretty quick. I forgot to mention I am a finance major so I know the basics and a bit more than the average person. I am just inexperienced....an investment virgin 
|
|
Thu Feb 28, 2013 1:32 am |
|
|
|
