SNS Bank offers nine different Vanguard funds. I don’t think there are more funds available for the Dutch private investor at this particular moment anyway. The funds are:
Vanguard U.S. Opportunities Fund – mostly U.S. stocks, active management – TER 0.95% – USD
I would never invest in this fund, it’s actively managed which goes against the whole idea of passive investing which I strongly believe in. Plus, it’s too expensive!
Vanguard Japan Stock – MSCI Japan Index, passive – TER 0.5% – USD
Why in the world would I want to put money in the Japan stock index?? Beats me! This one is off the list as well.
Vanguard US 500 Stock Index – S&P 500, passive – TER 0.38% – USD
Lowest TER for stocks on offer and this fund is promoted by authors of books and articles plus PF bloggers, books whose opinions I take seriously. Also, I think this is the least bumpy ride when it comes to stocks. Correct me if I’m wrong. It’s also a bit more volatile for non-U.S. citizens because our euros are converted into dollars.
Vanguard Global Stock Index – MSCI World Free Index, passive – TER 0.5% – EUR
You can’t go wrong spreading risk across the globe, now can you? TER is also acceptable.
Vanguard European Stock Index – MSCI Europe Index, passive – TER 0.5% – EUR
I find this fund a bit tricky. To be honest I have no idea whether it’s a sensible option because I haven’t read about its performance during the past century and I don’t know whether that information is available. The husband felt like investing in this fund.
Vanguard Emerging Markets Stock Index – MSCI Emerging Markets Index, passive – TER 0.65% – EUR
This fund will surely provide a rollercoaster ride! One year it’ll increase by 35% and the other year you’ll lose 50%. The husband thinks there are more growth possibilities here and he invests in this fund.
My opinion is that the best performing European and Emerging Markets stocks are already in the global fund anyway. Therefore, I decided not to throw money into a European fund and Emerging Market fund separately.
Vanguard Euro Investment Grade Bond Index – Capital Global Aggregate Euro Non—Government Float Adjusted Bond Index, passive – TER 0.4% – EUR
Don’t know enough about this fund to invest in it.
Vanguard Euro Government Bond Index – Global Aggregate Euro Government Float Adjusted Bond Index, passive – TER 0.3% – EUR
I invest in this fund because it feels like a “safe” bet. TER is also great.
Vanguard U.S. Government Bond Index – Global Aggregate U.S. Government Float Adjusted Bond Index, passive – TER 0.3% – USD
I do not invest in this fund. Should I?
You can invest automatically from €100 per Vanguard fund on a monthly basis. If you’d like to dump more money into a fund in one go the minimum is €500.
My portfolio consists of 80% Vanguard Global Stock Index and 20% Vanguard Euro Government Bond Index. At the end of this month I’ll start adding Vanguard U.S. 500 Stock Index starting with €100 a month so the percentage in my portfolio will slowly increase.
My husband’s portfolio consists of 34% Vanguard Global Stock Index, 33% Vanguard European Stock Index and 33% Emerging Markets Stock Index.
Any thoughts on our portfolio?
Which fund should we invest in if we’d like to invest a couple of thousand euros in one go?