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The Independent Adviser for Vanguard Investors
•
May 2016
•
9
FOR CUSTOMER SERVICE, PLEASE CALL
800-211-7641
PERFORMANCE REV I EW
VANGUARD VARIABLE ANNUITIES
Fund (fund #)
Advice
4/29
Price
Apr.
Return
YTD
Return
12-Mo.
Return
3-Year
Return
5-Year
Return Risk
Money Market Annuity (64)
— $1.90
0.0% 0.0% -0.0% -0.1% -0.2% —
Short-Term Inv.-Grade Annuity (144)
Buy
$18.90
0.5% 2.1% 1.8% 1.5% 1.9% 0.45
Total Bond Market Annuity (67)
Hold
$38.07
0.3% 3.3% 2.3% 1.8% 3.1% 1.00
High-Yield Bond Annuity (146)
Buy
$30.30
2.6% 5.0% 0.2% 2.6% 5.2% 1.85
Conservative Allocation Annuity (801)
Hold
$26.48
0.6% 2.8% 0.2% 4.4% — 0.43
Moderate Allocation Annuity (803)
Hold
$28.47
0.7% 2.4% -1.0% 5.3% — 0.61
Balanced Annuity (69)
Buy
$85.11
1.4% 3.3% 1.2% 7.2% 7.9% 0.67
Capital Growth Annuity (603)
Buy
$38.92
-0.5% -2.2% -1.6% 11.9% 11.3% 0.98
Diversified Value Annuity (145)
Buy
$29.12
3.3% 3.8% -0.6% 8.2% 9.3% 0.97
Equity Income Annuity (8)
Buy
$73.85
1.1% 4.3% 3.4% 9.8% 11.2% 0.93
Equity Index Annuity (68)
Buy
$81.68
0.3% 1.6% 0.8% 10.8% 10.5% 1.00
Growth Annuity (10)
Hold
$40.73
-0.8% -4.2% -1.2% 12.8% 11.1% 1.04
MidCap Index Annuity (143)
Buy
$46.99
0.5% 1.6% -3.7% 9.9% 9.1% 1.07
REIT Index Annuity (147)
Hold
$56.45
-2.4% 3.6% 7.3% 6.7% 9.5% 1.34
Small Company Growth Annuity (160)
Hold
$62.38
1.3% -1.1% -7.8% 8.8% 8.0% 1.38
Total Stock Market Annuity (604)
Hold
$29.61
0.6% 1.4% -0.6% 10.3% 10.0% 1.02
International Annuity (86)
Buy
$36.58
2.1% -0.4% -10.3% 2.4% 1.4% 1.25
Our ratings:
BUY: Best choice. Generally funds held in our
Model Portfolios or funds with similar objectives. HOLD:
Current prospects for the fund are not as good as those with
a Buy rating. However, investors who own shares in the fund
may wish to assess tax costs of trading into a Buy-rated fund.
SELL: The fund’s long-term prospects are not as compelling as
other funds’, or other factors may make the fund unattractive
compared to alternatives. “+” is a rating upgrade over the
previous month; “-” is a downgrade.
Investors should weigh all tax implications of fund switches
before making a sale or purchase. Some closed funds are
available for purchase by high-net-worth investors. All funds
charge a $20 annual account fee unless you have $10,000 in
the fund, $100,000 with Vanguard or accept all paperwork
through online means.
Minimum
refers to the dollar amount (e.g., $3K means
$3,000) needed to open a new taxable account.
Loads
are
denoted with an “f” for front-end and “r” for back-end.
Holding periods are noted for loads imposed on sales of
shares held less than two months (<2 mo.) or one year (<1).
3-year
and
5-year returns
are compound, annualized
returns.
Average maturity
is in years for bond funds and
days for money market funds.
12-month yields
are based
on trailing 12-month dividend/income distributions.
SEC
yields
are reported 30-day yields.
Taxable equivalent
yields
are based on SEC yields. For state funds, taxable
equivalent yields incorporate state taxes.
Risk
is fund vola-
tility measured over the previous 24 months. Equity fund risk
is measured against the S&P 500 index. Bond fund risk is
measured against the Barclays Aggregate Bond index.
Annuity ratings
May differ from taxable funds since choices
in the annuity area are more limited.
* Tax equivalent yields incorporate the 3.8% health care sur-
tax into the 33%, 35% and 39.6% tax rates.
** Fund sold with a 0.75% front-end load
*** Fund sold with a 0.25% front-end load
VANGUARD INCOME FUNDS
Fund (fund #)
Ticker Advice
Avg.
Mat.
4/29
Price
Apr.
Return
YTD
Return
12-Mo.
Return
3-Year
Return
5-Year
Return
12-Mo.
Yield
SEC
Yield
—— Tax Equivalent Yield ——
Risk
25% 28% 36.8%
*
38.8%
*
43.4%
*
TAXABLE INCOME
Ultra-Short-Term Bond (1492)
VUBFX
Buy 1.1 $10.00
0.1% 0.6% 0.7% — — 0.7% 0.86% — — — — — —
Short-Term Treasury (32)
VFISX
Sell
2.3 $10.75 -0.0% 1.2% 1.1% 0.7% 0.9% 0.7% 0.53% — — — — — 0.35
Short-Term Federal (49)
VSGBX
Sell
2.7 $10.81 -0.0% 1.3% 1.3% 0.8% 1.2% 0.9% 0.90% — — — — — 0.34
Short-Term Inflation Index (1967)
VTIPX
Hold 2.5 $24.56 -0.0% 1.7% 0.5% -0.5% — 0.0% -0.87% — — — — — 0.64
Short-Term Investment-Grade (39)
VFSTX
Buy 3.2 $10.72
0.4% 2.2% 2.0% 1.7% 2.2% 2.0% 1.69% — — — — — 0.44
Short-Term Bond Index (132)
VBISX
Hold 2.8 $10.56
0.1% 1.7% 1.6% 1.1% 1.5% 1.3% 1.08% — — — — — 0.46
Inflation-Protected Sec. (119)
VIPSX
Hold 8.6 $13.45
0.1% 4.8% 0.9% -1.1% 2.4% 0.7% -0.22% — — — — — 1.51
Intermed. Treasury (35)
VFITX
Sell
5.6 $11.56 -0.1% 3.3% 3.2% 1.6% 3.4% 1.6% 1.14% — — — — — 1.21
Intermed. Investment-Grade (71)
VFICX
Buy 6.5 $9.96
0.7% 4.3% 3.6% 2.9% 4.7% 3.0% 2.43% — — — — — 1.08
Intermed.-Term Bond Index (314)
VBIIX
Hold 7.3 $11.67
0.5% 4.5% 3.5% 2.4% 4.8% 2.6% 2.11% — — — — — 1.37
Total Bond Market (84)
VBMFX Hold 8.0 $10.92
0.4% 3.5% 2.5% 2.1% 3.4% 2.4% 1.98% — — — — — 1.00
Core Bond (1320)
VCORX
Buy 6.7 $10.07
0.4% — — — — — 1.47% — — — — — —
GNMA (36)
VFIIX
Hold 5.7 $10.79
0.2% 2.1% 2.2% 2.3% 3.1% 2.4% 2.38% — — — — — 0.64
Long-Term Treasury (83)
VUSTX
Sell
24.8 $13.00 -0.6% 7.6% 5.2% 4.3% 8.9% 2.6% 2.28% — — — — — 3.87
Long-Term Investment-Grade (28)
VWESX Hold 23.2 $10.59
1.9% 8.8% 5.7% 4.8% 8.5% 4.2% 3.68% — — — — — 2.83
Long-Term Bond Index (522)
VBLTX
Sell
24.2 $14.18
1.3% 8.8% 4.1% 3.8% 8.2% 3.8% 3.56% — — — — — 2.97
High-Yield Corporate (29)
VWEHX Buy 6.8 $5.71
2.6% 5.0% 0.5% 3.0% 5.7% 5.6% 5.42% — — — — — 1.91
Emerging Mkts. Gov’t Bond Idx. (1120)** VGOVX
Buy 10.2 $9.73
1.8% 6.5% 3.7% — — 4.5% 4.14% — — — — — 1.91
Emerging Markets Bond (1431)
VEMBX
— 8.5 $10.33
2.0% — — — — — 4.67% — — — — — —
Total International Bond Index (1231)
VTIBX
Hold 9.2 $10.85 -0.2% 3.3% 3.0% — — 1.5% 0.63% — — — — — 1.03
MONEY MARKET
Treasury MM (11)
VUSXX
— 41 $1.00
0.0% 0.1% 0.1% 0.0% 0.0% 0.1% 0.26% — — — — — —
Federal MM (33)
VMFXX
— 48 $1.00
0.0% 0.1% 0.1% 0.1% 0.0% 0.1% 0.29% — — — — — —
Prime MM (30)
VMMXX — 43 $1.00
0.0% 0.1% 0.2% 0.1% 0.1% 0.2% 0.43% — — — — — —
Tax-Exempt Money Market (45)
VMSXX
— 27 $1.00
0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.30% 0.4% 0.4% 0.5% 0.5% 0.5% —
CA Tax-Exempt MM (62)
VCTXX
— 15 $1.00
0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.22% 0.3% 0.3% 0.4% 0.4% 0.4% —
NJ Tax-Exempt MM (95)
VNJXX
— 44 $1.00
0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.23% 0.3% 0.4% 0.4% 0.4% 0.4% —
NY Tax-Exempt MM (163)
VYFXX
— 21 $1.00
0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.25% 0.4% 0.4% 0.4% 0.4% 0.5% —
OH Tax-Exempt MM (96)
VOHXX
— 40 $1.00
0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.26% 0.4% 0.4% 0.4% 0.5% 0.5% —
PA Tax-Exempt MM (63)
VPTXX
— 15 $1.00
0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.22% 0.3% 0.3% 0.4% 0.4% 0.4% —
TAX-FREE INCOME
Short-Term Tax-Exempt (41)
VWSTX Buy 1.5 $15.83
0.1% 0.4% 0.8% 0.6% 0.8% 0.7% 0.65% 0.9% 0.9% 1.0% 1.1% 1.1% 0.11
Limited-Term Tax-Exempt (31)
VMLTX
Buy 3.0 $11.07
0.3% 0.9% 2.0% 1.3% 1.8% 1.5% 0.88% 1.2% 1.2% 1.4% 1.4% 1.6% 0.36
Intermed.-Term Tax-Exempt (42)
VWITX
Buy 5.2 $14.45
0.6% 2.3% 4.8% 3.1% 4.7% 2.8% 1.36% 1.8% 1.9% 2.2% 2.2% 2.4% 0.68
Tax-Exempt Bond Index (1491)***
VTEBX Hold 5.5 $10.34
0.7% 2.3% — — — — 1.45% 1.9% 2.0% 2.3% 2.4% 2.6% 0.76
Long-Term Tax-Exempt (43)
VWLTX Hold 6.3 $11.94
0.9% 2.8% 6.4% 4.3% 6.2% 3.6% 1.90% 2.5% 2.6% 3.0% 3.1% 3.4% 0.86
High-Yield Tax-Exempt (44)
VWAHX Hold 6.8 $11.50
0.9% 2.8% 6.3% 4.4% 6.7% 3.6% 2.44% 3.3% 3.4% 3.9% 4.0% 4.3% 0.85
STATETAX-FREE
CA Intermed. Tax-Exempt (100)
VCAIX
Buy 5.3 $12.02
0.6% 2.3% 5.1% 3.6% 5.4% 2.7% 1.28% 1.9% 2.0% 2.3% 2.3% 2.5% 0.70
CA Long-T. Tax-Exempt (75)
VCITX
Sell
6.5 $12.41
0.8% 2.8% 6.7% 4.7% 6.9% 3.4% 1.72% 2.6% 2.7% 3.0% 3.1% 3.4% 0.87
MA Tax-Exempt (168)
VMATX Sell
6.2 $11.09
0.8% 2.6% 6.0% 4.0% 5.5% 3.0% 1.68% 2.4% 2.5% 2.8% 2.9% 3.1% 0.89
NJ Long-T. Tax-Exempt (14)
VNJTX
Sell
6.2 $12.29
0.9% 2.8% 5.8% 3.6% 5.6% 3.5% 2.36% 3.5% 3.6% 4.1% 4.2% 4.6% 1.00
NY Long-T. Tax-Exempt (76)
VNYTX
Sell
6.0 $12.10
0.8% 2.7% 6.4% 4.3% 5.8% 3.2% 1.66% 2.4% 2.5% 2.9% 3.0% 3.2% 0.81
OH Long-T. Tax-Exempt (97)
VOHIX
Sell
6.2 $12.86
0.9% 2.8% 6.5% 4.4% 6.1% 3.3% 1.90% 2.7% 2.8% 3.2% 3.3% 3.6% 0.88
PA Long-T. Tax-Exempt (77)
VPAIX
Sell
5.6 $11.87
0.9% 2.5% 6.0% 4.2% 5.8% 3.5% 1.96% 2.7% 2.8% 3.2% 3.3% 3.6% 0.81