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The Independent Adviser for Vanguard Investors
•
August 2016
•
9
FOR CUSTOMER SERVICE, PLEASE CALL
800-211-7641
PERFORMANCE REV I EW
VANGUARD VARIABLE ANNUITIES
Fund (fund #)
Advice
7/29
Price
July
Return
YTD
Return
12-Mo.
Return
3-Year
Return
5-Year
Return Risk
Money Market Annuity (64)
— $1.90
0.0% 0.1% 0.0% -0.1% -0.1% —
Short-Term Inv.-Grade Annuity (144)
Buy
$19.12
0.4% 3.3% 3.2% 2.2% 2.0% 0.46
Total Bond Market Annuity (67)
Hold
$39.04
0.6% 5.9% 5.6% 3.8% 3.2% 0.99
High-Yield Bond Annuity (146)
Buy
$31.12
2.1% 7.8% 3.7% 4.3% 5.6% 1.76
Conservative Allocation Annuity (801)
Hold
$27.44
2.1% 6.5% 4.5% 5.7% — 0.43
Moderate Allocation Annuity (803)
Hold
$29.63
2.7% 6.6% 3.6% 6.4% — 0.62
Balanced Annuity (69)
Buy
$88.42
2.4% 7.3% 5.1% 7.6% 9.5% 0.67
Capital Growth Annuity (603)
Buy
$41.72
6.4% 4.8% 5.1% 12.9% 14.1% 1.03
Diversified Value Annuity (145)
Buy
$30.10
2.9% 7.3% 2.6% 7.3% 11.4% 0.96
Equity Income Annuity (8)
Buy
$77.88
2.3% 10.0% 9.7% 9.8% 13.6% 0.91
Equity Index Annuity (68)
Buy
$86.33
3.6% 7.4% 5.1% 10.7% 12.9% 1.00
Growth Annuity (10)
Hold
$43.60
6.0% 2.5% 0.6% 13.0% 13.4% 1.08
MidCap Index Annuity (143)
Buy
$49.99
4.6% 8.1% 2.0% 10.0% 11.9% 1.07
REIT Index Annuity (147)
Hold
$64.28
4.2% 18.0% 21.7% 14.2% 12.5% 1.39
Small Company Growth Annuity (160)
Hold
$68.05
6.8% 7.9% -1.3% 8.1% 11.2% 1.35
Total Stock Market Annuity (604)
Hold
$31.37
4.0% 7.5% 4.0% 10.1% 12.5% 1.02
International Annuity (86)
Buy
$38.10
5.6% 3.8% -2.5% 3.2% 3.5% 1.29
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.
7/29
Price
July
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 1.3 $10.01 -0.0% 1.0% 1.0% — — 0.9% 0.81% — — — — — —
Short-Term Treasury (32)
VFISX
Sell
2.3 $10.78 -0.1% 1.8% 1.5% 1.0% 0.8% 0.8% 0.45% — — — — — 0.37
Short-Term Federal (49)
VSGBX
Sell
3.0 $10.85
0.0% 1.9% 1.9% 1.4% 1.2% 1.0% 0.78% — — — — — 0.35
Short-Term Inflation Index (1967)
VTIPX
Hold 2.6 $24.72 -0.2% 2.4% 1.6% 0.2% — 0.0% -0.69% — — — — — 0.62
Short-Term Investment-Grade (39)
VFSTX
Buy 3.4 $10.80
0.4% 3.5% 3.4% 2.5% 2.3% 2.0% 1.50% — — — — — 0.44
Short-Term Bond Index (132)
VBISX
Hold 2.8 $10.62
0.1% 2.6% 2.4% 1.7% 1.4% 1.3% 0.96% — — — — — 0.47
Inflation-Protected Sec. (119)
VIPSX
Hold 8.8 $13.75
0.7% 7.1% 4.7% 2.2% 1.9% 0.7% -0.27% — — — — — 1.46
Intermed. Treasury (35)
VFITX
Sell
5.8 $11.73
0.0% 5.3% 5.2% 3.4% 3.0% 1.6% 0.94% — — — — — 1.19
Intermed. Investment-Grade (71)
VFICX
Buy 6.6 $10.14
0.8% 7.0% 7.3% 5.0% 4.7% 2.9% 2.25% — — — — — 1.07
Intermed.-Term Bond Index (314)
VBIIX
Hold 7.3 $11.94
0.7% 7.6% 7.4% 5.1% 4.5% 2.5% 1.84% — — — — — 1.35
Total Bond Market (84)
VBMFX Hold 8.0 $11.14
0.6% 6.1% 5.9% 4.1% 3.4% 2.3% 1.74% — — — — — 1.00
Core Bond (1320)
VCORX
Buy 8.1 $10.30
0.8% — — — — — 1.73% — — — — — —
GNMA (36)
VFIIX
Hold 5.0 $10.86
0.2% 3.3% 3.9% 4.0% 2.9% 2.4% 1.86% — — — — — 0.55
Long-Term Treasury (83)
VUSTX
Sell
25.0 $14.14
2.0% 17.8% 17.3% 11.8% 9.7% 2.4% 1.88% — — — — — 3.88
Long-Term Investment-Grade (28)
VWESX Hold 23.4 $11.22
2.8% 16.4% 16.6% 10.5% 9.0% 3.9% 3.32% — — — — — 2.80
Long-Term Bond Index (522)
VBLTX
Sell
24.3 $15.17
2.6% 17.5% 15.9% 10.3% 8.7% 3.5% 3.13% — — — — — 3.00
High-Yield Corporate (29)
VWEHX Buy 6.9 $5.79
2.0% 7.9% 4.2% 4.7% 6.0% 5.4% 5.01% — — — — — 1.82
Emerging Mkts. Gov’t Bond Idx. (1120)** VGOVX
Buy 10.0 $10.07
1.6% 11.5% 10.1% 6.2% — 4.4% 4.06% — — — — — 1.84
Emerging Markets Bond (1431)
VEMBX
— 9.6 $10.79
2.4% — — — — — 4.50% — — — — — —
Total International Bond Index (1231)
VTIBX
Hold 9.4 $11.20
0.9% 6.9% 7.6% 5.7% — 1.5% 0.42% — — — — — 1.03
MONEY MARKET
Treasury MM (11)
VUSXX
— 47 $1.00
0.0% 0.1% 0.2% 0.1% 0.0% 0.2% 0.25% — — — — — —
Federal MM (33)
VMFXX
— 46 $1.00
0.0% 0.2% 0.2% 0.1% 0.1% 0.2% 0.31% — — — — — —
Prime MM (30)
VMMXX — 41 $1.00
0.0% 0.2% 0.3% 0.1% 0.1% 0.3% 0.45% — — — — — —
Tax-Exempt Money Market (45)
VMSXX
— 31 $1.00
0.0% 0.1% 0.1% 0.0% 0.0% 0.1% 0.36% 0.5% 0.5% 0.6% 0.6% 0.6% —
CA Tax-Exempt MM (62)
VCTXX
— 24 $1.00
0.0% 0.1% 0.1% 0.0% 0.0% 0.1% 0.29% 0.4% 0.4% 0.5% 0.5% 0.6% —
NJ Tax-Exempt MM (95)
VNJXX
— 43 $1.00
0.0% 0.1% 0.1% 0.0% 0.0% 0.1% 0.29% 0.4% 0.4% 0.5% 0.5% 0.6% —
NY Tax-Exempt MM (163)
VYFXX
— 25 $1.00
0.0% 0.1% 0.1% 0.0% 0.0% 0.1% 0.31% 0.5% 0.5% 0.5% 0.6% 0.6% —
OH Tax-Exempt MM (96)
VOHXX
— 42 $1.00
0.0% 0.1% 0.1% 0.0% 0.0% 0.1% 0.32% 0.5% 0.5% 0.5% 0.6% 0.6% —
PA Tax-Exempt MM (63)
VPTXX
— 23 $1.00
0.0% 0.1% 0.1% 0.0% 0.0% 0.1% 0.28% 0.4% 0.4% 0.5% 0.5% 0.5% —
TAX-FREE INCOME
Short-Term Tax-Exempt (41)
VWSTX Buy 1.5 $15.86
0.1% 0.9% 1.1% 0.8% 0.8% 0.8% 0.61% 0.8% 0.8% 1.0% 1.0% 1.1% 0.13
Limited-Term Tax-Exempt (31)
VMLTX
Buy 2.9 $11.11
0.2% 1.7% 2.5% 1.9% 1.7% 1.5% 0.81% 1.1% 1.1% 1.3% 1.3% 1.4% 0.36
Intermed.-Term Tax-Exempt (42)
VWITX
Buy 5.3 $14.56 -0.0% 3.7% 6.1% 5.1% 4.4% 2.7% 1.21% 1.6% 1.7% 1.9% 2.0% 2.1% 0.67
Tax-Exempt Bond Index (1491)***
VTEBX Hold 5.5 $10.49 -0.1% 4.1% — — — 1.3% 1.26% 1.7% 1.8% 2.0% 2.1% 2.2% 0.74
Long-Term Tax-Exempt (43)
VWLTX Hold 6.3 $12.10 -0.2% 5.1% 8.3% 7.2% 6.0% 3.5% 1.65% 2.2% 2.3% 2.6% 2.7% 2.9% 0.85
High-Yield Tax-Exempt (44)
VWAHX Hold 6.6 $11.72 -0.0% 5.7% 9.1% 7.4% 6.4% 3.5% 2.13% 2.8% 3.0% 3.4% 3.5% 3.8% 0.84
STATETAX-FREE
CA Intermed. Tax-Exempt (100)
VCAIX
Buy 5.4 $12.11 -0.1% 3.7% 6.2% 5.6% 5.0% 2.6% 1.11% 1.6% 1.7% 2.0% 2.0% 2.2% 0.69
CA Long-T. Tax-Exempt (75)
VCITX
Sell
6.7 $12.59 -0.3% 5.1% 8.6% 7.8% 6.5% 3.3% 1.50% 2.2% 2.3% 2.6% 2.7% 3.0% 0.89
MA Tax-Exempt (168)
VMATX Sell
6.1 $11.23 -0.2% 4.6% 7.6% 6.9% 5.3% 2.9% 1.44% 2.0% 2.1% 2.4% 2.5% 2.7% 0.89
NJ Long-T. Tax-Exempt (14)
VNJTX
Sell
6.3 $12.53
0.1% 5.7% 9.0% 6.7% 5.5% 3.4% 2.07% 3.0% 3.2% 3.6% 3.7% 4.0% 0.99
NY Long-T. Tax-Exempt (76)
VNYTX
Sell
6.1 $12.26 -0.1% 4.8% 8.0% 7.1% 5.6% 3.1% 1.39% 2.0% 2.1% 2.4% 2.5% 2.7% 0.82
OH Long-T. Tax-Exempt (97)
VOHIX
Sell
6.1 $13.06 -0.2% 5.2% 8.4% 7.4% 5.9% 3.2% 1.62% 2.3% 2.4% 2.7% 2.8% 3.1% 0.87
PA Long-T. Tax-Exempt (77)
VPAIX
Sell
5.9 $12.02 -0.1% 4.7% 7.7% 7.0% 5.6% 3.4% 1.71% 2.4% 2.5% 2.8% 2.9% 3.1% 0.80