Vanguard Asset Allocation Fund Review (VAAPX)
<pThis is an independent Vanguard Asset Allocation Fund Review (VAAPX). All information is publicly available and legally optioned.
This fund was set up to be made up of 65% S&P 500 stocks and 35% of long term treasury bonds but it did not always follow this. In the year 2008, during the height of the recession, the investment percentage of stock was at 100% and the fund suffered because of this strategy.
The current stock price as of 11/23/09 was at $21.85 per share. The 52 week range fluctuation of the stock as at a high of $21.92 and a low of $14.35. There are over $9.0 billion in total assets invested in this fund with a 5% turnover rate and a yield of 2.07%. The minimum investment for this fund is $3000. The Morningstar risk measure of this fund is high risk with low return.
At present the ratio of stocks to bonds is 70% for stocks and 30% for bonds. There are 500 different stock and 35 bonds that make up the investments of this fund. The top ten stocks make up 13.2% of the total net assets. The top ten are Exxon Mobil Corp., Microsoft Corp., Procter and Gamble Co., Apple Inc., JPMorgan Chase and Co., Johnson and Johnson, International Business Machine Corp., Chevron Corp., General Electric Co., and AT&T Inc.
Since its inception date on 11/03/1988, this fund has had a total return after taxes of 8.65%. The 10 year annualized return is at $1.60%. The 5 year annualized return is 0.51% and the 1 year annualized return is -9.60%
This independent Vanguard Asset Allocation Fund Review (VAAPX) seems a little wary of investing in this fund because of the management strategy not being followed in the past which caused severe losses last year. They seem to be back on track for now and this Vanguard Fund should show signs of improvement.