Vanguard Investments Interactive Index Chart

Try Vanguard Investments Interactive Index Chart

The Vanguard Investments Interactive Index Chart can display historical investment returns dynamically giving great insight into long term investment.

The Chart uses actual data from 1st January 1970 to 28 February 2011 with the standard asset classes. It also has charts on Economic Indicators and Exchange Rates.

Vanguard Investments Charts is an excellent tool for seeing the main asset classes have performed over the 41 year period. That is the time period for which many people will have their money in their retirement fund.

Whilst past performance is no indicator of future returns, you do get some great insight into what can happen over a forty year period that might affect your investments.

The dynamic nature of the chart means you can easily set some parameters and then use the other parameters to see the effect.

Although it is based on Australian investments it does have the S&P 500 US Shares as an asset class. However the most important thing is to get some understanding of how your investment returns can vary over the long term.

Vanguard Investments Interactive Charts

“What If” Analysis using Vanguard Investments Chart

I put my retirement nest egg into a managed fund in December 2006. I took it all out in November 2007 because I could not get any straight answers to my questions, on how the sub-prime mortgage crises was likely to affect my funds. It proved to me a “good move.

If you set the start date to 1 Dec 2006 and end date to 30 Nov 2007 you will see the result from my one and only year in a fund. It was a managed fund, but the asset classes were the same. I had a different balance of assets (it would have been good to be able to diversify the portfolio and adjust the amounts invested in each asset class but that is not a feature of the charts.)

Vanguard Investments with my portfolio

Vanguard Investments Interactive Charts results

If I had left my money in the fund then, where would I be now?

Vanguard Investments - What if Analysis

According to the chart I am down only 4%.

It was at this point when writing this post I thought about the post I wrote on my friend’s returns. In percentage terms his returns are nowhere near these returns, based on the data used by Vanguard. I have no reason to doubt the data supplied to Vanguard Investments by Andex Charts Pty Ltd.

So unless I have made a mistake or completely missed the point it bears investigation as to why there is such a wide discrepancy between the Vanguard/Andex returns based on historical data, and the actual returns to my friend.

How do the Returns Compare Percentage-wise?

The Vanguard Investments Chart results seems odd to me when compared to my friends returns that I presented in the recent post, “Baby Boomers Retirement Nest Egg Saga”.

  • Property losses have increased from -34.68% to -61.53%. (–49.39%)
  • Australian Share losses have increased from -17.64% to -43.04%. (-26.57%)
  • International Share losses were saved by the rise in the US dollar against the Aussie Dollar but still managed to increase from -23.56% to -31.83%. (-28.47%)
  • Overall losses on risk-based assets increased from -22.80% to -43.33%. (-31.28)

The bottom line was his nest egg was down -10.5% overall if we add back non-risk-based assets, which wasn’t too bad. However the risk-based assets such as equities were -23% down. As I said then, it is is these assets that must do the heavy lifting to return the retirement fund to supposed long-term trend to fund my friend’s retirement. This is something they are seriously failing to do, despite the bull market conditions.

For instance how come my friends property funds were down –49.39% vs. –14.9%, and his Aussie shares were down –26.57% vs. +1.7%, etc.?

These losses are too big a difference to make any sense to me. Why is my friend’s fund manager showing such big losses?

Vanguard Investments do not include fees and charges but this should not be that significant over a period of 4 years.

Anyway have a play wiht the Vanguard Investments Interactive Index Charts regardless of whether you are in Australia or not. You will gain a greater insigth into what might happen to your nest egg over 40 years. More importantly though imagine retiring at various points along the timeline and see the affect on your nest egg.

I’m mystified as to the difference between Vanguard Investments Percentage returns and my friend’s actual returns.

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