Investment Portfolio Research: Lazy Portfolios: Weekly Performance Update of The Individual Funds (2/20/09)

Tuesday, February 24, 2009

Lazy Portfolios: Weekly Performance Update of The Individual Funds (2/20/09)

Following last week's heavy loss (with the stock funds down an average of -5%), this is the 2nd week that the entire stock market lost grand, with both the US and international stock markets lost an average of another 6% each. The Vanguard Total Stock Mkt Idx (VTSMX) and the Vanguard 500 Index (VFINX) are both down more than 14% YTD. The Vanguard Total Intl Stock Index (VGTSX) is down more than 17% YTD. The biggest loser of the stock funds is the REIT Index (VGSIX), down about 29%, nearly 1/3 of its value, following a -37% return last year.

The bond funds still hold up fine, especially the Vanguard High-Yield Corporate fund (VWEHX) , up > 5% YTD. Although up ~ 1% last week, the Vanguard Long-Term U.S. Treasury (VUSTX) is still the big loser among the bond funds, down -7.5% YTD.

The average YTD returns for both markets are now down -17%, comparable to a whole year return for a bear market, and we are just two months into this year. The questions are: how long this bear market will drag on? Can the lazy portfolios stand another bad bear market year? Both are the questions no one can answer now, only time can tell.

(1) The YTD and Weekly change table of the individual Vanguard funds in the lazy portfolios (2/20/2009). (Note: data from google finance)