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Does *anybody* have *any* actively-managed mutual funds?

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  • Does *anybody* have *any* actively-managed mutual funds?

    Posting on and reading boards other than WCI and Bogleheads have reminded me that there are people whose investments aren't entirely in passive index funds with fees < 0.25%.  In fact, I've recently come across a few that absolutely swear by their non-index funds (and their AUM fees paid to quants).

    So I have to ask, does anyone hold anything here that doesn't start with a "V" or one of its clones?  And does anyone have concerns about indexers not holding through the next inevitable correction or that, contrary to the efficient market hypothesis, the current valuations don't actually represent the true state of the market?  And I'm sure some people probably have 401(k) plans full of American Funds or whatever and don't have low-cost options, so it'd be nice to see what people are holding.

    I'll start by admitting it, AA style.  Hi, I'm David A, and I own a couple active funds.  I actually do have a small amount (less than 10%) of my holdings in active funds (OPGIX, MGGPX, FISMX, PONDX).  I got a couple of them before I knew very much about what fees meant and why I prefer passive funds, and I got some others as part of an inherited IRA that I just didn't bother selling.

    Now I'm not advocating anyone buy these because that's not what is taught on this site which is fine, nor if I were an adviser would I advise my clients to buy them, and I'll probably sell them next time I rebalance out of their particular sectors...but I figure everyone's got a small amount of their portfolio that they put towards whatever, like peer-to-peer or precious metals or what-have-you, and I guess this is just my version of it.

  • #2
    A bunch of my clients do.  Typically older, wealthier clients.  Individual stocks and bonds as well.  Plenty of stuff with zero basis waiting for that step-up.   :lol:

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    • #3
      Yes. VWIUX.

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      • #4
        I have a some American Funds.  The basis is too low to sell them.  I donated some Growth Fund Of America  to start a DAF.  I do not reinvest any dividends or cap gains.  I own Growth Fund of America and Fundamental Investors.  I also own some Apple.  Since I hate paying taxes I do not sell these active funds.  They are paying out large capital gains now which I suspect is other people leaving American Funds.  I only invest in indexes now.

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        • #5
          I bought a target date fund from American Funds for my HSA, only because it was the most reasonable option I had available. The expense ratio is about 0.5-0.6% in any case, not particularly onerous.

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          • #6
            I am my own active manager, who I've been trying to make more passive every year (succesfully so at least in retirement accounts). I will hold lots of non vanguard and even primarily higher expense ratio index funds, some even with 1% cost! However, they have their place and used in the right way make the fee negligible.

            You can miss the point if you focus only on one aspect of cost, beta, drag, etc....none of those really matter if the returns or proper environment is there. I try not to talk about these things much either as its confusing to any beginners, requires that you pay more attention and like finance more than needed, and wholly unnecessary for success.

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            • #7




              Yes. VWIUX.
              Click to expand...


              I don't get it...?

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              • #8
                Inter Muni from vanguard. But it's actively managed.

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                • #9




                  Inter Muni from vanguard. But it’s actively managed.
                  Click to expand...


                  Hmm. I hadn't realized that.  I figured with a turnover ratio of 9%, an expense ratio of 0.09%, and r² 99%, that it was just as passive as the rest of Vanguard's index funds.  But I guess technically it is active, even if they're actively deciding to be passive, I suppose.  But I guess that's the difference between it and VTEAX (whose turnover is 8%).  I learned something today.

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                  • #10
                    I'm glad. Yea I've never held the index Muni version. But I'm also ok with the risk and cost.

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                    • #11
                      Do you consider DFA funds actively managed? AQR? Vanguard Tax Managed Balanced?

                      If the answer is no to all of the above, then we have about 10% of our investments in active funds. If the answer is yes to all of the above, we probably have 75% of our investments in actively managed funds.

                      Some of our actively managed funds include Dodge and Cox Balanced, Vanguard Primecap Core, T Rowe Price Capital Appreciation, and T Rowe Price Media and Telecomm.

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                      • #12
                        I have 7 figures in actively managed stocks. I subscribe to zaphod philosophy but not as well as he does it.

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                        • #13
                          For now just VWUIX & VMATX in accounts I control.

                          My group cash balance plan holds a few actively managed stinkers mixed in but the overall ER is a tolerable 0.3%.

                          I am strongly considering the new active VG factor ETFs in Roth space when they become available. Anyone else getting in on these? All are intuitively attractive to me except the low volatility ETF. Goes against KISS though, so maybe I’ll just start with the Vanguard multifactor fund.

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                          • #14
                            No active funds. Three Vanguard index fund portfolio.

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                            • #15
                              I like a core-satellite approach. 70-75% passive and active managers in international, emerging markets, small cap and MLP’s.

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