Vanguard 529 Index Fund Portfolio Performance for Dec 2012 and Calendar Year 2012
Posted on | January 15, 2013 | 2 Comments
Here is the performance of our Vanguard 529 portfolio for the month of December 2012. The contribution to the 529 this month actually happened on Jan. 2, 2013, so I am using that as the end of Dec 2012 for all portfolios. December was an excellent month, especially in regard to total returns, but also we received another distribution from Upromise of $84, which is impressive considering our monthly contribution is $76. Also, we were lucky enough to receive some gift money, which is always welcome. The benchmarks have been updated with the Upromise amount and the gift money. As a reminder, the gift money is used in the cost basis calculation, whereas the Upromise contribution is not (it is considered “free” money).
The allocation on 02-Jan-2013 was as follows:
| 02-Jan-2013 | |
|
Vanguard Total International Stock Index Portfolio
|
37.96% |
|
Vanguard Total Bond Market Index Portfolio
|
13.87% |
|
Vanguard High-Yield Bond Portfolio
|
15.64% |
|
Vanguard Small-Cap Index Portfolio
|
16.50% |
|
Vanguard Total Stock Market Portfolio
|
16.03% |
| Total | 100.00% |
Below is the performance of the funds last month (Nov. 30, 2012–Jan. 02, 2013). The portfolio as a whole was up +4.00%.
|
+6.10% |
|
+3.79% |
|
+5.85% |
|
-0.50% |
|
+1.54% |
Here is the performance of our two benchmarks for the month of December 2012:
- Growth Fund of America (CGFAX): +3.01% (without fees)
- Oppenheimer Blended Age-Based 0–6 Years Portfolio: +3.94%
Here is how the overall market performed between Nov. 30, 2012, and Jan. 02, 2013. The performances of the different indices were much more similar to each other (as opposed to the previous month, when each index had totally different returns).
|
+3.26% |
|
+2.97% |
|
+3.38% |
The Business Insider publishes charts of the day; this one caught my attention and explains some of the incredible equity performance for December 2012. Last month there was some serious money flowing in the stock mutual funds. Be sure to check the rest of the charts on that site as well.
Stock Mutual Fund Inflows
Even though our “year” ends in February, everyone (including myself) wants to know how the Vanguard Index Fund portfolio performed last year. I am not going to compare it with the market or any other fund, because all that matters is how our holdings did—not necessarily how well they did, but if they performed according to plan. Remember, we assumed 7% annual gain per year in order to meet our goal (without gift money or Upromise money). Just comparing the change in NAV (which includes dividends and capital gains for the trust) for each fund, the portfolio was up a very impressive +14.88%. Not too bad for a “moderate” portfolio—well ahead of our 7% per year goal.
| Jan. 2012 – Jan. 2013 | |
|
Vanguard Total International Stock Index Portfolio
|
16.67% |
|
Vanguard Total Bond Market Index Portfolio
|
3.85% |
|
Vanguard High-Yield Bond Portfolio
|
13.93% |
|
Vanguard Small-Cap Index Portfolio
|
19.55% |
|
Vanguard Total Stock Market Portfolio
|
17.42% |
| Total Portfolio | 14.88% |
Check out the performance page; our Vanguard portfolio and the Oppenheimer Blended Age-Based portfolio still are essentially tied, but our Vanguard portfolio is pulling ahead. Also, note that for the CGFAX fund, the performance in the chart is after the 5.25% front-end load. CGFAX is closing ground also. I think CGFAX may be hard to beat in a strong bull market, especially with our position in government bonds, which may be under pressure in the future. Here is a link to the performance page.
Comments
2 Responses to “Vanguard 529 Index Fund Portfolio Performance for Dec 2012 and Calendar Year 2012”
Leave a Reply
About
Follow along as I test three portfolios against each other—using my own money! You have read the investment blogs, now see these theories in action.
SUBSCRIBE TO MY FEED
Subscribe via Email
Search
Join U Promise for FREE
Over the three years, we have earned over $220 with Upromise. Never turn down free money! Please click on the above banner to join for free.
January 16th, 2013 @ 4:03 pm
Fidelity 529 Plan 2024…15.17% return in 2012
Fidelity 529 Plan 2027…15.96% return in 2012
January 17th, 2013 @ 7:15 am
Thank you Mr/Mrs. Offspring for taking the time to read and reply to my blog. Those return figures, are they for the index fund version or the actively managed fund version?