How risky are vanguard index funds?

Question

How risky are vanguard index funds?

Answer 1

John ... you are smart to ask about risk.  Vanguard Index funds are as risky as the market index a given index fund follows.  Example:  S&P 500 Index ... down considerably for this year.  IF you have a long time horizon and are willing to ignore this money for a few years, now is a compelling time to purchase this index.  Vanguard offers many index funds, and the low expenses (fees) keep most of the money made in your pocket.

Other than going to Vanguard.com, I suggest going to Morningstar.com for more information on Vanguard and index funds in general.  

Good Luck!

Uppity Wench

Answer 2

Not risky at all. They are a very responsible company and are recommended by the "...for Dummies" series.

Answer 3

Vanguard has a variety of mutual funds - some are more risky than others - you choose.

As a company, Vanguard is very good with their portfolio management.  I've used them for almost 20 years.  Never a problem.

I do move my money into different funds as I foresee certain trends.  Like now - the markets are down and are going to stay down for quite awhile - better to go to bond funds that provide a constant return with very little loss risk.

Answer 4

In general, they're safe. Vanguard is a large, solid company in no danger of collapse.

Index funds as a whole are safe. Stick with an index like the S&P, Dow Jones, etc. International indices can be better performers (or worse), depending on the country/region.

If you're just starting to invest, I'd suggest a broad US market index (S&P or Dow Jones) and maybe 10% into the European Index, EAFE.

Good luck!

Answer 5

not so risky as they were last October. When you buy any investment vehicle there is risk associated with the purchase.  As for Vanguard index funds,  they are less risky than the purchase of individual stocks or bonds.  And because of their relatively low expense ratios, they are less risky than many comparable offerings by other sources.