Skip to Content
Fund Times

Are These Vanguard Funds Too Hot to Handle?

Plus, T. Rowe's new fixed-income chief will have to think globally, and more.

Mentioned: , , , , , , , , ,

Earlier this week, Vanguard, the more than $1 trillion asset manager, warned investors not to expect the strong domestic and international returns this year to continue forever. The MSCI US Broad Market Index is up 21.6% for 2009 through the end of September, while the MSCI EAFE Index is up an impressive 29%. Both are a far cry from the roughly 10% annualized returns these markets have traditionally returned.

This isn't the first time the firm has issues such a warning; it has issued similar notes when things were running hot in other asset classes, such as REITs, emerging markets, and precious metals.

To view this article, become a Morningstar Basic member.

Register for Free

Ryan Leggio has a position in the following securities mentioned above: HSTRX. Find out about Morningstar’s editorial policies.