Personal Finance and Investing

Well, what difference would it make if it was down as long as you didn't sell? I'm sure you know that the only true loss is a realized loss, and that happens only if you redeem the shares.


If your description of the fund is accurate to the one you purchased, then it is likely ticker "VTWNX" , Vanguard Target Retirement 2020 Fund, Investor Shares

That fund was down 3.76% last year, but averaged almost 8% total return over the last 3 years!

That fund is a "Fund of Funds" meaning that instead of individual positions, like shares of 3M along with a few dozen others for instance, the largest portion of the funds portfolio consists of other Vanguard Mutual Funds. The portfolio of issues contained inside the funds held give this fund roughly a 50/50 split between bonds and equities.

I hate to say this, but I think you made a significant mistake (or at least a $1,000 one) by redeeming those shares so quickly. The fund has done OK for what it is since its inception, and it is sort of contrary to the point of a mutual fund to sell out of such a position after a mere 30 days.

In case you have not seen it, I put up a tutorial post a few years ago regarding Mutual Funds. It may be something you would find interesting.