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Particularly in times of turmoil and economic uncertainty, you might suppose that a fund that promises high returns must have to take very high risk. You’d be right... but there is a surprising exception to this rule... and it is health care stocks.
Health care stocks have proven to be an excellent prescription in uncertain markets. They march to the beat of a different drummer. This makes perfect sense if you think about it: You don’t stop taking your pills if the economy is in a slump...any more than you see your doctor more during a boom.
So: Risk is low with health care stocks. Now let’s look at rewards. I think the old saying, “Demographics is destiny,” might have been coined to apply to health care stocks.
You see, no matter what terrible thing happens today, tomorrow over 1,000 Americans will wake up to their 50th birthday. Millions more will wake up with high cholesterol, high blood pressure, and all the aches and pains that seem to accumulate rapidly from our 50th birthday onward.
From being just 5% of the population 10 years ago, fifty-plusers are soon to account for 20% of the population.
And prescription drug use QUADRUPLES once you are over 50. That’s a lot of little blue and white pills!
Indeed, 82% of boomers put illness as their #1 fear—ahead of financial uncertainty.
That’s why health care is an important political hot potato. A rush of new drug approvals from the FDA, new medical devices coming on the market, and new scientific breakthroughs that focus on lowering costs of treatment...all conspire to make 2008 a health care “gold rush.”
And, in the catbird seat, the most seasoned veteran health care stock picker in the land, Ed Owens, is running Vanguard’s Health Care Fund.
Owens knows that risks and rewards vary hugely among drug, hospital, biotech, diagnostic and other health care companies, and he chooses very carefully.
A lot of the genome-based stuff is too risky for his blood. Too many of the HMOs and hospitals aren’t going up soon.
But medical-device companies and drugs that target boomer ailments like diabetes, arthritis and high cholesterol look like solid bets. Believe me, as great as this area is, few of us can sort through the 15 different subsectors to find the gems. And you don’t have to! Ed Owens is brilliant at it. Very focused, very value-driven—and very results-oriented.
Consider: Over the last 10 years, his return is 16.4% a year—an unrivaled record that trounces the 9.7% return of the S&P Health Sector Index.
There’s just one catch: Vanguard Health Care closed its doors to new investors in 2005. So if you’ve already got money invested in Health Care, keep adding to it. But if you are a new investor, I’ll share my exclusive tips on how to get into closed funds like Health Care. Plus, I’ll name my substitute recommendation for this stellar fund. You get it all when you accept your risk-free trial to The Independent Adviser for Vanguard Investors.
He’s been doing it for 17 years. And he’s doing it again this year. But this year, Dan wants you along for the ride.
Dan Wiener has been investigating mutual funds ever since the days when he was a financial journalist. For the last 17 years, he’s focused only on Vanguard.
Dan founded the Fund Family Shareholder Association (FFSA) and edits the association’s private members-only publication, The Independent Adviser for Vanguard Investors.
In his position as Editor, he is a four-time recipient of the Newsletter Publishers Foundation’s Editorial Excellence Award and has been mentioned in Barron’s, Bloomberg Personal and the Wall Street Journal just to name a few publications. Formerly, he was a financial columnist for U.S. News and World Report, and Fortune magazine.
Dan is entirely independent of The Vanguard Group, Inc. His only loyalty is to his readers, investors wise enough to secure their futures with Vanguard.
Dan’s two decades of work has made many a Vanguard investor richer than expected. Much richer! The evidence shows that Dan’s advice makes his readers 144% richer than the average Vanguard investor who invests with Vanguard on his own.
This is not a snapshot of selected “good” years. Dan beats the market, Vanguard and your own profit expectations year-in and year-out.
He achieves this by asking the tough questions at Vanguard—and publishing very, very hard-to-find information in his advisory, The Independent Adviser for Vanguard Investors, a monthly newsletter that keeps abreast of recent developments at Vanguard.
He doesn’t want you to miss out a moment longer.
The Independent Adviser for Vanguard Investors provides independent investment advice on the Vanguard family of mutual funds.
Editor Dan Wiener, a long-time advocate of consumer investors, is dedicated to assisting Vanguard shareholders in achieving higher returns, less risk and more confidence in meeting their personal financial objectives.
The service gives members strictly independent and unbiased in-depth information on all of Vanguard’s stock and bond fund offerings, as well as their international funds, variable annuities and money markets.
Included in your service is a 12-page monthly newsletter with specific “buy,” “hold” and “sell” recommendations and performance returns for each of Vanguard’s funds.
The service also offers four different model portfolio plans (for conservative, moderate and aggressive investors) using only the finest Vanguard funds.
Dan also keeps you up-to-date on all Vanguard news events and changes in fund management. You will have access to fund manager interviews, fund distribution information, market updates, tax efficiency advice and many other tools to make you’re investing easier and more profitable.
All membership subscriptions entitle members to automatic enrollment in the Fund Family Shareholder Association at no additional charge. Members will also receive access to FFSA’s 24-hour Independent Adviser hotline.