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Old 18-07-2020, 03:00 PM   #2503
BBCWatcher
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Join Date: Jun 2010
Posts: 12,994
Total Return “Porn” Through June 30, 2020

For some reason some people like to see my personal rate of return data. OK, here are the latest conveniently accessible figures through the end of June, 2020, across the three investment firms that hold the bulk of my household's investable wealth. My last update was through December, 2019, so this update is after much of the COVID-19 dip, with markets still below their peaks. These figures represent gross annualized total account returns ("money returns") in nominal U.S. dollars. (The net outcome is hard to predict. In particular, some capital gains and dividend taxes have already been paid along the way, but some more capital gains tax will likely be due upon future sale.) Gross dividends have been almost entirely reinvested in full since the accounts were opened. (I say "almost" entirely reinvested because there's one very small, strange exception at Schwab. U.S. persons are not ordinarily subject to withholding tax, and I settle dividend taxes out of cash. Gross dividend reinvesting is a slight advantage, but capital gains tax is a disadvantage. Earlier I said after tax dividend reinvesting, but that’s incorrect except with respect to a little foreign dividend tax paid at the fund level.) Only Vanguard provides an easy way to look up a 10 year number while the others report out to at least 5 years.

Vanguard

10 Year: 7.4%
5 Year: 5.5%
3 Year: 4.7%
1 Year: 1.6%

Fidelity

5 Year: 6.44%
3 Year: 6.07%
1 Year: 3.19%

Caveat: About 14% of my Fidelity holdings are still not reflected in the above figures. This portion only came into existence more recently, and due to an apparent quirk in Fidelity's online system it won't show up in the above figures for some time to come. If included I believe the one year figure especially would be a little lower.

Schwab

Inception: 11.57%
5 Year: 12.01%
3 Year: 9.58%
1 Year: 5.29%

Vanguard holds the biggest share of investable assets, followed by Fidelity, and then Schwab. Savings continue to flow every month into Fidelity and Vanguard.

I have absolutely no complaints. None of this stuff is "rocket science." It's just the natural outcome of regular, dogged, monthly savings for many years into a very small number of low cost, well diversified funds. I have no plans to make any changes except to review my monthly savings flow periodically, hopefully for possible raises. If I’ve engineered these holdings correctly— and I think I have — everything else happens automatically, including rebalancing, dividend reinvestment, and the pre-retirement gradual adjustments from stocks to bonds to a certain extent.
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