Pop quiz: Name Vanguard’s best-performing fund since the U.S. and Israel attacked Iran on February 28?
With oil rising from around $65 per barrel to over $100, you would be justified in thinking it was Energy ETF (VDE). But the energy sector is up 8.2% over the past two months—only somehwat better than Total Stock Market ETF’s (VTI) 4.9% return.
Or maybe your mind jumped to Commodity Strategy (VCMDX). Closer—the commodity fund was Vanguard’s second-best performer, up 11.2% since the end of February.
The correct answer? Information Technology ETF (VGT), with a 13.7% gain.
While technology stocks fell 3.9% in March, the sector roared back in April, surging 18.3%—its best monthly return since its 2004 inception. As I showed you on Wednesday, you have to rewind to the late-1990s tech bubble to match April’s return.
Tech giants helped fuel 500 Index's (VFIAX) 10.5% return in April. But with only eight Vanguard funds in the red, investors earned solid absolute returns across the board.
SmallCap Index (VSMAX) gained 8.6%. Total International Stock Index (VTIAX) returned 8.2%. Real Estate Index (VGSLX) was up 8.6%. Those returns fall short of 500 Index’s pace, but they're nothing to scoff at.
On the safer side, Total Bond Market Index (VBTLX) gained 0.1% and Federal Money Market (VMFXX) returned 0.3%—modest, but they did their job.
Put it together, and the average Vanguard investor earned 7.2% in April. Despite "everything" going on, the average investor's portfolio (based on our AVII) is at an all-time high.
What's an investor to do after a big month like April?