Investing doesn’t need to be complicated.
In fact, the most reliable way to compound your wealth is surprisingly simple: Spend time in the market owning shares in productive businesses that grow over time.
For the most part, Vanguard’s fund lineup reflects that philosophy. The firm built its reputation by offering straightforward, low-cost portfolios of stocks and bonds. They did not go in for complicated trading strategies.
And over the past few years, Vanguard further returned to its roots by shutting down two of its more complex funds: Managed Payout and Alternative Strategies.
Still, a few exceptions remain.
Today I want to take a closer look at two of Vanguard’s “alternative” funds—Market Neutral (VMNFX) and Commodity Strategy (VCMDX).
Neither one owns productive assets that compound wealth the way stocks do.