Vanguard Variable Annuity
Investment Model Portfolios
Investment Model Portfolios
Vanguard Variable Annuity provides investment options in VVA (Vanguard Variable Annuity) funds. Vanguard has an excessive trading policy which is different from most of brokerages: it imposes 60 days waiting period before one could repurchase a fund again afer selling the fund. IMPORTANT NOTE: because MyPlanIQ does not have VVA fund data, all of these funds are substituted by their Vanguard mutual fund equivalents. We believe the Vanguard mutual funds should closely track their corresponding VVA funds.
The following is the excerpt on the Vanguard Variable Annuity exchange policy from its prospectus. Based on the description, MyPlanIQ has yet to work out a way to handle so caled 'round trip' limitation. We will fix this shortly.
L I M I T A T I O N S ON Exchanges
Because excessive exchanges can disrupt management of the Fund and increase the Fund’s costs for
all Contract Owners, the Fund limits exchanges as follows:
■ You may make no more than two substantive round trips through a Portfolio (not including the
Money Market Portfolio) during any 12-month period.
■ The Fund and the Company may refuse an exchange at any time, for any reason.
■ The Company may revoke a Contract Owner’s exchange privilege at any time, for any reason.
A round trip is a redemption from a Portfolio followed by a purchase back into the Portfolio. Also, round
trip covers transactions accomplished by any combination of methods, including transactions conducted
by check, wire, or exchange to or from another Vanguard fund. “Substantive” means a dollar amount
that Vanguard determines, in its sole discretion, could adversely affect the management of the Fund.
Plan investment options
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The following is a moderate-risk model portfolio constructed from the investment options of Vanguard Variable Annuity.
This portfolio is proactively monitored and rebalanced on a monthly basis when needed, ensuring it remains in line with its target allocation. We offer customization features, allowing subscribers to tailor the portfolio to align with their own risk tolerance and return expectations by changing risk profile parameter.
Our model portfolio is rooted in the MyPlanIQ Asset Allocation Composite (AAC) strategy. This dynamic (tactical) asset allocation and quantitative fund selection algorithm prioritize risk management by dynamically adjusting stock allocations based on prevailing asset momentum. Extensive research has shown that this momentum-based tactical approach can potentially reduce temporary losses while maintaining or outperforming traditional buy-and-hold strategies.
Both historical back test and real-time portfolio return and risk data are shown in the table on this page. These metrics are compared with stock and moderate allocation index funds.
Furthermore, subscribers have the option to explore alternative strategies such as Strategic Asset Allocation Optimal (SAA) and Tactical Asset Allocation (TAA) to further customize their model portfolio. See our investment methodology for more details on the investment strategies
Puzzled on what to invest?
- We ask a few questions to decide your personal return and risk expectations
- We build a custom portfolio for your plan (401(k), 403(b), 529 ...) or for a brokerage account
- We monitor and send timely rebalance emails on what investment funds to buy and sell