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Subject:  Re: GNMA Talk from Vanguard Date:  3/18/2006  9:47 AM
Author:  AcmeFool Number:  15817 of 36328

So, is this article suggesting that the Vanguard GNMA fund is a good, safe investment? Because I have owned it for several years, and it is in the hole. (I have not reinvested dividends.)

It is not in the hole. The fund is up on a dividend-adjusted basis for pretty much any holding period.

By removing the dividends, you are decreasing your investment over time...since the fund pays significant dividends and will only rarely see significant share appreciation, your total holdings are likely to decrease over time. Thia is not the same as being in the hole, however, since you have had the spun-off funds to work with all along.

I have been thinking about selling at least half of it, but maybe this is not the right time. Opinions?

It would require much more information than you have provided for anyone to give you reasonable advice. And even then, the advice might be worth less than you paid for it...

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