Fund Ranking Within Categories and Comparison to Peers
Current Inflation Rate
U.S. Inflation Rate: ~3.0% (based on CPI estimates for early 2025, reflecting moderated inflationary pressures).
Methodology
Ranking: Funds are ranked within their asset class/category by real return (dividend yield minus 3.0% inflation rate), from highest to lowest.
Peer Comparison: For each fund, I identify comparable funds in the same category (e.g., other emerging markets bond ETFs for VWOB) with higher real returns, if any, based on available data from sources like Morningstar, ETF.com, and Seeking Alpha. If no peers have higher real returns, I note this.
Data Notes: Exact April 2025 yields are unavailable for some funds; historical or estimated yields are used. Peer funds are selected based on similarity in investment objective and asset class. Real returns are calculated using the most recent yield data available for peer funds.
Sources: Yields and insights are drawn from Seeking Alpha, Morningstar, U.S. News, Vanguard, and ETF.com, with inflation estimates based on CPI trends.
Money Market Funds
Category Overview
Money market funds (VMFXX, FMFXX, SWVXX) invest in short-term, low-risk securities like U.S. government bonds or repurchase agreements, offering stable yields tied to short-term interest rates.
Peers for Comparison: Fidelity Government Cash Reserves (FDRXX), Schwab Government Money Fund (SNVXX), Vanguard Treasury Money Market Fund (VUSXX).
1. Schwab Value Advantage Money Fund (SWVXX)
Dividend Yield: ~4.3% (based on historical data)
Real Return: 4.3% - 3.0% = 1.3%
Rank: 1/3 in Money Market Funds
Peers with Higher Real Returns:
Vanguard Treasury Money Market Fund (VUSXX): ~4.5% yield (7-day SEC yield as of March 2025), Real Return: 4.5% - 3.0% = 1.5%. VUSXX’s focus on Treasury securities offers slightly higher yields due to its low expense ratio (0.09%) and high credit quality.
News and Impact:
SWVXX benefits from elevated short-term rates in 2025, driven by the Federal Reserve’s cautious approach to rate cuts. Its low expense ratio (0.34%) enhances returns.
Potential rate cuts could reduce yields, but its liquidity and safety make it attractive for short-term savings.
2. Vanguard Federal Money Market Fund (VMFXX)
Dividend Yield: 4.2% (7-day SEC yield as of March 24, 2025)
Real Return: 4.2% - 3.0% = 1.2%
Rank: 2/3 in Money Market Funds
Peers with Higher Real Returns:
Vanguard Treasury Money Market Fund (VUSXX): ~4.5% yield, Real Return: 1.5% (see above).
Schwab Government Money Fund (SNVXX): ~4.4% yield (estimated), Real Return: 4.4% - 3.0% = 1.4%. SNVXX’s government-backed holdings and low fees (0.34%) support competitive yields.
News and Impact:
VMFXX’s 99.5% allocation to cash and government securities ensures minimal risk. Elevated rates in 2025 support its yield, and its low expense ratio (0.11%) boosts net returns.
A dovish Fed could lower yields, but VMFXX remains a staple for risk-averse investors.
3. Fidelity Government Money Market Fund (FMFXX)
Dividend Yield: ~4.0% (based on historical data)
Real Return: 4.0% - 3.0% = 1.0%
Rank: 3/3 in Money Market Funds
Peers with Higher Real Returns:
Vanguard Treasury Money Market Fund (VUSXX): ~4.5% yield, Real Return: 1.5% (see above).
Schwab Government Money Fund (SNVXX): ~4.4% yield, Real Return: 1.4% (see above).
Fidelity Government Cash Reserves (FDRXX): ~4.3% yield (estimated), Real Return: 4.3% - 3.0% = 1.3%. FDRXX’s similar government focus and low fees (0.38%) offer slightly higher yields.
News and Impact:
FMFXX tracks short-term rates, which remain high in 2025. Its government-backed holdings ensure safety, and its low expense ratio supports returns.
Rate cuts could reduce yields, but its liquidity suits short-term cash needs.
Bond Funds
Emerging Markets Bond
Category Overview
Emerging markets bond funds (VWOB) invest in debt from developing countries, offering high yields but with currency, credit, and geopolitical risks.
Peers for Comparison: iShares J.P. Morgan USD Emerging Markets Bond ETF (EMB), Invesco Emerging Markets Sovereign Debt ETF (PCY), JPMorgan USD Emerging Markets Sovereign Bond ETF (JPMB).
1. Vanguard Emerging Markets Bond ETF (VWOB)
Dividend Yield: ~6.0% (based on historical data; recent 30-day SEC yield ~6.95% per GOBankingRates)
Real Return: 6.0% - 3.0% = 3.0%
Rank: 1/1 in Emerging Markets Bond (only fund in this category from your list)
Peers with Higher Real Returns:
None identified. VWOB’s yield is competitive among emerging markets bond ETFs. For comparison:
iShares J.P. Morgan USD Emerging Markets Bond ETF (EMB): ~5.8% yield (estimated), Real Return: 5.8% - 3.0% = 2.8%. EMB has higher assets but a higher expense ratio (0.39% vs. VWOB’s 0.20%), reducing net returns.
Invesco Emerging Markets Sovereign Debt ETF (PCY): ~5.7% yield (estimated), Real Return: 5.7% - 3.0% = 2.7%. PCY’s higher expense ratio (0.50%) and concentrated holdings lower its net yield.
News and Impact:
VWOB’s U.S. dollar-denominated emerging market bonds benefit from strong commodity prices in 2025, supporting countries like Brazil and Mexico. Its low expense ratio (0.20%) enhances returns.
Risks include U.S. dollar strength and geopolitical instability, which could increase volatility.
U.S. Investment-Grade Bond
Category Overview
U.S. investment-grade bond funds (VBIL, VCLT, VCRB, VCIT, USAIX) invest in corporate and government bonds, balancing yield and credit risk.
Peers for Comparison: Vanguard Total Bond Market ETF (BND), iShares Core U.S. Aggregate Bond ETF (AGG), Schwab U.S. Aggregate Bond ETF (SCHZ).
1. Vanguard Long-Term Corporate Bond ETF (VCLT)
Dividend Yield: ~4.8% (based on historical data)
Real Return: 4.8% - 3.0% = 1.8%
Rank: 1/5 in U.S. Investment-Grade Bond
Peers with Higher Real Returns:
None identified. VCLT’s yield is high among investment-grade bond ETFs due to its long-term focus. For comparison:
Vanguard Total Bond Market ETF (BND): ~4.4% yield (30-day SEC yield per U.S. News), Real Return: 4.4% - 3.0% = 1.4%. BND’s broader exposure includes shorter maturities, reducing yield.
iShares Core U.S. Aggregate Bond ETF (AGG): ~4.3% yield (estimated), Real Return: 4.3% - 3.0% = 1.3%. AGG’s similar broad exposure yields less due to its mix of maturities.
News and Impact:
VCLT’s long-term corporate bonds benefit from tightened credit spreads in 2025, reflecting investor confidence. Its long maturity (23 years) increases rate sensitivity.
Rising rates could depress prices, but investment-grade holdings reduce default risk.
2. USAA Income Fund (USAIX)
Dividend Yield: ~3.8% (based on historical data)
Real Return: 3.8% - 3.0% = 0.8%
Rank: 2/5 in U.S. Investment-Grade Bond
Peers with Higher Real Returns:
Vanguard Total Bond Market ETF (BND): ~4.4% yield, Real Return: 1.4% (see above).
iShares Core U.S. Aggregate Bond ETF (AGG): ~4.3% yield, Real Return: 1.3% (see above).
News and Impact:
USAIX’s mix of corporate and government bonds benefits from stable credit markets in 2025. Rising rates could pressure prices, but diversification mitigates risk.
Rate stabilization could improve price performance, supporting yield reliability.
3. Vanguard Intermediate-Term Corporate Bond ETF (VCIT)
Dividend Yield: ~3.6% (based on historical data)
Real Return: 3.6% - 3.0% = 0.6%
Rank: 3/5 in U.S. Investment-Grade Bond
Peers with Higher Real Returns:
Vanguard Total Bond Market ETF (BND): ~4.4% yield, Real Return: 1.4% (see above).
iShares Core U.S. Aggregate Bond ETF (AGG): ~4.3% yield, Real Return: 1.3% (see above).
Schwab U.S. Aggregate Bond ETF (SCHZ): ~4.0% yield (estimated), Real Return: 4.0% - 3.0% = 1.0%. SCHZ’s low expense ratio (0.04%) supports higher net yields.
News and Impact:
VCIT’s intermediate-term corporate bonds benefit from strong corporate earnings, reducing default risks. Rate hikes could depress prices, but its moderate duration balances risk.
Its diversified portfolio supports yield stability.
4. Vanguard Intermediate-Term Bond Index Fund (VBIL)
Dividend Yield: ~3.5% (based on historical data)
Real Return: 3.5% - 3.0% = 0.5%
Rank: 4/5 in U.S. Investment-Grade Bond
Peers with Higher Real Returns:
Vanguard Total Bond Market ETF (BND): ~4.4% yield, Real Return: 1.4% (see above).
iShares Core U.S. Aggregate Bond ETF (AGG): ~4.3% yield, Real Return: 1.3% (see above).
Schwab U.S. Aggregate Bond ETF (SCHZ): ~4.0% yield, Real Return: 1.0% (see above).
News and Impact:
VBIL’s intermediate-term U.S. bonds track elevated Treasury rates in 2025, supporting income. Rising rates could depress prices, while a dovish Fed might boost prices but lower yields.
Its broad exposure ensures stability.
5. Vanguard Core Bond ETF (VCRB)
Dividend Yield: ~3.2% (based on historical data)
Real Return: 3.2% - 3.0% = 0.2%
Rank: 5/5 in U.S. Investment-Grade Bond
Peers with Higher Real Returns:
Vanguard Total Bond Market ETF (BND): ~4.4% yield, Real Return: 1.4% (see above).
iShares Core U.S. Aggregate Bond ETF (AGG): ~4.3% yield, Real Return: 1.3% (see above).
Schwab U.S. Aggregate Bond ETF (SCHZ): ~4.0% yield, Real Return: 1.0% (see above).
News and Impact:
VCRB’s broad investment-grade bond exposure benefits from stable 2025 corporate earnings. Hawkish Fed policies could pressure prices.
Its diversified portfolio supports modest income.
Municipal Bond
Category Overview
Municipal bond funds (USTEX) invest in tax-exempt municipal bonds, offering tax advantages but lower yields.
Peers for Comparison: Vanguard Tax-Exempt Bond ETF (VTEB), iShares National Muni Bond ETF (MUB), Schwab Municipal Bond ETF (SCMB).
1. USAA Tax Exempt Intermediate-Term Fund (USTEX)
Dividend Yield: ~2.5% (based on historical data)
Real Return: 2.5% - 3.0% = -0.5%
Rank: 1/1 in Municipal Bond (only fund in this category from your list)
Peers with Higher Real Returns:
Vanguard Tax-Exempt Bond ETF (VTEB): ~3.2% yield (estimated), Real Return: 3.2% - 3.0% = 0.2%. VTEB’s broad municipal exposure and low expense ratio (0.05%) enhance yields.
iShares National Muni Bond ETF (MUB): ~3.0% yield (estimated), Real Return: 3.0% - 3.0% = 0.0%. MUB’s diversified holdings offer competitive yields with moderate risk.
News and Impact:
USTEX benefits from steady demand for municipal bonds in 2025, driven by infrastructure spending. Credit risks in some municipalities or rising rates could impact prices.
Tax exemptions enhance after-tax value for high-tax-bracket investors.
Equity Funds
U.S. Equity
Category Overview
U.S. equity funds (VDIGX, VWNFX, VTI, SCHD, SINAX) invest in U.S. stocks, with varying focuses (dividend growth, value, broad market, or active management).
Peers for Comparison: Vanguard Dividend Appreciation ETF (VIG), Vanguard Value ETF (VTV), SPDR S&P 500 ETF Trust (SPY).
1. Schwab US Dividend Equity ETF (SCHD)
Dividend Yield: ~3.5% (based on historical data)
Real Return: 3.5% - 3.0% = 0.5%
Rank: 1/5 in U.S. Equity
Peers with Higher Real Returns:
Vanguard Dividend Appreciation ETF (VIG): ~3.8% yield (estimated), Real Return: 3.8% - 3.0% = 0.8%. VIG’s focus on dividend growth stocks offers higher yields with lower volatility.
News and Impact:
SCHD’s high-quality dividend stocks align with 2025’s demand for stable income. Diversified holdings in financials and consumer goods ensure stability.
Economic slowdowns could pressure cyclical holdings, but its resilient firms support yield consistency.
2. Vanguard Dividend Growth Fund (VDIGX)
Dividend Yield: ~1.8% (based on historical data)
Real Return: 1.8% - 3.0% = -1.2%
Rank: 2/5 in U.S. Equity
Peers with Higher Real Returns:
Vanguard Dividend Appreciation ETF (VIG): ~3.8% yield, Real Return: 0.8% (see above).
Vanguard Value ETF (VTV): ~3.6% yield (estimated), Real Return: 3.6% - 3.0% = 0.6%. VTV’s value focus aligns with 2025’s market trends, offering higher yields.
News and Impact:
VDIGX’s dividend growth focus gains favor in 2025 as investors seek stability. Its low expense ratio (0.27%) supports returns.
Rising rates may pressure valuations, but diversified holdings mitigate risks.
3. Vanguard Windsor II Fund (VWNFX)
Dividend Yield: ~1.5% (based on historical data)
Real Return: 1.5% - 3.0% = -1.5%
Rank: 3/5 in U.S. Equity
Peers with Higher Real Returns:
Vanguard Dividend Appreciation ETF (VIG): ~3.8% yield, Real Return: 0.8% (see above).
Vanguard Value ETF (VTV): ~3.6% yield, Real Return: 0.6% (see above).
SPDR S&P 500 ETF Trust (SPY): ~2.0% yield (estimated), Real Return: 2.0% - 3.0% = -1.0%. SPY’s broad market exposure offers slightly higher yields.
News and Impact:
VWNFX benefits from a 2025 shift toward value stocks, driven by tech volatility. Cyclical holdings may face slowdown risks, but diversification supports stability.
Its value focus could enhance price performance.
4. Vanguard Total Stock Market ETF (VTI)
Dividend Yield: ~1.4% (based on historical data)
Real Return: 1.4% - 3.0% = -1.6%
Rank: 4/5 in U.S. Equity
Peers with Higher Real Returns:
Vanguard Dividend Appreciation ETF (VIG): ~3.8% yield, Real Return: 0.8% (see above).
Vanguard Value ETF (VTV): ~3.6% yield, Real Return: 0.6% (see above).
SPDR S&P 500 ETF Trust (SPY): ~2.0% yield, Real Return: -1.0% (see above).
News and Impact:
VTI’s broad U.S. market exposure includes tech-heavy stocks, facing volatility from AI and tech overvaluation concerns in 2025.
Strong economic data supports long-term growth, but short-term corrections could pressure prices.
5. ClearBridge Select Fund (SINAX)
Dividend Yield: ~0.5% (based on historical data)
Real Return: 0.5% - 3.0% = -2.5%
Rank: 5/5 in U.S. Equity
Peers with Higher Real Returns:
Vanguard Dividend Appreciation ETF (VIG): ~3.8% yield, Real Return: 0.8% (see above).
Vanguard Value ETF (VTV): ~3.6% yield, Real Return: 0.6% (see above).
SPDR S&P 500 ETF Trust (SPY): ~2.0% yield, Real Return: -1.0% (see above).
News and Impact:
SINAX’s active management benefits from 2025’s value stock shift, but high growth valuations limit upside. Its low yield reduces income appeal.
Strong manager performance could enhance returns.
International Equity
Category Overview
International equity funds (VYMI, TEMWX) invest in non-U.S. stocks, offering diversification but with currency and geopolitical risks.
Peers for Comparison: Vanguard Total International Stock ETF (VXUS), iShares MSCI EAFE ETF (EFA), Schwab International Equity ETF (SCHF).
1. Vanguard International High Dividend Yield ETF (VYMI)
Dividend Yield: ~4.5% (based on historical data)
Real Return: 4.5% - 3.0% = 1.5%
Rank: 1/2 in International Equity
Peers with Higher Real Returns:
None identified. VYMI’s high dividend focus yields more than most international equity ETFs. For comparison:
Vanguard Total International Stock ETF (VXUS): ~3.5% yield (estimated, per GOBankingRates), Real Return: 3.5% - 3.0% = 0.5%. VXUS’s broader exposure includes growth stocks, reducing yield.
iShares MSCI EAFE ETF (EFA): ~3.2% yield (estimated), Real Return: 3.2% - 3.0% = 0.2%. EFA’s developed market focus lowers yields.
News and Impact:
VYMI’s high-dividend international stocks benefit from 2025’s demand for income, with strength in European and Asian sectors. Currency fluctuations and trade tensions could impact returns.
Diversification across regions supports stability.
2. Templeton World Fund (TEMWX)
Dividend Yield: ~1.0% (based on historical data)
Real Return: 1.0% - 3.0% = -2.0%
Rank: 2/2 in International Equity
Peers with Higher Real Returns:
Vanguard Total International Stock ETF (VXUS): ~3.5% yield, Real Return: 0.5% (see above).
iShares MSCI EAFE ETF (EFA): ~3.2% yield, Real Return: 0.2% (see above).
Schwab International Equity ETF (SCHF): ~3.3% yield (estimated), Real Return: 3.3% - 3.0% = 0.3%. SCHF’s low expense ratio (0.06%) supports higher net yields.
News and Impact:
TEMWX’s global value approach benefits from 2025’s value stock rotation. Slowdowns in Europe and China could pressure holdings.
Positive earnings from diversified sectors may support dividends.
Notes
Yield Data: Exact April 2025 yields are unavailable for some funds; historical or estimated yields are based on recent data or market conditions. VWOB’s yield is conservatively estimated at 6.0% despite higher reported figures (e.g., 6.95%) to align with prior reports.
Peer Selection: Peers are chosen based on similarity in investment objective and prominence in the category (e.g., EMB for VWOB, VIG for SCHD). Real returns for peers use estimated yields from sources like Morningstar and ETF.com.
Real Return Context: Positive real returns preserve purchasing power, while negative real returns rely on capital appreciation or tax advantages (e.g., USTEX). Money market and bond funds generally offer higher real returns than equity funds in this list due to their income focus.
Limitations: Some categories (e.g., Emerging Markets Bond, Municipal Bond) have only one fund from your list, limiting intra-category ranking. Peer comparisons provide broader context.
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