Q: What do you think of Vanguard’s Utility Index Fund as part of a retired person’s portfolio? I’m thinking of perhaps 7% of my investment. Other funds are Index 500, Total Bond Index and Health Care Fund – all Vanguard funds.
A: We love the idea of adding the utility sector to your current holdings. The Vanguard Utility Index should provide some stable income as well as inflation protection in the future. You will be fine as long as you keep it under 15% of your total holdings. Thanks for your question!