R8| Monday, October 7, 2019 THE WALL STREET JOURNAL.
JOURNAL REPORT | INVESTING IN FUNDS & ETFS
Stock & Bond Benchmark IndexesAll total return unless noted
Perfomance (%)
Investment objective September 3rd-qtr 1-yr 5-yr*
Large-capstocks
DJIA 2.1 1.8 4.2 12.3
S&P 500 1.9 1.7 4.3 10.8
Midcapstocks
S&P MidCap 400 3.1 –0.1 –2.5 8.9
Small-capstocks
Russell 2000 2.1 –2.4 –8.9 8.2
Broadstockmarket
DJ U.S. Total Stock Market 1.7 1.1 2.8 10.4
Russell 3000 1.8 1.2 2.9 10.4Performance (%)
Investment objective September 3rd-qtr 1-yr 5-yr*
Stockindexes
DJ U.S. TSM Growth 0.2 0.7 2.1 12.0
DJ U.S. TSM Value 3.7 1.7 3.8 8.8
Taxablebonds
Barclays Agg. Bond –0.5 2.3 10.3 3.4
Municipalbonds
Barclays Muni. Bond –0.8 1.6 8.6 3.7
Internationalstocks
MSCI EAFE†† (price return) 2.5 –1.7 –4.3 0.5
Dow Jones World (ex. U.S.) 2.6 –1.6 –1.5 3.2
*Annualized †Diversified funds only **Excludes money-market funds ††Europe, Australia, Far EastTracking Exchange-Traded Portfolios
Performance figures are total returns for periods ended Sept. 30; for largest exchange-traded funds and
other portfolios, ranked by asset size.
Assets Volume Expense Launch Performance (%)
Fund Symbol ($ billions) (000s) ratio date September3rd-qtr 1-year
SPDR S&P 500 ETF SPY 273.53 51,663.5 0.09 01/22/93 1.9 1.7 4.2
iShares Core S&P 500 ETF IVV 186.49 3,805.2 0.04 05/15/00 1.9 1.7 4.2
Vanguard Tot Stk Mkt Idx ETF VTI 122.28 1,702.0 0.03 05/24/01 1.7 1.1 2.9
Vanguard 500 Index ETF VOO 121.29 587.8 0.03 09/07/10 1.9 1.7 4.3
Invesco QQQ QQQ 74.72 26,310.3 0.20 03/10/99 0.8 1.2 2.6
Vanguard Developed Markets Idx ETF VEA 72.20 7,563.8 0.05 07/20/07 3.1 –1.0 –2.0
iShares Core US Aggregate Bond ETF AGG 66.03 6,359.8 0.04 09/22/03 –0.5 2.3 10.3
iShares Core MSCI EAFE IEFA 65.00 9,716.3 0.08 10/18/12 2.9 –0.9 –1.8
Vanguard Emg Mkts Stk Idx ETF VWO 60.73 14,543.4 0.12 03/04/05 1.4 –3.6 1.0
iShares MSCI EAFE ETF EFA 58.94 25,423.4 0.31 08/14/01 2.9 –1.1 –1.4
iShares Core MSCI Emerging Markets IEMG 54.22 21,387.6 0.14 10/18/12 1.9 –4.3 –2.4
Vanguard Value ETF VTV 49.88 1,126.1 0.04 01/26/04 3.4 1.1 3.6
iShares Core S&P Mid Cap ETF IJH 49.54 1,007.6 0.07 05/22/00 3.1 –0.1 –2.6
Vanguard Total Bond Market ETF BND 45.47 5,258.4 0.04 04/03/07 –0.6 2.4 10.5
iShares Russell 1000 Growth ETF IWF 44.89 2,250.5 0.19 05/22/00 –0.01 1.4 3.5
*Expense charge is a maximum of 8 cents a share †Assets are estimated N.A.= Not applicable, fund is too new.
Note: Total returns are based on the change in the net asset values, not changes in market prices. Net asset values can vary from market prices, which
therefore can reflect a premium or discount to the net asset values. Source: Thomson ReutersLoans can be easy to
get, but hard on you if
you stumble.M
any student-loan borrowers
have difficulty making re-
payments, but they don’t
always realize the devas-
tating, long-lasting finan-
cial consequences that can
result from missed payments.
Being delinquent—or, worse, defaulting—on
student loans can affect borrowers in many
ways. Consequences can include severely dam-
aged credit, wage garnishment, lost employment
opportunities and, in some cases, rescinding of
professional licenses. Understanding some basic
tenets about delinquency and default may help
borrowers avoid these adverse outcomes.
The first thing borrowers need to know is
the kind of loans they hold—federal, private or
some combination. They should go to the Na-
tional Student Loan Data System to get a list of
their federal loans, then match up those loans
with the ones listed on their credit report,
available from one of the three credit-reporting
companies. The loans that aren’t listed in the
NSLDS database are most likely private loans.
The distinction is important because default
and delinquency are handled differently for
federal and private loans.Federal student loans
The timeline:With federal loans, a borrower
becomes delinquent the first day after missing
a payment. Even if the borrower misses only
one monthly payment and then starts making
payments again, the loan account remains de-BYCHERYLWINOKURMUNKscripts—which can be problematic for borrow-
ers who need this type of documentation for a
job, she says.
Finally, be aware that it’s difficult to get rid
of a federal student loan you can’t repay. Such
loans are no longer subject to a statute of limi-
tations, meaning borrowers in default can be
pursued for their outstanding debt for an un-
limited period. And federal student loans are
difficult to discharge in bankruptcy.Resources:Borrowers should know who their
servicer is and should not hesitate to reach out
if they run into trouble paying off their federal
student debt. They can ask about temporary re-
lief options and longer-term possibilities such
as repayment tied to income level, Ms. Thomp-
son says. Borrowers can also use the Education
Department’s Repayment Estimator at student-
loans.gov to compare payment amounts among
applicable repayment plans. “You want to avoid
default at any cost,” Ms. Thompson says.Private student loans
The timeline:In some cases, private loans go
into default as soon as a borrower misses a
payment, skipping the delinquency process.
Other lenders consider private student loans to
be in default after borrowers are delinquent
for 120 days. Every lender makes its own poli-
cies, so read the promissory notes carefully.The consequences:Like federal student-loan
default, private student-loan default has many
negative consequences. For instance, once a
borrower is in default on a private student
loan, the lender will require immediate pay-
ment of the loan’s full balance. The lender will
also seek repayment from the loan’s cosigner,
if there is one. The borrower’s account could
be referred to a debt collector, and the de-
faulted loan may be reported to the national
credit bureaus. Collection charges may be
added to the loan balance, and the lender
could even decide to sue the borrower and/or
cosigner to collect the debt. If such a suit is
successful, the borrower may be subject to
wage garnishment or asset seizure.
Unlike federal loans, private student loans
generally have statutes of limitations for legal
action against borrowers. The time period var-
ies from state to state—up to 15 years, but
usually from three to 10 years—with six years
being the most common, according to Edvi-
sors, a provider of free information on paying
for college and financial aid.Resources:Borrowers who have trouble pay-
ing their private student loan should call their
servicer right away and see what options, if
any, may be available, and what the require-
ments are. It is a good idea to do this before
missing a payment and risking default. There
may be some options to negotiate that aren’t
available with federal loans, though private
lenders are under no obligation to offer debt-
rehabilitation programs, says Natalia Abrams,
executive director of Student Debt Crisis, an
advocacy organization for borrowers.
Private loans can be discharged during
bankruptcy—although it’s difficult. Borrowers
who are considering this option should contact
a bankruptcy or legal-aid attorney for help,
Ms. Abrams says.Ms. Winokur Munkis a writer in
West Orange, N.J. She can be reached
[email protected]. ISTOCKWhat to Know About
Student-Loan Payment Misses
Default and delinquency are handled differently for federal and private loans
SAVING FOR COLLEGE
linquent until the borrower repays the past-
due amount or makes other arrangements, ac-
cording to the Federal Student Aid office’s
website, studentaid.gov. Those arrangements
include deferment or forbearance, which let
you temporarily halt or reduce monthly pay-
ments, or changing repayment plans.
After 90 days, the delinquency will be re-
ported to the three major national credit bu-
reaus. This will lower the borrower’s credit score
and could have long-lasting ef-
fects. If the loan continues to
be delinquent, it could go into
default; exactly when this hap-
pens depends on the type of
loan. For a loan made under
the William D. Ford Federal Di-
rect Loan Program or the Fed-
eral Family Education Loan
Program, borrowers are con-
sidered to be in default if they don’t make their
scheduled payments for a period of at least 270
days. By contrast, borrowers who have a Federal
Perkins Loan could be deemed in default imme-
diately after missing just one payment.The consequences:Borrowers in default can
no longer receive deferment or forbearance,
and they lose eligibility for other benefits,
such as the ability to choose a repayment plan.
What’s more, the entire unpaid loan balance
and any owed interest will be due immediately,
according to the Federal Student Aid office.
Wage garnishment is another possible—and
increasingly likely—consequence. From July
2015 to September 2018, debt collectors recov-ered $2.3 billion in wage garnishments, accord-
ing to an analysis of Education Department data
by LendingTree’s Student Loan Hero division,
which helps borrowers manage and eliminate
student-loan debt. In the third quarter of last
year, $230 million in owed funds were reclaimed
through wage garnishments—the highest level
over the three-year study period, according to
the analysis. (Note that it’s not just wages at
stake: Tax refunds may be garnished, as well.)
There are significant long-
term consequences, as well.
For one thing, default can
do meaningful damage to a
borrower’s credit. Because stu-
dent debt is generally larger
than other types—such as
credit-card debt—defaulting
on a student loan can have a
greater impact on a credit
score, and can mean the difference between a
higher and lower rate on a future loan such as
a mortgage, says Theresa Williams-Barrett, vice
president of consumer lending and loan admin-
istration for Affinity Federal Credit Union in
Basking Ridge, N.J.
Moreover, there are at least 18 states where
default on federal student loans can mean sus-
pension of a driver’s license or professional li-
cense, says Jessica Thompson, director of policy
and planning at the Institute for College Access
& Success, a nonprofit research and advocacy
organization that focus on issues such as
higher-education affordability and student debt.
When borrowers default on a loan, it’s also
common for schools to withhold their tran-When borrowers
default on a loan,
schools could
withhold their
transcripts.Mutual-Fund Yardsticks: How Fund Categories Stack Up
Includes mutual funds and ETFs for periods ended Sept. 30. All data are final.
Perfomance (%)
Investment objective September 3rd-qtr 1-yr 5-yr*
Diversifiedstock& stock/bond funds
Large-Cap Core 1.6 1.4 3.4 9.4
Large-Cap Growth –0.6 –0.2 2.8 12.0
Large-Cap Value 3.2 1.4 1.9 7.2
Midcap Core 2.7 0.6 –0.2 6.6
Midcap Growth –1.7 –1.9 2.7 10.6
Midcap Value 4.5 0.5 –2.9 5.7
Small-Cap Core 3.0 –1.2 –7.4 6.8
Small-Cap Growth –1.9 –4.5 –6.6 9.7
Small-Cap Value 5.4 –0.6 –10.0 5.1
Multicap Core 1.6 0.9 1.6 8.2
Multicap Growth –1.2 –1.4 1.1 10.4
Multicap Value 3.8 0.8 –0.5 6.5
Equity Income 3.0 2.1 3.6 7.6
S&P 500 Funds 1.8 1.6 3.9 10.3
Specialty Divers. Equity 0.1 0.4 0.2 –2.1
Balanced 0.9 1.0 4.1 5.5
Stock/Bond Blend 1.0 0.6 3.1 5.2
Avg. U.S. Stock Fund† 1.6 –0.3 –0.8 8.4
Sectorstockfunds
Science & Technology –0.4 –1.1 1.7 14.9
Telecommunication 0.7 0.2 0.5 5.2
Health/Biotechnology –3.1 –6.8 –11.4 7.0
Utility 3.4 6.4 20.4 9.5
Natural Resources 3.4 –9.1 –27.0 –11.0
Sector 1.7 4.0 10.5 7.4
Real Estate 2.0 6.9 17.3 9.2Performance (%)
Investment objective September 3rd-qtr 1-yr 5-yr*
Worldstockfunds
Global 1.6 –0.5 0.8 6.3
International (ex-U.S.) 2.3 –1.4 –2.4 2.9
European Region 2.5 –2.1 –2.6 2.9
Emerging Markets 1.6 –3.5 0.6 1.8
Latin American 1.9 –4.5 14.9 0.01
Pacific Region 1.9 –1.7 –1.6 5.0
Gold Oriented –9.5 4.3 35.2 3.4
Global Equity Income 2.7 0.9 2.4 4.4
International Equity Income 2.6 –1.2 –0.6 1.6
Taxable-bondfunds
Short-Term 0.02 0.7 4.2 1.7
Long-Term –0.6 2.8 11.6 4.1
Intermediate Bond –0.5 2.1 9.5 3.1
Intermediate U.S. -0.8 1.0 5.9 1.8
Short-Term U.S. –0.5 2.1 9.5 3.1
Long-Term U.S. –1.0 3.0 12.1 3.1
General U.S. Taxable –0.3 1.9 8.8 3.7
High-Yield Taxable 0.4 1.2 5.5 4.3
Mortgage -0.01 1.4 7.4 2.4
World Bond 0.2 0.3 6.9 2.3
Avg. Taxable-Bond Fund** –0.1 1.3 6.5 2.7
Municipal-bondfunds
Short-Term Muni -0.04 0.5 3.7 1.1
Intermediate Muni –0.7 1.2 7.0 2.5
General & Insured Muni –0.7 1.7 8.2 3.5
High-Yield Muni –0.5 2.1 8.4 4.9Data provided byLargest Taxable-Bond Funds
Total returns are for periods ended Sept. 30 and are final; assets are through Aug. 30 and include
all share classes.
Assets Performance (%)
Fund Name Symbol ($ billions) Sept. 3rd qtr 1 yr 3 yr* 5 yr* 10 yr*
Vanguard Tot Bd;Adm VBTLX 241.0 –0.6 2.4 10.4 2.9 3.4 3.7
Vanguard Tot Bd II;Inv VTBIX 182.7 –0.6 2.4 10.4 2.8 3.3 3.6
Vanguard Tot Itl BI;Adm VTABX 137.8 –0.5 3.0 11.3 4.1 4.5 N.A.
PIMCO:Income;Inst PIMIX 129.3 0.8 –0.1 6.2 5.3 5.1 8.9
Met West:Total Return;I MWTIX 79.4 –0.5 2.2 10.6 3.2 3.3 5.3
PIMCO:Tot Rtn;Inst PTTRX 69.0 –0.4 2.4 10.1 3.6 3.6 4.3
iShares:Core US Agg Bd AGG 66.0 –0.5 2.3 10.3 2.9 3.3 3.6
Dodge & Cox Income DODIX 61.9 –0.8 1.3 8.3 3.5 3.5 4.4
Vanguard Sh-Tm Inv;Adm VFSUX 60.8 –0.1 1.0 5.9 2.5 2.5 2.8
DoubleLine:Tot Rtn;I DBLTX 54.3 –0.4 1.6 7.9 3.2 3.5 N.A.
Lord Abbett Sh Dur;F LDLFX 52.5 0.1 0.9 5.2 2.8 2.6 3.5
Vanguard Sh-Tm B;ETF BSV 49.2 –0.2 0.9 6.0 2.0 1.9 2.0
American Funds Bond;A ABNDX 47.7 –0.6 1.6 9.3 2.6 3.0 3.8
PGIM Tot Rtn Bond;Z PDBZX 47.6 –0.3 2.7 12.1 4.4 4.6 5.7
Fidelity US Bond Index FXNAX 44.2 –0.6 2.3 10.3 2.8 3.3 N.A.
Fidelity Str Adv Cre Inc FPCIX 42.0 –0.4 2.1 10.0 3.5 3.7 4.5
iShares:iBoxx $IG Corp LQD 36.6 –0.9 3.3 15.0 4.7 5.0 5.8
Vanguard Int-T B;Adm VBILX 34.4 –0.7 2.4 12.4 3.1 3.9 4.8
BlackRock:Str Inc Opp;I BSIIX 33.4 0.1 0.9 5.5 3.8 2.8 4.6
JPMorgan:Core Bond;R6 JCBUX 32.2 –0.6 2.5 10.6 3.2 3.6 4.1
*Annualized N.A.=not applicable, fund is too newData provided by