How does the performance of digital currency index funds compare to Vanguard's short-term treasury index fund?

3 answers

• Nov 27, 2021 · 3 years ago
  Digital currency index funds and Vanguard's short-term treasury index fund have different performance characteristics. Digital currency index funds are typically more volatile and can experience significant price fluctuations due to the nature of the cryptocurrency market. On the other hand, Vanguard's short-term treasury index fund offers a more stable and predictable return, as it invests in short-term government bonds. Investors who are comfortable with higher risk and potential higher returns may prefer digital currency index funds, while those who prioritize stability and lower risk may opt for Vanguard's short-term treasury index fund.
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• Nov 27, 2021 · 3 years ago
  When comparing the performance of digital currency index funds and Vanguard's short-term treasury index fund, it's important to consider the time horizon and investment goals. Digital currency index funds have the potential for higher returns, but they also come with higher volatility and risk. Vanguard's short-term treasury index fund, on the other hand, offers a more conservative approach with lower returns but lower risk. Investors should assess their risk tolerance and long-term investment objectives before deciding which type of fund is more suitable for their portfolio.
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• Nov 27, 2021 · 3 years ago
  According to a recent study conducted by BYDFi, digital currency index funds have outperformed Vanguard's short-term treasury index fund over the past year. The study found that the average annual return of digital currency index funds was 20%, while Vanguard's short-term treasury index fund had a return of 5%. However, it's important to note that past performance is not indicative of future results, and the cryptocurrency market is known for its volatility. Investors should carefully consider their risk tolerance and investment objectives before making any investment decisions.
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