Big Al45

Lessons From the Banking Meltdown

This post is somewhat superficial. You're speculating that the managers of the cited funds held on to Fannie and Freddie from 6/30 until last weekend. They may have bailed out before the collapse (or bought even more on the way down - like Bill Miller supposedly did.)

Also you've included the Vanguard Index 500 on the list. As an index fund, its not like Vanguard management had a choice in the matter. That is the risk in owning an index fund - it includes the good, bad, and potentially insolvent stocks that constitute the index.

BTW Despite this risk, studies have shown that index funds beat nearly all managed funds over a 20 year horizon.