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3 Top Vanguard Mutual Funds to Build a Solid Portfolio
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Headquartered in Vally Forge, PN, Vanguard is one of the world's largest investment management firms and was founded by John C. Bogle in 1975. It had $8.2 trillion in assets under management globally till Jul 31, 2023. The company had more than 20,000 employees globally on Dec 31, 2023, and offers 206 funds in the United States and 216 in foreign markets.
Vanguard is owned entirely by its funds — a unique feature among mutual fund firms. According to the company, this structure allows management to focus more on shareholder interests. Among the most significant advantages, Vanguard claims to offer low-cost, no-load funds. This means that the fund doesn’t charge investors when fund shares are being bought or sold.
Mutual fund investing is preferred by investors who wish to diversify their portfolio among various asset classes but lack professional expertise in managing funds. Vanguard mutual funds should be good investment choices since they provide low-cost, uncomplicated equity, fixed-income and multi-asset funds that can help investors meet their goals.
We have thus selected three Vanguard mutual funds that have wide exposure in sectors like industrial cyclical, technology and consumer durables since they have given a positive return and are expected to perform well in the near future.
The Federal Reserve has kept the overnight interest rate unchanged at its current level of 5.25-5.5% in its last policy meeting. The Fed Chair Jerome Powell believes despite the spike in inflation in recent months, the overall trajectory of inflation is consistent and declining gradually toward the 2% target. However, the central bank hinted that it expects three rate cuts in 2024 despite sticky inflation.
These funds boast a Zacks Mutual Fund Rank #1 (Strong Buy), have positive year-to-date, three-year and five-year annualized returns, minimum initial investments within $5000, and carry a low expense ratio of 1% or less. Mutual funds, in general, reduce transaction costs and diversify portfolios without an array of commission charges mostly associated with stock purchases (read more: Mutual Funds: Advantages, Disadvantages, and How They Make Investors Money).
Vanguard Energy (VGENX - Free Report) fund invests most of its net assets in common stocks. VGENX advisors generally invest in companies that are principally engaged in the energy industry, like exploration, production, and transmission of energy or fuels, manufacturing and servicing of products required for energy research, energy conservation and pollution control.
G. Thomas Levering has been the lead manager of VGENX since Jan 15, 2020. Most of the fund’s exposure was in companies like Shell PLC (9.8%), Exxon Mobil (5.2%) and ConocoPhillips (4.7%) as of Oct 31, 2023.
VGENX’s three-year and five-year annualized returns are 17.1% and 3.3%, respectively. VGENX has an annual expense ratio of 0.44%.
To see how this fund performed compared to its category and other 1, 2 and 3 Ranked Mutual Funds, please click here.
Vanguard Growth and Income Fund (VQNPX - Free Report) invests most of its net assets in stocks that provide dividend income as well as the potential for capital appreciation. VQNPX advisors use quantitative approaches to select a broadly diversified group of stocks that have investment characteristics like companies listed in the S&P 500 Index but are expected to provide a higher total return than that of the index.
Hal W. Reynolds has been the lead manager of VQNPX since Sep 29, 2011. Most of the fund’s holdings were in companies like Microsoft (7%), Apple (5%) and Amazon.com (4.6%) as of Dec 31, 2023.
VQNPX’s three-year and five-year annualized returns are 14.6% and 10.8%, respectively. VQNPX has an annualexpense ratio is 0.32%.
Vanguard Selected Value (VASVX - Free Report) invests most of its net assets in common stocks of mid-cap domestic companies, which, according to its advisors, are undervalued and often have above-average dividend yield. VASVX advisors consider undervalued stocks as those that are out of favor with investors and are trading at below-average prices in relation to measures such as earnings and book value.
Richard Lawrence Greenberg has been the lead manager of VASVX since Feb 24, 2005. Most of the fund’s exposure was in companies like AerCap (3.7%), Global Life (2%) and Acuity Brands (1.7%) as of Oct 31, 2023.
VASVX’s three-year and five-year annualized returns are 11.5% and 12.4%, respectively. VASVX has an annual expense ratio of 0.43%.
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3 Top Vanguard Mutual Funds to Build a Solid Portfolio
Headquartered in Vally Forge, PN, Vanguard is one of the world's largest investment management firms and was founded by John C. Bogle in 1975. It had $8.2 trillion in assets under management globally till Jul 31, 2023. The company had more than 20,000 employees globally on Dec 31, 2023, and offers 206 funds in the United States and 216 in foreign markets.
Vanguard is owned entirely by its funds — a unique feature among mutual fund firms. According to the company, this structure allows management to focus more on shareholder interests. Among the most significant advantages, Vanguard claims to offer low-cost, no-load funds. This means that the fund doesn’t charge investors when fund shares are being bought or sold.
Mutual fund investing is preferred by investors who wish to diversify their portfolio among various asset classes but lack professional expertise in managing funds. Vanguard mutual funds should be good investment choices since they provide low-cost, uncomplicated equity, fixed-income and multi-asset funds that can help investors meet their goals.
We have thus selected three Vanguard mutual funds that have wide exposure in sectors like industrial cyclical, technology and consumer durables since they have given a positive return and are expected to perform well in the near future.
The Federal Reserve has kept the overnight interest rate unchanged at its current level of 5.25-5.5% in its last policy meeting. The Fed Chair Jerome Powell believes despite the spike in inflation in recent months, the overall trajectory of inflation is consistent and declining gradually toward the 2% target. However, the central bank hinted that it expects three rate cuts in 2024 despite sticky inflation.
These funds boast a Zacks Mutual Fund Rank #1 (Strong Buy), have positive year-to-date, three-year and five-year annualized returns, minimum initial investments within $5000, and carry a low expense ratio of 1% or less. Mutual funds, in general, reduce transaction costs and diversify portfolios without an array of commission charges mostly associated with stock purchases (read more: Mutual Funds: Advantages, Disadvantages, and How They Make Investors Money).
Vanguard Energy (VGENX - Free Report) fund invests most of its net assets in common stocks. VGENX advisors generally invest in companies that are principally engaged in the energy industry, like exploration, production, and transmission of energy or fuels, manufacturing and servicing of products required for energy research, energy conservation and pollution control.
G. Thomas Levering has been the lead manager of VGENX since Jan 15, 2020. Most of the fund’s exposure was in companies like Shell PLC (9.8%), Exxon Mobil (5.2%) and ConocoPhillips (4.7%) as of Oct 31, 2023.
VGENX’s three-year and five-year annualized returns are 17.1% and 3.3%, respectively. VGENX has an annual expense ratio of 0.44%.
To see how this fund performed compared to its category and other 1, 2 and 3 Ranked Mutual Funds, please click here.
Vanguard Growth and Income Fund (VQNPX - Free Report) invests most of its net assets in stocks that provide dividend income as well as the potential for capital appreciation. VQNPX advisors use quantitative approaches to select a broadly diversified group of stocks that have investment characteristics like companies listed in the S&P 500 Index but are expected to provide a higher total return than that of the index.
Hal W. Reynolds has been the lead manager of VQNPX since Sep 29, 2011. Most of the fund’s holdings were in companies like Microsoft (7%), Apple (5%) and Amazon.com (4.6%) as of Dec 31, 2023.
VQNPX’s three-year and five-year annualized returns are 14.6% and 10.8%, respectively. VQNPX has an annualexpense ratio is 0.32%.
Vanguard Selected Value (VASVX - Free Report) invests most of its net assets in common stocks of mid-cap domestic companies, which, according to its advisors, are undervalued and often have above-average dividend yield. VASVX advisors consider undervalued stocks as those that are out of favor with investors and are trading at below-average prices in relation to measures such as earnings and book value.
Richard Lawrence Greenberg has been the lead manager of VASVX since Feb 24, 2005. Most of the fund’s exposure was in companies like AerCap (3.7%), Global Life (2%) and Acuity Brands (1.7%) as of Oct 31, 2023.
VASVX’s three-year and five-year annualized returns are 11.5% and 12.4%, respectively. VASVX has an annual expense ratio of 0.43%.
Want key mutual fund info delivered straight to your inbox?
Zacks' free Fund Newsletter will brief you on top news and analysis, as well as top-performing mutual funds, each week. Get it free >>