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5 Top Vanguard Mutual Funds to Buy as Inflation Softens
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Major U.S. indexes like the S&P 500, the Nasdaq Composite and the Dow Jones Industrial Average have given investors positive returns of 17.2%, 17% and 9.0%, respectively, in the year-to-date period.
Macroeconomic data for the month of July, like the producer price index (PPI), consumer price index (CPI), advance GDP growth rate estimates and labor market reports showed signs of improvement. U.S. Federal Reserve Chairman Jerome Powell, in his keynote speech at the annual Jackson Hole Economic Policy Symposium, talked about the need for key interest rate easing after holding it for more than a year. Investors are expecting the Fed to start easing interest rates by September. However, the timing of the rate cut is still dependent on incoming macroeconomic data to balance risks.
In such a situation, mutual fund investing can help those who wish to diversify their portfolio among various asset classes but lack professional expertise in managing funds. Vanguard mutual funds like Vanguard Selected Value (VASVX - Free Report) , Vanguard Growth and Income Fund (VQNPX - Free Report) , Vanguard Windsor Investor Shares (VWNDX - Free Report) , Vanguard Equity Income (VEIPX - Free Report) and Vanguard PRIMECAP (VPMCX - Free Report) should be good choices since they provide low-cost, uncomplicated equity, fixed-income and multi-asset funds that can help investors meet their goals.
These funds have wide exposure in sectors like finance, industrial cyclical, technology, retail trade, non-durable, and health since they have given a positive return and are expected to perform well in the near future.
Why Invest in Vanguard Mutual Funds?
Vanguard, one of the world’s largest asset management corporations, was founded by John C. Bogle on May 1, 1975. Headquartered in Vally Forge, PN, the company had $8 trillion in assets under management globally till Dec. 31, 2023. Vanguard had more than 20,000 employees worldwide and offered 208 funds in the United States and 215 in foreign markets to 50 million investors as of Dec. 31, 2023.
Vanguard is owned entirely by 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.
These funds boast a Zacks Mutual Fund Rank #1 (Strong Buy), have positive three-year and five-year annualized returns, minimum initial investments within $5000, and carry a low expense ratio of less than 1%. 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 Selected Value fund invests most of its net assets in common stocks of mid-cap domestic companies, which, according to its advisors, are undervalued and often have an 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. 25, 2005. Most of the fund’s exposure was in companies like AerCap (3.4%), Baxter International (1.8%) and TE Connectivity (1.7%) as of April 30, 2024.
VASVX’s three-year and five-year annualized returns of almost 10.5% and 13%, respectively. VASVX has an annual expense ratio of 0.43%.
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 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 on 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 Sept. 30, 2011. Most of the fund’s holdings were in companies like Microsoft (6.7%), NVIDIA (5.2%) and Amazon.com (4.8%) as of March 31, 2024.
VQNPX’s three-year and five-year annualized returns are 9.7% and 14.9%, respectively. VQNPX has an annual expense ratio is 0.34%.
Vanguard Windsor Investor Shares fund invests most of its net assets in common stocks of large and mid-cap domestic companies, which, according to its advisors, are undervalued. VWNDX advisors consider undervalued stocks as those that are out of favor with investors and are trading at prices below average in relation to measures such as earnings and book value.
Richard S. Pzena has been the lead manager of VWNDX since Aug. 2, 2012. Most of the fund’s exposure was in companies like Tyson Foods (1.9%), Edison International (1.9%) and Pfizer (1.8%) as of April 30, 2024.
VWNDX's three-year and five-year annualized returns of almost 9.2% and 13.2%, respectively. VWNDX has an annual expense ratio of 0.37%.
Vanguard Equity Income fund invests most of its net assets in common stocks of mid and large-capitalization companies that, according to its advisor, are relatively undervalued. VEIPX advisors choose to invest in stocks that consistently pay out above-average levels of dividends.
Matthew C Hand has been the lead manager of VEIPX since Oct. 5, 2021. Most of the fund’s exposure is in companies like JPMorgan Chase (4.2%), Merck (2.7%), and Johnson & Johnson (2.5%) as of March 31, 2024.
VEIPX's three-year and five-year annualized returns are almost 8.9% and 11%, respectively. VEIPX has an annual expense ratio of 0.27%.
Vanguard PRIMECAP fund invests most of its net assets companies that have above-average earnings growth potential that is not reflected in their current market prices. VPMCX advisors prefers to invest in large- and mid-cap stocks.
Joel P. Fried has been the lead manager of VPMCX since Dec. 31, 1988, and most of the fund’s exposure is in companies like Eli Lilly (12.7%), Micron Technology (3.7%) and Microsoft (3.4%) as of March 31, 2024.
VPMCX’s three-year and five-year annualized returns of almost 8.5% and 14.2%, respectively. VPMCX has an annual expense ratio of 0.38%.
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5 Top Vanguard Mutual Funds to Buy as Inflation Softens
Major U.S. indexes like the S&P 500, the Nasdaq Composite and the Dow Jones Industrial Average have given investors positive returns of 17.2%, 17% and 9.0%, respectively, in the year-to-date period.
Macroeconomic data for the month of July, like the producer price index (PPI), consumer price index (CPI), advance GDP growth rate estimates and labor market reports showed signs of improvement. U.S. Federal Reserve Chairman Jerome Powell, in his keynote speech at the annual Jackson Hole Economic Policy Symposium, talked about the need for key interest rate easing after holding it for more than a year. Investors are expecting the Fed to start easing interest rates by September. However, the timing of the rate cut is still dependent on incoming macroeconomic data to balance risks.
In such a situation, mutual fund investing can help those who wish to diversify their portfolio among various asset classes but lack professional expertise in managing funds. Vanguard mutual funds like Vanguard Selected Value (VASVX - Free Report) , Vanguard Growth and Income Fund (VQNPX - Free Report) , Vanguard Windsor Investor Shares (VWNDX - Free Report) , Vanguard Equity Income (VEIPX - Free Report) and Vanguard PRIMECAP (VPMCX - Free Report) should be good choices since they provide low-cost, uncomplicated equity, fixed-income and multi-asset funds that can help investors meet their goals.
These funds have wide exposure in sectors like finance, industrial cyclical, technology, retail trade, non-durable, and health since they have given a positive return and are expected to perform well in the near future.
Why Invest in Vanguard Mutual Funds?
Vanguard, one of the world’s largest asset management corporations, was founded by John C. Bogle on May 1, 1975. Headquartered in Vally Forge, PN, the company had $8 trillion in assets under management globally till Dec. 31, 2023. Vanguard had more than 20,000 employees worldwide and offered 208 funds in the United States and 215 in foreign markets to 50 million investors as of Dec. 31, 2023.
Vanguard is owned entirely by 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.
These funds boast a Zacks Mutual Fund Rank #1 (Strong Buy), have positive three-year and five-year annualized returns, minimum initial investments within $5000, and carry a low expense ratio of less than 1%. 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 Selected Value fund invests most of its net assets in common stocks of mid-cap domestic companies, which, according to its advisors, are undervalued and often have an 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. 25, 2005. Most of the fund’s exposure was in companies like AerCap (3.4%), Baxter International (1.8%) and TE Connectivity (1.7%) as of April 30, 2024.
VASVX’s three-year and five-year annualized returns of almost 10.5% and 13%, respectively. VASVX has an annual expense ratio of 0.43%.
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 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 on 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 Sept. 30, 2011. Most of the fund’s holdings were in companies like Microsoft (6.7%), NVIDIA (5.2%) and Amazon.com (4.8%) as of March 31, 2024.
VQNPX’s three-year and five-year annualized returns are 9.7% and 14.9%, respectively. VQNPX has an annual expense ratio is 0.34%.
Vanguard Windsor Investor Shares fund invests most of its net assets in common stocks of large and mid-cap domestic companies, which, according to its advisors, are undervalued. VWNDX advisors consider undervalued stocks as those that are out of favor with investors and are trading at prices below average in relation to measures such as earnings and book value.
Richard S. Pzena has been the lead manager of VWNDX since Aug. 2, 2012. Most of the fund’s exposure was in companies like Tyson Foods (1.9%), Edison International (1.9%) and Pfizer (1.8%) as of April 30, 2024.
VWNDX's three-year and five-year annualized returns of almost 9.2% and 13.2%, respectively. VWNDX has an annual expense ratio of 0.37%.
Vanguard Equity Income fund invests most of its net assets in common stocks of mid and large-capitalization companies that, according to its advisor, are relatively undervalued. VEIPX advisors choose to invest in stocks that consistently pay out above-average levels of dividends.
Matthew C Hand has been the lead manager of VEIPX since Oct. 5, 2021. Most of the fund’s exposure is in companies like JPMorgan Chase (4.2%), Merck (2.7%), and Johnson & Johnson (2.5%) as of March 31, 2024.
VEIPX's three-year and five-year annualized returns are almost 8.9% and 11%, respectively. VEIPX has an annual expense ratio of 0.27%.
Vanguard PRIMECAP fund invests most of its net assets companies that have above-average earnings growth potential that is not reflected in their current market prices. VPMCX advisors prefers to invest in large- and mid-cap stocks.
Joel P. Fried has been the lead manager of VPMCX since Dec. 31, 1988, and most of the fund’s exposure is in companies like Eli Lilly (12.7%), Micron Technology (3.7%) and Microsoft (3.4%) as of March 31, 2024.
VPMCX’s three-year and five-year annualized returns of almost 8.5% and 14.2%, respectively. VPMCX has an annual expense ratio of 0.38%.
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 >>