Founded by John C. Bogle in 1975, Vanguard is one of the world’s largest investment management companies. With around $6.2 trillion of assets under management, the company offered nearly 190 domestic funds and 220 funds for foreign markets as of Jan 31, 2020. It offers asset management and financial planning services to clients throughout the globe.
Vanguard stands apart from the other mutual fund companies because it is owned by the funds themselves. The company believes that this structure helps management focus better on shareholder interests. Among the advantages, Vanguard claims to offer is low-cost, no-load funds.
Below we share with you three top-ranked Vanguard mutual funds. Each has earned a Zacks Mutual Fund Rank #1 (Strong Buy) and is expected to outperform its peers in the future. Investors can click here to see the complete list of funds.
Vanguard Wellington Fund Investor Shares VWELX seeks appreciation of capital in the long-term and generates moderate current income. The fund invests the lion’s share of its assets in dividend-paying as well as non-dividend-paying common stocks of large-cap companies. The fund also invests assets, to a lesser extent, in investment-grade corporate bonds and mortgage-backed securities. VWELX has three-year annualized returns of 13%.
As of the end of June 2021, VWELX held 1,225 issues with 4.9% of its assets invested in Alphabet Inc Class A.
Vanguard Explorer Value Fund Investor Shares VEVFX seeks appreciation of capital over the long term. The fund invests primarily in stocks of small and mid-size domestic companies, picking stocks considered by the fund’s advisor as undervalued. Also, such stocks may have above-average dividend yields. VEVFX has three-year annualized returns of 8.9%.
Eugene Fox has been the fund manager of VEVFX since 2010.
Vanguard LifeStrategy Growth Fund Investor Shares VASGX invests in other Vanguard mutual funds with asset allocation of nearly 80% in equity securities and about 20% in debt securities and bonds. VASGX seeks appreciation of income and capital for the long run. VASGX has three-year annualized returns of 12.6%.
VASGX has an expense ratio of 0.14% compared with the category average of 0.71%.
To view the Zacks Rank and past performance of all Vanguard mutual funds, investors can click here to see the complete list of funds.
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