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3 Top Vanguard Mutual Funds to Buy for Long-Term Gains
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Founded by John C. Bogle in 1975, it is one of the world's largest investment management firms. Headquartered in Vally Forge, PN, Vanguard had $7.7 trillion of assets under management globally as of Apr 30, 2023. It had more than 20,000 employees globally on Dec 31, 2022, and offers 203 funds in the United States and 216 in foreign markets.
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.
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 finance, industrial cyclical, technology and consumer durables that have given positive returns in the past and are expected to perform well in the long term.
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 compared to the category average. 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 Whitehall Funds, Selected Value Fund (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, and most of the fund’s exposure was in companies like AerCap (3.4%), TE Connectivity (1.8%) and Global Life (1.7%) as of 7/31/2023.
VASVX’s three-year and five-year annualized returns are 18.6% and 9%, respectively. VASVX has an annual expense ratio of 0.43%, which is less than the category average of 1.01%.
To see how this fund performed compared to its category and other 1, 2 and 3 Ranked Mutual Funds, please click here.
Vanguard Windsor Fund (VWNDX - Free Report) 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 1, 2012. Most of the fund’s exposure was in companies like Westinghouse Air Brake Technologies (2.2%), Pfizer (2.1%) and Alphabet (2.0%) as of 7/31/2023.
VWNDX’s three-year and five-year annualized returns are 15.3% and 10.1%, respectively. VWNDX has an annual expense ratio of 0.42% compared to the category average of 0.94%.
Vanguard Explorer Value (VEVFX - Free Report) fund invests most of its net assets in small and mid-cap U.S. companies, which, according to the advisor, are undervalued. VEVFX advisors consider a stock as undervalued if it is out of favor among investors, trading at a price below average in relation to measures estimated such as earnings and book value, and has an above-average dividend yield.
John W. Rogers has been the lead manager of VEVFX since Jan 30, 2022, and most of the fund’s exposure is in companies like Silgan Holdings (2.7%), Nexstar Media (1.8%) and Gaming & Leisure Properties (1.7%) as of 8/31/2023.
VEVFX’s three-year and five-year annualized returns are almost 10.8% and 4.7%, respectively. VEVFX has an annual expense ratio of 0.49% compared to the category average of 1.03%.
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3 Top Vanguard Mutual Funds to Buy for Long-Term Gains
Founded by John C. Bogle in 1975, it is one of the world's largest investment management firms. Headquartered in Vally Forge, PN, Vanguard had $7.7 trillion of assets under management globally as of Apr 30, 2023. It had more than 20,000 employees globally on Dec 31, 2022, and offers 203 funds in the United States and 216 in foreign markets.
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.
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 finance, industrial cyclical, technology and consumer durables that have given positive returns in the past and are expected to perform well in the long term.
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 compared to the category average. 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 Whitehall Funds, Selected Value Fund (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, and most of the fund’s exposure was in companies like AerCap (3.4%), TE Connectivity (1.8%) and Global Life (1.7%) as of 7/31/2023.
VASVX’s three-year and five-year annualized returns are 18.6% and 9%, respectively. VASVX has an annual expense ratio of 0.43%, which is less than the category average of 1.01%.
To see how this fund performed compared to its category and other 1, 2 and 3 Ranked Mutual Funds, please click here.
Vanguard Windsor Fund (VWNDX - Free Report) 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 1, 2012. Most of the fund’s exposure was in companies like Westinghouse Air Brake Technologies (2.2%), Pfizer (2.1%) and Alphabet (2.0%) as of 7/31/2023.
VWNDX’s three-year and five-year annualized returns are 15.3% and 10.1%, respectively. VWNDX has an annual expense ratio of 0.42% compared to the category average of 0.94%.
Vanguard Explorer Value (VEVFX - Free Report) fund invests most of its net assets in small and mid-cap U.S. companies, which, according to the advisor, are undervalued. VEVFX advisors consider a stock as undervalued if it is out of favor among investors, trading at a price below average in relation to measures estimated such as earnings and book value, and has an above-average dividend yield.
John W. Rogers has been the lead manager of VEVFX since Jan 30, 2022, and most of the fund’s exposure is in companies like Silgan Holdings (2.7%), Nexstar Media (1.8%) and Gaming & Leisure Properties (1.7%) as of 8/31/2023.
VEVFX’s three-year and five-year annualized returns are almost 10.8% and 4.7%, respectively. VEVFX has an annual expense ratio of 0.49% compared to the category average of 1.03%.
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 >>