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3 Best-Rated Vanguard Mutual Funds to Buy Now

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Vanguard is one of the world’s largest asset management corporations that manages more than $3 trillion in global assets under management. It offers nearly 175 domestic funds and 145 funds for foreign markets (as of Dec 31, 2015). It offers asset management and financial planning services to clients across the world.

Unlike other mutual fund companies, Vanguard is owned by the funds themselves, which helps its management focus more on shareholder interests. Its other advantages include the claim to offer low-cost, no-load funds. Vanguard was founded by John C. Bogle in 1975.

Below we share with you three top-rated 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 Vanguard funds, their Zacks Rank and past performance.

Vanguard Short-Term Treasury Investor (VFISX - Free Report) seeks current income with minimum price volatility. VFISX invests the lion’s share of its assets in U.S. Treasury instruments such as bills, bonds and notes. The fund seeks to maintain a dollar-weighted average maturity between 1 and 4 years. The Vanguard Short-Term Treasury Investor fund has a three-year annualized return of 1.1%.

Gemma Wright-Casparius is the fund manager of VFISX since 2015.

Vanguard Growth & Income Investor (VQNPX - Free Report) invests in a diversified group of stocks chosen with the help of quantitative analysis. VQNPX seeks stocks that are believed to provide dividend income, have an impressive growth prospect and, as a group, are likely to provide higher returns than the Standard & Poor's 500 Index while having similar risk characteristics. The fund invests a minimum of 65% of its assets in companies included in the index. Vanguard Growth & Income Investor has a three-year annualized return of 11.2%.

As of March 2016, VQNPX held 954 issues with 3.26% of its assets invested in Apple Inc.

Vanguard Ohio Long-Term Tax-Exempt (VOHIX - Free Report) seeks tax-free current income. VOHIX invests a major portion of its assets in municipal bonds that are expected to provide income exempted from federal and Ohio state taxes. The fund generally invests in high-quality securities of the Ohio state and local governments and their affiliates. VOHIX is expected to maintain a dollar-weighted average maturity of 10 to 25 years. Vanguard Ohio Long-Term Tax-Exempt is a non-diversified fund and has a three-year annualized return of 7.2%.

Marlin G. Brown is the fund manager of VOHIX since 2008.

To view the Zacks Rank and past performance of all Vanguard mutual funds, investors can click here to see the complete list of funds.

About Zacks Mutual Fund Rank

By applying the Zacks Rank to mutual funds, investors can find funds that not only outpaced the market in the past but are also expected to outperform going forward. Pick the best mutual funds with the Zacks Rank.

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