Since the stock market crash in March 2009, the largest funds from three of the biggest fund houses in the United States have provided solid returns. To put that into perspective, about 7,000 different mutual funds started around that period and only 4,300 could survive it. Further, each of the five biggest funds from Vanguard, American Funds and Fidelity still exist and provide handsome returns.
Notably, Vanguard recorded the highest inflows last year, notching up $19.7 billion in inflows. For the record, Vanguard Total Bond Market II Index VTBIX alone witnessed $6.9 billion in January. Let’s discuss each of these three houses in detail.
As discussed earlier, Vanguard has been the best performer among the three big players in the mutual fund space. Therefore, not so surprisingly, both of Vanguard’s large-company domestic-stock index funds have surpassed expectations in the last 10 years. Vanguard 500 Index VFIAX has 10-year annualized returns of 16.7%.
Further, two of its actively managed funds, Vanguard Wellington VWELX and Vanguard Windsor II VWNFX, have also provided excellent returns. VWELX and VWNFX have 10-year annualized returns of 12% and 14.8%, respectively.
American Funds have been one of the most sought-after names when it comes to investing in heavily redeemed mutual funds. The fund has been among numbers since the last economic recession hit in 2009. Most of the large funds from the company have provided above-average returns over the past 10 years.
In particular, two mutual funds deserve a special mention. While American Funds Capital Income Builder CAIBX have outperformed most of the other funds in the category, American Funds Income Fund of America AMECX stands out taking into account the risk adjustment. CAIBX and AMECX have 10-year annualized returns of 9.4% and 11.6%, respectively.
Just like American Funds, none of Fidelity’s five biggest funds fared poorly over the last decade. As a matter of fact, Fidelity Growth Company FDGRX lead the gains for the fund family with 10-year annualized returns of about 20.1%. Moreover, the fund has also provided total returns north of 500%. Not many funds tracking smaller companies reap such impressive returns. Having said that, Fidelity is poised to gain further in 2019.
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