Vanguard was founded in 1975 by John C. Bogle and is headquartered in Vally Forge, PA. It is one of the world’s largest asset management corporations, managing around $7.2 trillion in total assets worldwide as of Dec 31, 2022.
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 better on shareholder interests. Among other advantages, it claims to offer low-cost, no-load funds. This means the fund does not charge investors when fund shares are bought or sold.
In the past year, the S&P 500, the Dow, and the Nasdaq have posted negative returns of 10.59%, 5.25%, and 15.52%, respectively, due to concerns about stubbornly high inflation, a hawkish Federal Reserve and a meltdown in the banking sector. Compared with the broader markets, the below-mentioned funds have given a positive return.
We have thus selected five Vanguard mutual funds that not only preserved wealth but also generated stellar returns for investors. We expect them to perform well in the long term as well. These funds have the majority of their investments in sectors like finance, technology, industrial cycle, consumer durables, retail trade and health.
Also, mutual funds, in general, diversify portfolios without several commission charges that are mainly associated with stock purchases and trim transaction costs (read more:
Mutual Funds: Advantages, Disadvantages, and How They Make Investors Money).
We have, thus, chosen five no-load Vanguard mutual funds that investors should buy now for the long term. These funds possess a Zacks Mutual Fund Rank #1 (Strong Buy), positive three-year and five-year annualized returns, minimum initial investments within $5000, and expense ratios considerably lower than the category average. These funds have come up with comparatively strong performances and also have lower fees.
Vanguard Global Capital Cycles Fund Investor Shares ( VGPMX Quick Quote VGPMX - Free Report) seeks above-average compounded returns by investing in securities of domestic and foreign companies where capital spending is declining, and avoiding businesses that can be easily replicated. VGPMX advisors typically invest across a range of sectors with exposure in developed and emerging markets, irrespective of their market capitalization.
Keith E White has been the lead manager of VGPMX since Jul 27, 2018. Most of the fund’s holdings were in companies like Barrick Gold (8.67%), American Electric (7.49%), and Intact Financial (6.32%) as of Oct 31, 2022.
VGPMX’s 3-year and 5-year annualized returns are 20.2% and 6.8%, respectively. Its net expense ratio is 0.42% compared with the category average of 1.07%. VGPMX has a Zacks Mutual Fund Rank #1.
To see how this fund performed compared in its category, and other 1 and 2 Ranked Mutual Funds,
please click here. Vanguard Windsor Fund ( VWNDX Quick Quote VWNDX - Free Report) invests most of its net assets in large and mid-capitalization companies whose stocks are undervalued. VWNDX advisors consider undervalued stocks as those that are out of favor with investors and are trading at prices that are 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 holdings were in companies like Halliburton (2.30%), Wabtec (2.15%), and Metlife (2.14%) as of Oct 31, 2022.
VWNDX’s 3-year and 5-year annualized returns are 16.6% and 9.5%, respectively. Its net expense ratio is 0.38% compared with the category average of 0.94%. VWNDX has a Zacks Mutual Fund Rank #1.
Vanguard Strategic Small-Cap Equity Fund Investor Shares ( VSTCX Quick Quote VSTCX - Free Report) invests most of its net assets in equity securities of domestic small-capitalization companies, which according to its advisors offer an appropriate balance between strong growth prospects and reasonable valuations relative to their industry peers. VSTCX advisors use quantitative processes to evaluate the securities to the benchmark, the MSCI US Small Cap 1750 Index, while maintaining a risk profile similar to that of the index.
Cesar Orosco has been the lead manager of VSTCX since Feb 26, 2021. Most of the fund’s holdings were in companies like Manhattan Associates (0.88%), Jabil (0.84%), and Clean Harbors (0.79%) as of Sep 30, 2022.
VSTCX’s 3-year and 5-year annualized returns are 16.2% and 8.3%, respectively. Its net expense ratio is 0.26% compared to the category average of 1.03%. VSTCX has a Zacks Mutual Fund Rank #1.
Vanguard Whitehall Funds, Selected Value Fund ( VASVX Quick Quote VASVX - Free Report) invests most of its net assets in medium-capitalized domestic companies, which according to its advisor are undervalued and have above-average dividend yields. VASVX advisors choose to invest in stocks that are out of favor with investors and are trading at prices, which are below average in relation to its earnings and book value.
Richard Lawrence Greenberg has been the lead manager of VASVX since Feb 25, 2005, and most of the fund’s holdings were in companies like Aercap Holdings (3.39%), Unum Group (2.04%), and Gildan Activewear (1.88%) as of Oct 31, 2022.
VASVX’s 3-year and 5-year annualized returns are 16.2% and 7.8%, respectively. Its net expense ratio is 0.38% compared with the category average of 1.01%. VASVX has a Zacks Mutual Fund Rank #1.
Vanguard Growth and Income Fund ( VQNPX Quick Quote VQNPX - Free Report) invest 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 in 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 Sep 30, 2011. Most of the fund’s holdings were in companies like Apple (6.53%), Microsoft (6.03%), and Amazon.com (2.64%) as of Sep 30, 2022.
VQNPX’s 3-year and 5-year annualized returns are 12.8% and 9.7%, respectively. Its net expense ratio is 0.32% compared with the category average of 0.84%. VQNPX has a Zacks Mutual Fund Rank #1.
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 >>