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3 No-Load Vanguard Mutual Funds Amid Volatile Market Conditions

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Vanguard 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 was founded in 1975 by John C. Bogle and is headquartered in Vally Forge, PA.

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.

The S&P 500 and the Nasdaq have posted positive returns of 8.12% and 21.32%, respectively, and the Dow has reported a negative return of 1.15% so far this year. The debate in Congress over the increase in the debt ceiling to prevent the country from going into a possible default, the collapse of important regional banks and still higher-than-expected inflation are major concerns for investors.

Amid such a gloomy scenario, we have thus selected three 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 most of their investments in sectors like finance, technology, industrial cycle, consumer durables and retail trade.

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 have lower fees.

Vanguard Global Capital Cycles Fund Investor Shares (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 (10.31%), American Electric (6.64%) and BWX Technologies (4.81%) as of Jan 31, 2023.

VGPMX’s 3-year and 5-year annualized returns are 23.6% and 7.0%, respectively. Its net expense ratio is 0.43% compared with the category average of 1.07%. VGPMX has a Zacks Mutual Fund Rank #1.

To see how this fund performed compared to its category, and other 1 and 2 Ranked Mutual Funds, please click here.

Vanguard Whitehall Funds, Selected Value Fund (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 (3.48%), Arrow Electronics (1.77%), and Gildan Activewear (1.71%) as of Jan 31, 2023.

VASVX’s 3-year and 5-year annualized returns are 22.4% and 7.7%, 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 - 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 (5.73%), Microsoft (5.68%), and Amazon.com (1.91%) as of Dec 31, 2022.

VQNPX’s 3-year and 5-year annualized returns are 14.6% and 10.8%, respectively. Its net expense ratio is 0.32% compared with the category average of 0.84%. VQNPX has a Zacks Mutual Fund Rank #1.

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