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4 Top Vanguard Mutual Funds to Buy for 2024 & Beyond

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Headquartered in Vally Forge, PN, Vanguard was founded by John C. Bogle on May 1, 1975. With $8.2 trillion in assets under management globally till Jul 31, 2023, the company is one of the world's largest investment management firms. Vanguard had more than 20,000 employees worldwide and offered 206 funds in the United States and 216 in foreign markets to 50 million investors as of Dec 31, 2023.

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.

The Federal Reserve, in its last meeting, kept the overnight interest rate unchanged in the 5.25-5.50% range. Such a decision by the Fed suggests that probably the central bank is done raising the interest rate but wants it to remain higher for longer to achieve its 2% inflation target. Investors, however, expected a rate cut as it is weighing in corporate profitability, causing volatility in stock markets.

In such a situation, mutual fund investing can be a preferred choice for 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 four Vanguard mutual funds that have wide exposure in sectors like energy, utilities, finance, industrial cyclical, technology and consumer durablessince they have given a positive return and are expected to perform well in the near future.

These funds boast a Zacks Mutual Fund Rank #1 (Strong Buy), have positive year-to-date, 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 Energy (VGENX - Free Report) fund invests most of its net assets in common stocks. VGENX advisors generally invest in companies that are principally engaged in the energy industry, like exploration, production, and transmission of energy or fuels, manufacturing and servicing of products required for energy research, energy conservation and pollution control.

G. Thomas Levering has been the lead manager of VGENX since Jan 15, 2020. Most of the fund’s exposure was in companies like Shell PLC (9.2%), ConocoPhillips (7.1%) and BP (6.7%) as of Jul 31, 2023.

VGENX’s three-year and five-year annualized returns of almost 19.8% and 6.1%, respectively. VGENX has an annual expense ratio of 0.44%, which is less than the category average of 1.07%.

To see how this fund performed compared to its category and other 1, 2 and 3 Ranked Mutual Funds, please click here.

Vanguard Selected Value (VASVX - Free Report) fund 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. Most of the fund’s exposure was in companies like AerCap (3.4%), TE Connectivity (1.8%) and Global Life (1.7%) as of Jul 31, 2023.

VASVX’s three-year and five-year annualized returns of almost 14.0% and 15.2%, respectively. VASVX has an annual expense ratio of 0.43%, which is less than the category average of 1.01%.

Vanguard Windsor Investor Shares (VWNDX - Free Report) fund 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 (2.2%), Pfizer (2.1%) and Alphabet (2.0%) as of Jul 31, 2023.

VWNDX’s three-year and five-year annualized returns of almost 12.5% and 14.8%, respectively. VWNDX has an annual expense ratio of 0.42% compared to the category average of 0.94%.

Vanguard Strategic Equity (VSEQX - Free Report) fund invests most of its net assets in small-cap U.S. companies, which, according to the advisor have right balance between strong growth prospects and reasonable valuations relative to their industry peers. VSEQX advisors use quantitative techniques to evaluate all of the securities using MSCI US Small Cap 1750 Index as benchmark index, with a risk profile similar to that of the index.

Cesar Orosco has been the lead manager of VSEQX since Feb 25, 2021. Most of the fund’s exposure is in companies like Halliburton (0.8%), Textron (0.8%) and Manhattan Associates (0.8%) as of Sep 30, 2023.

VSEQX’s three-year and five-year annualized returns of almost 11.2% and 14.0%, respectively. VSEQX has an annual expense ratio of 0.17% compared to the category average of 0.94%.

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