Vanguard is one of the world’s largest asset management corporations, with more than $3 trillion in global assets under management. It offers nearly 175 domestic funds and 145 funds for foreign markets. It offers asset management and financial planning services to clients across the world.
Unlike other mutual fund companies, Vanguard is owned by the funds itselves, 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 four 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 Ohio Long-Term Tax-Exempt (VOHIX - MF 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 6.8%.
Marlin G. Brown is the fund manager of VOHIX since 2008.
Vanguard Balanced Index I (VBAIX - MF report) employs an indexing investment approach. With around 60% of its assets, VBAIX seeks to track the performance of the CRSP U.S. Total Market Index. With the remaining part of its assets, VBAIX seeks to track the investment performance of the Barclays U.S. Aggregate Float Adjusted Index. Vanguard Balanced Index I has a three-year annualized return of 7.9%.
As of August 2016, VBAIX held 12,209 issues with 1.43% of its assets invested in Apple Inc.
Vanguard Mid Cap Growth Investor (VMGRX - MF report) seeks long-term capital growth. VMGRX invests a large chunk of its assets in the securities of mid-cap companies. The fund primarily emphasizes acquiring common stocks of companies that have above-average growth potential. Vanguard Mid Cap Growth Investor has a three-year annualized return of 10.6%.
VMGRX has an expense ratio of 0.4% as compared to the category average of 1.21%.
Vanguard Growth & Income Investor (VQNPX - MF 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 11.4%.
As of June 2016, VQNPX held 1063 issues with 2.39% of its assets invested in Apple Inc.
To view the Zacks Rank and past performance of all Vanguard mutual funds, investors can click here to see the complete list of funds.
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