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4 Top Vanguard Large-Cap Growth Mutual Funds to Buy Now
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The Obama-Trump bull market on Wall Street is the second-longest in history, spanning more than eight years. In fact, the broader market performed exceptionally well since Donald Trump was elected as the President driven by expectations of tax reforms and deregulation. The post-election rally was also supported by steady economic recovery and corporate earnings.
Wall Street, in the meanwhile, breathed a sigh of relief after hurricane Irma changed its course and eased fears of widespread devastation in Florida. Investors were also relieved as tensions between the United States and North Korea didn't escalate following a national holiday in the rogue nation (read more: Obama-Trump Bull Run is the Second Best Ever: Top 5 Gainers).
Banking on such bullish trends, the equity market is poised to gain traction in the long term. Thus, investing in Vanguard Large-Cap Growth mutual funds seems to be judicious. Investors can click here to see the complete list of Vanguard funds, their Zacks Rank and past performance.
Why Invest in Vanguard Large-Cap Growth Mutual Funds?
Funds having significant exposure to growth securities are believed to provide higher returns. This is because growth stocks are high quality stocks with the potential for revenue and earnings growth at a rate faster than the industry average.
Large-cap growth mutual funds, in the meanwhile, provide excellent opportunities to investors who choose long-term capital appreciation and steady returns over dividend payouts. Large-cap funds are ideal for investors seeking high returns that come with lower risk than small-cap and mid-cap funds.
But, why Vanguard? This is because some of the oldest and best large-cap growth mutual funds belong to this prestigious fund house. Apart from being one of the leading investment management companies in the world, Vanguard is also popular among investors for its low-cost funds. The company offers nearly 300 low-cost funds, which attract a significant portion of investor assets (read more: Vanguard vs Fidelity: Fee War Heats Up).
Vanguard is also distinctively different from the other mutual fund companies because it is owned by the funds. The company believes that this structure helps management focus better on shareholder interests. Typical investment management companies are owned by outside stockholders. These companies have to charge fees to pay their owners, which can dent investors’ returns.
And, why mutual funds rather than stocks? Reduced transaction costs and diversification of portfolios without the several commission charges that are associated with stock purchases are the primary reasons why investors should park their money in mutual funds (read more: Mutual Funds: Advantages, Disadvantages, and How They Make Investors Money).
4 Solid Choices
We have, thus, suggested four Vanguard Large-Cap Growth mutual funds for enticing returns in the long run, while they are also low cost.
Incepted in December 1968,Vanguard Morgan Growth Investor , with a Zacks Mutual Fund Rank #1 (Strong Buy), seeks long-term growth of capital. VMRGX invests mainly in the stocks of large U.S. companies whose revenues or earnings are expected to grow faster than those of the average company in the market. The fund distributes dividends and capital gains in December.
Moreover, VMRGX requires a minimal initial investment of $3,000. VMRGX has three-month and YTD returns of 11.8% and nearly 22%, respectively. VMRGX’s performance, as of the last filing, when compared to funds in its category was in the top 18.9% in a year, top 12.3% over the past three years, and in the 15.5% over the past five years.
Incepted in November 1992,Vanguard Growth Index Investor (VIGRX - Free Report) , with a Zacks Mutual Fund Rank #1, seeks long-term growth of capital. VIGRX holds all of the stocks in the unmanaged Standard and Poor's Growth Index in approximately the same proportions as those stocks represent in the index. The fund distributes dividends quarterly in March, June, September and December. Capital gains are distributed annually in December.
The Vanguard Growth Index Investor fund, managed by Vanguard Group, carries an expense ratio of 0.18%, way lower than the category average of 1.13%.
Furthermore, VIGRX requires a minimal initial investment of $3,000. VIGRX has three-month and YTD returns of 4% and 20.2%, respectively. VIGRX’s performance, as of the last filing, when compared to funds in its category was in the top 17.4% in a year, top 11.5% over the past three years, and in the 14.9% over the past five years.
Incepted in November 1984,Vanguard PRIMECAP Investor (VPMCX - Free Report) , with a Zacks Mutual Fund Rank #2 (Buy), seeks long-term capital appreciation. VPMCX invests in stocks considered to have above-average earnings growth and its portfolio consists predominantly of large capitalization stocks. Dividends and capital gains, if any, are distributed annually in December.
The Vanguard PRIMECAP Investor fund, managed by Vanguard Group, carries an expense ratio of 0.39%, way lower than the category average of 1.13%.
Additionally, VPMCX requires a minimal initial investment of $3,000. VPMCX has three-month and YTD returns of 3.4% and 18.4%, respectively. VPMCX’s performance, as of the last filing, when compared to funds in its category was in the top 17.7% in a year, top 9.6% over the past three years, and in the 16.1% over the past five years.
Incepted in January 1959,Vanguard US Growth Investor (VWUSX - Free Report) , with a Zacks Mutual Fund Rank #2, seeks to provide long-term capital appreciation. VWUSX invests mainly in large-capitalization stocks of U.S. companies considered to have above-average earnings growth potential and reasonable stock prices in comparison with expected earnings. The fund distributes dividends and capital gains in December.
The Vanguard US Growth Investor fund, managed by Vanguard Group, carries an expense ratio of 0.46%, lower than the category average of 1.13%.
Moreover, VWUSX requires a minimal initial investment of $3,000. VWUSX has three-month and YTD returns of 6.2% and 23.6%, respectively. VWUSX’s performance, as of the last filing, when compared to funds in its category was in the top 15.9% in a year, top 12% over the past three years, and in the 16.1% over the past five years.
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4 Top Vanguard Large-Cap Growth Mutual Funds to Buy Now
The Obama-Trump bull market on Wall Street is the second-longest in history, spanning more than eight years. In fact, the broader market performed exceptionally well since Donald Trump was elected as the President driven by expectations of tax reforms and deregulation. The post-election rally was also supported by steady economic recovery and corporate earnings.
Wall Street, in the meanwhile, breathed a sigh of relief after hurricane Irma changed its course and eased fears of widespread devastation in Florida. Investors were also relieved as tensions between the United States and North Korea didn't escalate following a national holiday in the rogue nation (read more: Obama-Trump Bull Run is the Second Best Ever: Top 5 Gainers).
Banking on such bullish trends, the equity market is poised to gain traction in the long term. Thus, investing in Vanguard Large-Cap Growth mutual funds seems to be judicious. Investors can click here to see the complete list of Vanguard funds, their Zacks Rank and past performance.
Why Invest in Vanguard Large-Cap Growth Mutual Funds?
Funds having significant exposure to growth securities are believed to provide higher returns. This is because growth stocks are high quality stocks with the potential for revenue and earnings growth at a rate faster than the industry average.
Large-cap growth mutual funds, in the meanwhile, provide excellent opportunities to investors who choose long-term capital appreciation and steady returns over dividend payouts. Large-cap funds are ideal for investors seeking high returns that come with lower risk than small-cap and mid-cap funds.
But, why Vanguard? This is because some of the oldest and best large-cap growth mutual funds belong to this prestigious fund house. Apart from being one of the leading investment management companies in the world, Vanguard is also popular among investors for its low-cost funds. The company offers nearly 300 low-cost funds, which attract a significant portion of investor assets (read more: Vanguard vs Fidelity: Fee War Heats Up).
Vanguard is also distinctively different from the other mutual fund companies because it is owned by the funds. The company believes that this structure helps management focus better on shareholder interests. Typical investment management companies are owned by outside stockholders. These companies have to charge fees to pay their owners, which can dent investors’ returns.
And, why mutual funds rather than stocks? Reduced transaction costs and diversification of portfolios without the several commission charges that are associated with stock purchases are the primary reasons why investors should park their money in mutual funds (read more: Mutual Funds: Advantages, Disadvantages, and How They Make Investors Money).
4 Solid Choices
We have, thus, suggested four Vanguard Large-Cap Growth mutual funds for enticing returns in the long run, while they are also low cost.
Incepted in December 1968,Vanguard Morgan Growth Investor , with a Zacks Mutual Fund Rank #1 (Strong Buy), seeks long-term growth of capital. VMRGX invests mainly in the stocks of large U.S. companies whose revenues or earnings are expected to grow faster than those of the average company in the market. The fund distributes dividends and capital gains in December.
The Vanguard Morgan Growth Investor fund, managed by Vanguard Group, carries an expense ratio of 0.38%, way lower than the category average of 1.13% (read more: Mutual Fund Pitfalls, Mind the Expense Ratio).
Moreover, VMRGX requires a minimal initial investment of $3,000. VMRGX has three-month and YTD returns of 11.8% and nearly 22%, respectively. VMRGX’s performance, as of the last filing, when compared to funds in its category was in the top 18.9% in a year, top 12.3% over the past three years, and in the 15.5% over the past five years.
Incepted in November 1992,Vanguard Growth Index Investor (VIGRX - Free Report) , with a Zacks Mutual Fund Rank #1, seeks long-term growth of capital. VIGRX holds all of the stocks in the unmanaged Standard and Poor's Growth Index in approximately the same proportions as those stocks represent in the index. The fund distributes dividends quarterly in March, June, September and December. Capital gains are distributed annually in December.
The Vanguard Growth Index Investor fund, managed by Vanguard Group, carries an expense ratio of 0.18%, way lower than the category average of 1.13%.
Furthermore, VIGRX requires a minimal initial investment of $3,000. VIGRX has three-month and YTD returns of 4% and 20.2%, respectively. VIGRX’s performance, as of the last filing, when compared to funds in its category was in the top 17.4% in a year, top 11.5% over the past three years, and in the 14.9% over the past five years.
Incepted in November 1984,Vanguard PRIMECAP Investor (VPMCX - Free Report) , with a Zacks Mutual Fund Rank #2 (Buy), seeks long-term capital appreciation. VPMCX invests in stocks considered to have above-average earnings growth and its portfolio consists predominantly of large capitalization stocks. Dividends and capital gains, if any, are distributed annually in December.
The Vanguard PRIMECAP Investor fund, managed by Vanguard Group, carries an expense ratio of 0.39%, way lower than the category average of 1.13%.
Additionally, VPMCX requires a minimal initial investment of $3,000. VPMCX has three-month and YTD returns of 3.4% and 18.4%, respectively. VPMCX’s performance, as of the last filing, when compared to funds in its category was in the top 17.7% in a year, top 9.6% over the past three years, and in the 16.1% over the past five years.
Incepted in January 1959,Vanguard US Growth Investor (VWUSX - Free Report) , with a Zacks Mutual Fund Rank #2, seeks to provide long-term capital appreciation. VWUSX invests mainly in large-capitalization stocks of U.S. companies considered to have above-average earnings growth potential and reasonable stock prices in comparison with expected earnings. The fund distributes dividends and capital gains in December.
The Vanguard US Growth Investor fund, managed by Vanguard Group, carries an expense ratio of 0.46%, lower than the category average of 1.13%.
Moreover, VWUSX requires a minimal initial investment of $3,000. VWUSX has three-month and YTD returns of 6.2% and 23.6%, respectively. VWUSX’s performance, as of the last filing, when compared to funds in its category was in the top 15.9% in a year, top 12% over the past three years, and in the 16.1% over the past five years.
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 >>