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3 Best-Performing Vanguard Mutual Funds to Buy for 2H 2026
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As we navigate uncertain markets, and changing interest rates and global economic environments, investing in high-quality, long-term-performing mutual funds has become very important. Vanguard is one of the largest mutual fund providers, with over $12 trillion in assets under management (AUM). The majority of Vanguard funds are offered in an actively managed format as well as an index tracking style, and are spread across various asset classes. Vanguard mutual funds have low expense ratios, well-diversified portfolios and time-tested investment strategies that have consistently delivered strong results in various market environments.
The following three Vanguard mutual funds have done well this year so far, have strong one-year returns, and are set to do well in the second half of 2026: They are: Vanguard Global Capital Cycles Investor (VGPMX - Free Report) , Vanguard Capital Opportunity Inv (VHCOX - Free Report) and Vanguard Strategic Small-Cap Equity Fund (VSTCX - Free Report) . These funds have a Zacks Mutual Fund Rank #1 (Strong Buy), positive one- year, three-year, and five-year annualized returns, minimum initial investments within $5000 and expense ratios considerably lower than the category average. So, these funds have provided a comparatively stronger performance and carry a lower fee.
Vanguard Global Capital Cycles Investor fund seeks long-term capital appreciation. VGPMX invests in stocks of U.S. and foreign companies engaged in exploring, mining, processing, or marketing gold, silver, platinum, diamonds, precious metals and other rare minerals.
Keith E. White has been the lead manager of VGPMX since July 27, 2018. Most of the fund's holdings were in companies like Barrick Mining Corp. (5.9%), Anglo American plc (4.2%) and Samsung Electronics Co., Ltd. (3.5%) as of Jan. 31, 2026.
VGPMX has gained 18% on a year-to-date (YTD) basis. The fund has also returned 65% over the past year, reflecting strong gains in precious metals and mining stocks as demand for precious metals and critical minerals remained robust.
VGPMX's 3-year and 5-year annualized returns are 31.9% and 20.1%, respectively. Its diversified portfolio of global resource companies positions it well to benefit from favorable trends in the natural resources sector. VGPMX net expense ratio is 0.42%. VGPMX carries 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 Capital Opportunity Inv fund seeks maximum long-term total return. VHCOX invests primarily in stocks of mid- and small-capitalization companies expected to have above-average earnings growth.
Theo A. Kolokotrones has been the lead manager of VHCOX since Feb. 1, 1998. Most of the fund’s holdings were in companies like Eli Lilly and Co (7.4%), Micron Technology, Inc. (5%) and Flex Ltd. (2.7%) as of Dec. 31, 2025.
VHCOX has gained 24% YTD. The fund has also returned 56.1% over the past year, driven by strong performance from growth-oriented holdings in the semiconductor, healthcare and technology sectors.
VHCOX’s 3-year and 5-year annualized returns are 27.6% and 14.5%, respectively. VHCOX has a net expense ratio of 0.42%. VHCOX carries a Zacks Mutual Fund Rank of #1.
Vanguard Strategic Small-Cap Equity Fund invests most of its assets, along with borrowings, if any, in equity securities of small-cap U.S. companies.
Cesar Orosco has been the lead manager of VSTCX since Feb. 26, 2021. Most of the fund’s exposure was in companies like Enova International, Inc. (0.7%), EnerSys (0.7%) and Brixmor Property Group (0.7%) as of Dec. 31, 2025.
VSTCX has gained 17% YTD. The fund has also returned 43.1% over the past year. The fund is focused on the small-cap sectors and offers a number of different sector exposures, including financials, technology, and industrials.
VSTCX's 3-year and 5-year annualized returns are 24.1% and 12%, respectively. Its diversified portfolio of small-cap companies across multiple sectors positions the fund well to capitalize on long-term growth opportunities. VSTCX has a net expense ratio of 0.23%. VSTCX carries a Zacks Mutual Fund Rank of #1.
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3 Best-Performing Vanguard Mutual Funds to Buy for 2H 2026
As we navigate uncertain markets, and changing interest rates and global economic environments, investing in high-quality, long-term-performing mutual funds has become very important. Vanguard is one of the largest mutual fund providers, with over $12 trillion in assets under management (AUM). The majority of Vanguard funds are offered in an actively managed format as well as an index tracking style, and are spread across various asset classes. Vanguard mutual funds have low expense ratios, well-diversified portfolios and time-tested investment strategies that have consistently delivered strong results in various market environments.
The following three Vanguard mutual funds have done well this year so far, have strong one-year returns, and are set to do well in the second half of 2026: They are: Vanguard Global Capital Cycles Investor (VGPMX - Free Report) , Vanguard Capital Opportunity Inv (VHCOX - Free Report) and Vanguard Strategic Small-Cap Equity Fund (VSTCX - Free Report) . These funds have a Zacks Mutual Fund Rank #1 (Strong Buy), positive one- year, three-year, and five-year annualized returns, minimum initial investments within $5000 and expense ratios considerably lower than the category average. So, these funds have provided a comparatively stronger performance and carry a lower fee.
Vanguard Global Capital Cycles Investor fund seeks long-term capital appreciation. VGPMX invests in stocks of U.S. and foreign companies engaged in exploring, mining, processing, or marketing gold, silver, platinum, diamonds, precious metals and other rare minerals.
Keith E. White has been the lead manager of VGPMX since July 27, 2018. Most of the fund's holdings were in companies like Barrick Mining Corp. (5.9%), Anglo American plc (4.2%) and Samsung Electronics Co., Ltd. (3.5%) as of Jan. 31, 2026.
VGPMX has gained 18% on a year-to-date (YTD) basis. The fund has also returned 65% over the past year, reflecting strong gains in precious metals and mining stocks as demand for precious metals and critical minerals remained robust.
VGPMX's 3-year and 5-year annualized returns are 31.9% and 20.1%, respectively. Its diversified portfolio of global resource companies positions it well to benefit from favorable trends in the natural resources sector. VGPMX net expense ratio is 0.42%. VGPMX carries 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 Capital Opportunity Inv fund seeks maximum long-term total return. VHCOX invests primarily in stocks of mid- and small-capitalization companies expected to have above-average earnings growth.
Theo A. Kolokotrones has been the lead manager of VHCOX since Feb. 1, 1998. Most of the fund’s holdings were in companies like Eli Lilly and Co (7.4%), Micron Technology, Inc. (5%) and Flex Ltd. (2.7%) as of Dec. 31, 2025.
VHCOX has gained 24% YTD. The fund has also returned 56.1% over the past year, driven by strong performance from growth-oriented holdings in the semiconductor, healthcare and technology sectors.
VHCOX’s 3-year and 5-year annualized returns are 27.6% and 14.5%, respectively. VHCOX has a net expense ratio of 0.42%. VHCOX carries a Zacks Mutual Fund Rank of #1.
Vanguard Strategic Small-Cap Equity Fund invests most of its assets, along with borrowings, if any, in equity securities of small-cap U.S. companies.
Cesar Orosco has been the lead manager of VSTCX since Feb. 26, 2021. Most of the fund’s exposure was in companies like Enova International, Inc. (0.7%), EnerSys (0.7%) and Brixmor Property Group (0.7%) as of Dec. 31, 2025.
VSTCX has gained 17% YTD. The fund has also returned 43.1% over the past year. The fund is focused on the small-cap sectors and offers a number of different sector exposures, including financials, technology, and industrials.
VSTCX's 3-year and 5-year annualized returns are 24.1% and 12%, respectively. Its diversified portfolio of small-cap companies across multiple sectors positions the fund well to capitalize on long-term growth opportunities. VSTCX has a net expense ratio of 0.23%. VSTCX carries a Zacks Mutual Fund Rank of #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 >>