The U.S. economy continued to show resilience despite heightened geopolitical tensions and market volatility. The labor market remained a clear bright spot, with initial jobless claims declining by 22,000 to 187,000, the lowest level of new unemployment benefit applications since 1969. In contrast, continuing claims eased to 1.796 million, highlighting ongoing strength in employment. June durable goods orders rose just 0.3%, missing expectations. But core business investment stayed healthy. Shipments posted their strongest gain since 2021, pointing to steady underlying demand.

However, rising tensions in the Strait of Hormuz briefly pushed WTI crude above $91 per barrel and Brent to near $100, fueling market volatility before prices cooled. Meanwhile, the Federal Reserve kept rates at 3.50-3.75%, signaling a cautious, data-driven stance, as policymakers balanced resilient growth against lingering inflation and global uncertainty. Overall, the economy continues to expand steadily, supported by a strong labor market, even as geopolitical risks and inflation keep policymakers and investors on alert.

In such a market situation, mutual fund investing can help those who wish to diversify their portfolio among various asset classes. Investors who lack professional expertise in managing funds can choose to invest in Vanguard mutual funds, such as Vanguard Primecap Fund (VPMCX Quick QuoteVPMCX - Free Report) , Vanguard Growth and Income Fund (VQNPX Quick QuoteVQNPX - Free Report) and Vanguard Specialized Portfolios Energy Fund (VGENX Quick QuoteVGENX - Free Report) , as they provide low-cost, uncomplicated equity, fixed-income and multi-asset funds that can help investors meet their goals.

These funds have wide exposure in sectors such as industrial cyclical, technology, retail trade, non-durable and energy since they have given positive returns and are expected to perform well in the near future.

Why Invest in Vanguard Mutual Funds?

Vanguard, one of the world’s largest asset management corporations, was founded by John C. Bogle on May 1, 1975. Headquartered in Valley Forge, PN, the company had $12 trillion in assets under management globally as of Dec. 31, 2025. Vanguard had more than 20,000 employees worldwide as of Feb. 28, 2026, and offered 228 funds in the United States and 237 in foreign markets to millions of investors.

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.

These funds boast a Zacks Mutual Fund Rank #1 (Strong Buy), have positive three-year and five-year annualized returns, minimum initial investments within $5000, and carry an expense ratio of less than 1%. 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 Primecap Fund invests most of its net assets predominantly in large- and mid-capitalization stocks. VPMCX advisors prefer to invest in stocks that have above-average earnings growth potential, which is not reflected in their current market prices.

Joel P. Fried has been the lead manager of VPMCX since Dec. 31, 1988. Most of the fund’s exposure is in companies like Eli Lilly (6.9%), Micron Technology (6%) and Alphabet (3.8%) as of March 31, 2026.

VPMCX’s three-year and five-year annualized returns are 28.2% and 16.7%, respectively. VPMCX has an annual expense ratio of 0.35%.

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

Vanguard Growth and Income Fund invests 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 with investment characteristics, such as those of companies listed on the S&P 500 Index, but are expected to provide a higher total return than that of the index.

Ann M. Holcomb has been the lead manager of VQNPX since June 30, 2026. Most of the fund’s holdings were in companies, such as NVIDIA (6.4%), Apple (5.5%) and Microsoft (3.8%) as of March 31, 2026.

VQNPX’s three-year and five-year annualized returns are 21.1% and 13.6%, respectively. VQNPX has an annual expense ratio of 0.39%.

Vanguard Specialized Portfolios Energy Fund invests most of its net assets in common stocks. VGENX advisors generally invest in companies principally engaged in the energy industry, such as exploration, production and transmission of energy or fuels, as well as the 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 Exxon Mobil (9.1%), Shell PLC (8.7%) and TotalEnergies (6.3%) as of Jan. 31, 2026.

VGENX’s three-year and five-year annualized returns are 18.8% and 17.8%, respectively. VGENX has an annual expense ratio of 0.45%.

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