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5 Best Performing Vanguard Mutual Funds of 2019 So Far

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Vanguard is one of the world’s largest asset management corporations. It offers nearly 190 domestic funds and 220 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 themselves, which helps its management focus better on shareholder interests. Among other advantages, it claims to offer low-cost, no-load funds. Let’s find out how the fund house has performed so far this year.

Vanguard’s Best Performing Fund in the First Half

By the end of the first half of this year, Vanguard had around $4.4 trillion of assets under management. The initial investment of the majority of mutual funds from the family ranges from $0 to $3,000. As of Jun 30, 2019, none of the Vanguard mutual funds carried any load.

Further, Vanguard Massachusetts Tax-Exempt Fund Investor Shares (VMATX - Free Report) turned up as one of the best-performing mutual funds from the Vanguard family. The fund posted solid gains so far this year. VMATX that invest a bulk of its assets in high-quality municipal bonds issued by Massachusetts state and local governments returned 6% so far this year.

Factors Which Boosted Vanguard’s Growth

Vanguard invests in a variety of sectors that are sensitive, cyclical and defensive. From the sensitive sectors, most investments were made in the technology sector. Among the cyclical sectors, the fund family mostly invested in the financial services sector, while among defensive sectors it invested heavily in healthcare.

Technology Select Sector SPDR (XLK) has surged almost 30% so far in 2019 and has been the best-performing sector among the 11 S&P 500 sectors. Also, as of Jul 3, 2019, technology mutual funds collectively delivered impressive returns of 25.9% in the year-to-date period, according to Morningstar. The financial and healthcare mutual funds too registered year-to-date returns of 18.7% and 15.3%, respectively.

5 Best Funds to Buy Now

Given such bullish circumstances, we have highlighted four Vanguard mutual funds carrying a Zacks Mutual Fund Rank #1 (Strong Buy) and are poised to gain from such factors. Moreover, these funds have encouraging one year and year-to-date (YTD) returns. Additionally, the minimum initial investment is within $5000. We expect these funds to outperform their peers in the future.

The question here is: why should investors consider mutual funds? Reduced transaction costs and diversification of portfolio without several commission charges that are associated with stock purchases are primarily why one should be parking money in mutual funds (read more: Mutual Funds: Advantages, Disadvantages, and How They Make Investors Money).

Vanguard Long-Term Investment-Grade Investor (VWESX - Free Report)  fund seeks appreciation of income and invests the majority of its assets in intermediate- and long-term investment-grade securities. The fund's dollar-weighted average maturity is believed to vary by 5 years around the maturity period of its benchmark index.

This Sector – Inv Grade Bond-Long product has a history of positive total returns for over 10 years. Specifically, the fund's returns over the one year and YTD benchmarks are 14.7% and 14%, respectively. To see how this fund performed compared to its category, and other #1 and 2 Ranked Mutual Funds, please click here.

VWESX has an annual expense ratio of 0.22%, which is below the category average of 0.69%.

Vanguard International Growth Investor (VWIGX - Free Report) fund seeks capital growth by investing in stocks of companies located outside the United States. These companies are expected to diversify their assets in countries across developed and emerging markets.

This Sector – Non US-Equity product has a history of positive total returns for over 10 years. Specifically, the fund's returns over the YTD benchmarks is 18.6%. To see how this fund performed compared to its category, and other #1 and 2 Ranked Mutual Funds, please click here.

VWIGX has an annual expense ratio of 0.45%, which is below the category average of 1.11%.

Vanguard LifeStrategy Growth Investor (VASGX - Free Report) fund invests in other Vanguard mutual funds with asset allocation of nearly 80% in equity securities and about 20% in debt securities and bonds. VASGX seeks appreciation of income and capital for the long run.

This Sector – Allocation Balanced product has a history of positive total returns for over 10 years. Specifically, the fund's returns over the one year and YTD benchmarks are 6.1% and 14.4%, respectively. To see how this fund performed compared to its category, and other #1 and 2 Ranked Mutual Funds, please click here.

VASGX has an annual expense ratio of 0.14%, which is below the category average of 0.75%.

Vanguard Emerging Markets Select Stock Investor Fund Investor (VMMSX - Free Report) invests mainly in equity securities of companies located in emerging markets. It invests in small-, mid-, and large-capitalization companies and is expected to diversify its assets among companies in emerging markets.

This Sector – Non US-Equity product has a history of positive total returns for over 10 years. Specifically, the fund's returns over the one year and YTD benchmarks are 6.2% and 13%, respectively. To see how this fund performed compared to its category, and other #1 and 2 Ranked Mutual Funds, please click here.

VMMSX has an annual expense ratio of 0.94%, which is below the category average of 1.35%.

Vanguard Short-Term Investment-Grade Investor (VFSTX - Free Report) fund seeks income while maintaining a high degree of stability of principal. VFSTX invests in a variety of high-quality and, to a lesser extent, medium-quality fixed income securities. The fund also invests to a limited extent in non-investment-grade and fixed income securities, mainly short-term and intermediate-term corporate bonds.

This Sector – Inv Grade Bond-Short product has a history of positive total returns for over 10 years. Specifically, the fund's returns over the one year and YTD benchmarks are 5.4% and 4.1%, respectively. To see how this fund performed compared to its category, and other #1 and 2 Ranked Mutual Funds, please click here.

VFSTX has an annual expense ratio of 0.20%, which is below the category average of 0.75%.

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