Vanguard Equity Income Fund
Morningstar Rating: 5 stars
Minimum investment: $3,000
Performance Summary: Vanguard’s Equity Income Fund is just edging out the S&P 500’s 18.5% returns year-to-date, but is slightly behind the S&P’s 20.6% gains by a few basis points. However, over three, five and 10 years, VEIPX beat the broader mark by anywhere from 1.4 to 1.8 percentage points.
Notes: This large-cap value fund has roughly 85% of its portfolio invested in U.S. stocks, about 10% in foreign equities and the rest in cash. Top holdings include Exxon Mobil (XOM), Johnson & Johnson (JNJ) and Chevron (CVX).