There’s no big secret behind the success of Vanguard funds — investor assets flock to Vanguard thanks to the company’s dedication to straightforward investing and low-cost products.
Vanguard Total Stock Market Index (VTSMX) recently became the largest mutual fund in the world — helped in large part by a rotation out of bonds and into stocks over the past few months. However, you can bet investors were drawn to the Vanguard fund over other products thanks to its bare-bones 0.17% expense ratio, too.
The simple truth is that most mutual fund companies exist to make a profit for themselves as well as investors. However, Vanguard’s structure is unique and allows it to basically offer its products at a price that reflects the cost of doing business — without showing a profit.
Investors benefit as all mutual funds are offered as no-load products, with no marketing or distribution fees charged to investors, and the funds in general tend to have low overall expense ratios.
But low cost isn’t all that Vanguard funds have going for them — Vanguard provides quality, too. Here, we look at some of the most compelling offerings of this industry giant: