Vanguard Selected Value (VASVX)
Vanguard Selected Value (VASVX) is dedicated to finding undervalued companies in the midcap space that have upside potential over time. Vanguard uses two managers on this fund, and with fine results. Barrow, Hanley, Mewhinney & Strauss LLC manage the bulk of assets with the firm of Donald Smith & Co. Inc. also contributing to the team.
The combination has led VASVX to 37% returns this year, and over the past 10 years, this $7 billion Vanguard fund has gained an annualized a little more than 11%, placing it in the top 6% of its Morningstar peer group.
As I have stated before, Wall Street doesn’t follow most medium-sized firms with the same intensity that they analyze larger, better-known stocks. This creates opportunity for stock-pickers and investors.
VASVX is a relatively focused portfolio that consists of just 66 stocks at present, including top holdings Royal Caribbean (RCL), Micron (MU), Omnicare (OCR), Cardinal Health (CAH) and Hanesbrands (HBI).
Vanguard Selected Value charges just 0.38% in annual expenses.