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The 5 Best Vanguard Funds to Buy Now

Don't just get Vanguard's low costs — get high quality, too

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Vanguard Small-Cap Value Index (VISVX)


Source: Vanguard

Vanguard is a fund family that consistently promotes the value of its index fund offerings. However, while Vanguard Small-Cap Value Index (VISVX) is one of its lesser-known options, it continues to post solid results.

This Vanguard fund seeks out undervalued, out-of-favor names in the small-cap world; it currently holds more than 800 companies. VISVX is dedicated in large part to financials, which account for 29% of the portfolio. Clearly this fund is a good way to play the continuing recovery in this sector.

Recent top holdings include Towers Watson (TW), Genworth Financial (GNW), Hanesbrands, Jarden Corp. (JAH) and Fidelity National Financial (FNF).

VISVX is up 32% so far in 2013, and has appreciated by an annualized 10% over the past decade. As an added and unexpected bonus, VISVX pays some dividend income, to the tune of 1.9% over the trailing 12 months.

The fund has a reasonable $3,000 minimum to get started, and the same goes for VHCOX, VASVX and VDIGX. Expenses are just 0.24% annually.

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