Vanguard Selected Value Fund
Click to Enlarge Assets: $8.9 billion
Expenses: 0.44%, or $4.40 on every $1,000 you invest
YTD Performance: +1.6%
10-Year Performance: An average of +10.4% per year.
Vanguard Selected Value (VASVX) chases a select group of stocks that the managers believe are undervalued and have big potential. In a year like 2013, when fast-growing tech stocks are all the rage, a value strategy might not pay off … but over the long-term, having an investment that buys good stocks on their worst days is a very powerful strategy.
Unlike some fashionable funds that briefly have a hot hand, Vanguard Selected Value has had the same team in place since 2005 — with the most senior manager, James Barrow, at the helm since 1999. This experience has led to impressive long-term returns of more than 10% annually.
So what are Mr. Barrow and his team buying right now? Well, top holdings at Selected Value as of this moment include chipmaker Micron (MU), which is up an impressive 22% since Jan. 1, and healthcare services midcap Omnicare (OCR), which is up about 9% in the same period.
Read more about the Vanguard Selected Value fund here.