When most investors hear the name Vanguard funds, they think of indexing. After all, Vanguard founder John Bogle created the idea of passive investing when he launched Vanguard 500 Index Fund tracker (NYSEARCA:VOO) decades ago. Today, billions of investor dollars sit in these passive Vanguard funds.
But surprising to many investors, Vanguard is a pretty decent active shop as well.
The firm has plenty of outperforming active mutual funds on its roster, and they scarcely get any real mention from market pundits or investors.
However, these active Vanguard funds could be your portfolio’s best friend. The key is their stellar management, and like all Vanguard mutual funds and ETFs, they feature very low expensive ratios. That allows them to overcome the main hurdle against active management — high fees.
In the end, Vanguard shows that active management can still work and perform well for industries. With that in mind, here are three active Vanguard funds that you should consider for your portfolio.