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7 Best Vanguard Funds for the Return of Volatility

The best time to begin planning for volatility is when the market is calm. Start with this list of stalwart Vanguard funds.

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Best Vanguard Funds for a Volatile Market: Vanguard Global Minimum Volatility (VMVFX)

Best Vanguard Funds for a Volatile Market: Vanguard Global Minimum Volatility (VMVFX)
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Expenses: 0.25%, or $25 annually for every $10,000 invested
Minimum Initial Investment: $3,000

Investors looking to minimize risk through diversification in stocks of companies around the globe can consider holding Vanguard Global Minimum Volatility (MUTF:VMVFX).

VMVFX diversifies its holdings by investing in U.S. stocks and non-U.S. stocks that the fund management believes possess lower risk characteristics than relative market indices. The global allocation is 59% U.S. stocks, with the remainder in the Pacific (17%), Europe (16%), emerging markets (8%) and the Middle East (trace).

Top holdings in the portfolio are stocks in the mid- to large-cap range, so companies like RenaissanceRe Holdings Ltd. (NYSE:RNR), Waste Management, Inc. (NYSE:WM), and HDFC Bank Limited (ADR) (NYSE:HDB), although the fund also holds small caps.

Investors should keep in mind that, although VMVFX will typically outperform the average global fund in a down market, the fund will typically underperform in a rising market.

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Article printed from InvestorPlace Media, http://investorplace.com/2017/05/7-best-vanguard-funds-for-market-volatility/.

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