3 Best Vanguard Funds for the Second Half of 2017

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Vanguard funds - 3 Best Vanguard Funds for the Second Half of 2017

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Vanguard funds generally appeal to long-term investors, but making short-term tactical moves, such as buying shares of a few select funds now for the second half of 2017, can be smart for almost any investment objective.

3 Best Vanguard Funds for the Second Half of 2017For example, a time-tested portfolio management strategy is to employ the core-and-satellite design, which begins with a core holding, such as Vanguard 500 Index (MUTF:VFINX), and satellite funds representing diverse categories are built around the core.

When looking for strategic areas to buy in the short-term, a long-term investor can either add to existing shares or look at adding other funds, in this case satellites, to the mix.

With this strategy in mind for the best Vanguard funds in the second half of 2017, we’ll highlight three funds that can outperform the broad market indices through the end of the year and that can also be good long-term holdings to build around a core.

Best Vanguard Funds for 2017: Vanguard Energy (VGENX)

Best Vanguard Funds for 2017: Vanguard Energy (VGENX)Expenses: 0.41%, or $41 for every $10,000 invested
Minimum Initial Investment: $3,000

With oil prices near multi-year lows, and energy funds taking a big hit in the first half of 2017, now can be a good time to buy shares of funds like Vanguard Energy (MUTF:VGENX) at lower prices.

VGENX, which is an actively-managed fund, holds about 130 energy stocks like Exxon Mobil Corporation (NYSE:XOM), Chevron Corporation (NYSE:CVX), and Pioneer Natural Resources (NYSE:PXD).

This energy fund is a good way to get a diversified basket of energy stocks, as it holds both U.S. and non-U.S. energy stocks and it covers the mid- and large-cap range.

Best Vanguard Funds for 2017: Vanguard Health Care (VGHCX)

Best Vanguard Funds for 2017: Vanguard Health Care (VGHCX)Expenses: 0.37%
Minimum Initial Investment: $3,000

Even as politicians on Capitol Hill struggle with healthcare legislation, the health sector continues to outpace the broader market and this momentum could help funds like Vanguard Health Care (MUTF:VGHCX) finish 2017 on a strong note.

Health stocks had a tough 2016 with negative returns in the double digits, but the sector is back up to double digit gains in the first half of 2017. This could be a momentum play through year-end 2017, especially with the help of bio-technology stocks that are driving the health sector now.

Top holdings in VGHCX include large-cap health stocks like Bristol-Myers Squibb Co (NYSE:BMY), Allergan plc Ordinary Shares (NYSE:AGN), and UnitedHealth Group Inc (NYSE:UNH).

Best Vanguard Funds for 2017: Vanguard International Explorer (VINEX)

Best Vanguard Funds for 2017: Vanguard International Explorer (VINEX)Expenses: 0.41%
Minimum Initial Investment: $3,000

International stocks are back in 2017 and Vanguard International Explorer (MUTF:VINEX) may be the best Vanguard fund to capture that momentum for the second half of the year.

VINEX invests in smaller non-U.S. companies like Nippon Shinyaku (OTCMKTS:NPPNY), Ubisoft Entertainment (OTCMKTS:UBSFF), and Anima Holding (OTCMKTS:ANNMF) that have potential of growing faster than the broader market indices that typically represent large-cap internationals.

Its aggressive objective can result in more pronounced volatility than the overall market, but that same aggressive nature means higher potential annualized returns in the long run.

As of this writing, Kent Thune did not personally hold a position in any of the aforementioned securities. Under no circumstances does this information represent a recommendation to buy or sell securities.


Article printed from InvestorPlace Media, https://investorplace.com/2017/06/3-best-vanguard-funds-second-half-2017/.

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