Apart from being one of the leading investment management companies in the world, Vanguard is also popular among investors for its low-cost funds. The company offers nearly 300 low-cost funds, which enable it to attract a significant portion of investor assets. As of Jun 30, 2017, the company had over $4.4 trillion of assets under management. Founded by John C. Bogle in 1975, the company now offers asset management and financial planning services to around 20 million investors throughout the globe.
Vanguard stands out from the other mutual fund companies because it is owned by the funds themselves. The company believes that this structure helps management focus better on shareholder interests. Among the advantages Vanguard claims to offer, low-cost and no-load are notable.
Below we share with you three top-ranked Vanguard mutual funds. Each has earned a Zacks Mutual Fund Rank #1 (Strong Buy) and is expected to outperform its peers in the future. Investors can click here to see the complete list of Vanguard funds, their Zacks Rank and past performance.
Vanguard Value Index Investor Fund (MUTF:VIVAX) invests nearly all its assets in stocks of companies which are included in the CRSP US Large Cap Value Index. VIVAX seeks to replicate the performance of the index by investing a proportion of its assets in each stock as its weighting in the index. The Vanguard Value Index Investor fund has a three-year annualized return of 8.7%.
Gerard O’Reilly has been one the fund managers of VIVAX since 1994.
Vanguard High Dividend Yield Index Investor Fund (MUTF:VHDYX) seeks to track the performance of a benchmark index that measures investment returns of common stocks of companies that are characterized by high dividend yield. VHDYX employs an indexing investment approach designed to track the performance of the FTSE High Dividend Yield Index, which consists of common stocks of companies that pay above-average dividends. The Vanguard High Dividend Yield Index Investor fund has a three-year annualized return of 9.3%.
VHDYX has an expense ratio of 0.15% compared with the category average of 1.04%.
Vanguard Selected Value Fund (MUTF:VASVX) seeks growth of capital and income for the long run. VASVX invests its assets heavily in undervalued stocks issued by mid-cap domestic companies. Undervalued stocks are those that trade below the book value. Vanguard Selected Value Fund Investor Shares has a three-year annualized return of 7.6%.
As of June 3, 2017, VASVX held 123 issues with 2.55% of its assets invested in Micron Technology Inc.
To view the Zacks Rank and past performance of all Vanguard mutual funds, investors can click here to see the complete list of funds.
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