Some of the oldest and best mutual funds on the market include Vanguard large-cap growth funds. The set of five funds offers a diversity of choice that includes actively managed and passively managed funds, as well as funds that focus on specific growth industries.
Investors that hold large-cap growth funds are typically looking for long-term capital growth and are not interested in dividends or current income. Large-cap stocks tend to carry less market risk compared to small-cap stocks but the growth style adds an element of risk and higher potential reward compared to broad market indices, such as the S&P 500 index.
Large-cap growth funds can also serve as core holdings, or as complements to value-style stock funds, in a diversified portfolio.
In no particular order, here are the five Vanguard large-cap growth funds on the market today:
Vanguard Large-Cap Growth Funds
Vanguard Morgan Growth (MUTF:VMRGX): Vanguard’s Morgan Growth fund, around since 1968, is one of the oldest large-cap growth funds available on the market today. Although the average market cap for VMRGX is large, it also includes some mid-cap stocks, which give the fund a boost in potential long-term returns. The management team is divided into four advisers, each with unique but complimentary investment strategies. The portfolio consists of roughly 300 stocks with potential for above-average growth potential. Expenses for VMRGX are 0.38%, or $38 for every $10,000 invested.
Vanguard Growth Index (MUTF:VIGRX): Investors wanting a passively managed mutual fund that tracks an index covering large-cap growth stocks may consider buying shares of VIGRX. This low-cost index fund tracks the CRSP U.S. Large Cap Growth Index, which consists of over 300 large-cap stocks like Apple Inc. (NASDAQ:AAPL), Amazon.com, Inc. (NASDAQ:AMZN) and Facebook Inc (NASDAQ:FB). The expenses for VIGRX are 0.18%.
Vanguard FTSE Social Index (MUTF:VFTSX): Vanguard’s VFTSX is a socially responsible fund that invests in stocks of companies that have been screened for certain social, environmental and governance concerns. Therefore VFTSX can be appropriate for socially conscious investors looking for long-term capital appreciation. VFTSX passively tracks the FTSE4Good US Select Index. Expenses for the fund are 0.22%.
Vanguard PRIMECAP (MUTF:VPMCX): This large-cap growth fund from Vanguard is one of the oldest in the lineup, dating back to 1984. Its annualized return since inception more than 30 years ago has averaged approximately 13.5%, which is an amazing feat in the world of mutual funds. The market cap for the holdings averages large but there are mid-cap stocks in the mix. Primecap also tends to concentrate its holdings into a few key sectors, such as technology and health. The expense ratio for this actively-managed growth fund is 0.39%. As of this writing, VPMCX was closed to new investors.
Vanguard U.S. Growth (MUTF:VWUSX): Dating back to 1959, VWUSX is Vanguard’s oldest growth fund. Investors looking for a mutual fund that holds big blue-chip stocks that can grow earnings in the long term will want to consider holding the U.S. Growth fund. The focus on quality large-caps tends to make VWUSX less aggressive than the other Vanguard growth funds, but this quality can also tamp down on market risk compared to other growth funds. Expenses for VWUSX are 0.46%.
As of this writing, Kent Thune did not personally hold a position in any of the aforementioned securities. His No. 1 holding is his privately held investment advisory firm. Under no circumstances does this information represent a recommendation to buy or sell securities.