3 Top-Ranked Vanguard Mutual Funds With Solid Upside Potential
Vanguard, one of the world’s largest asset management corporations, was founded by John C. Bogle on May 1, 1975. Headquartered in Valley Forge, PN, the company had $12 trillion in assets under management globally as of Dec. 31, 2025. Vanguard had more than 20,000 employees worldwide as of Dec. 31, 2024, and offered 228 funds in the United States and 237 in foreign markets to millions of investors.
Vanguard is owned entirely by funds, a unique feature among mutual fund firms. According to the company, this structure allows management to focus more on shareholder interests. Among the most significant advantages, Vanguard claims to offer low-cost, no-load funds. This means that the fund doesn’t charge investors when fund shares are being bought or sold.
Below, we share with you three top-ranked Vanguard funds, namely, Vanguard Horizon Fund, Vanguard Capital Opportunity Fund VHCOX, Vanguard Strategic Equity Fund VSEQX andVanguard U.S. Growth Fund VWUSX. Each has earned a Zacks Mutual Fund Rank #1 (Strong Buy) and is expected to outperform peers in the future. Investors can click here to see the complete list of Vanguard Mutual Funds.
Vanguard Horizon Fund, Vanguard Capital Opportunity Fund invests most of its net assets in securities that have prospects for rapid earnings growth, preferably in the mid-cap space. VHCOX advisors use fundamental research to select stocks that are expected to outperform the market over a three-five-year time horizon and are available at a discounted price.
Vanguard Horizon Fund, Vanguard Capital Opportunity Fund has a three-year annualized return of 23.2%. As of the end of March 2026, VHCOX held 189 issues, with 6.6% of its assets invested in Eli Lilly.
Vanguard Strategic Equity Fund invests most of its net assets in small-cap U.S. companies, which, according to the advisor, have the right balance between strong growth prospects and reasonable valuations relative to their industry peers. VSEQX advisors use quantitative techniques to evaluate all of the securities using the MSCI U.S. Small + Mid Cap 2200 Index as the benchmark, with a risk profile similar to that of the index.
Vanguard Strategic Equity Fund has returned 20.6% in the past three years. VSEQX has an expense ratio of 0.17%.
Vanguard U.S. Growth Fund invests most of its net assets in securities issued by large-cap U.S. companies. VWUSX advisors choose to invest in companies that have above-average earnings growth potential and rational stock prices compared with future earnings.
Vanguard U.S. Growth Fund has a three-year annualized return of 19.1%. Blair A. Boyer has been the fund manager of VWUSX since February 2014.
To view the Zacks Rank and past performance of all Vanguard Mutual Funds, investors can click here to see the complete list of Vanguard Mutual Funds.
Want key mutual fund info delivered straight to your inbox?
Zacks' free Fund Newsletter will brief you on top news and analysis, as well as top-performing mutual funds, each week. Get it free >>
Zacks' Research Chief Names "Stock Most Likely to Double"
Our team of experts has just released the 5 stocks with the greatest probability of gaining +100% or more in the coming months. Of those 5, Director of Research Sheraz Mian highlights the one stock set to climb highest.
Of course, all our elite picks aren't winners, but this one could far surpass earlier Zacks' Stocks Set to Double like D-Wave Quantum, which shot up +680.1%.
Free: See Our Top Stock And 4 Runners UpView All Zacks #1 Ranked Mutual Funds
Get Your Free (VWUSX): Fund Analysis Report
Get Your Free (VSEQX): Fund Analysis Report
Get Your Free (VHCOX): Fund Analysis Report
This article originally published on Zacks Investment Research (zacks.com).
