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5 Best-Ranked Vanguard Mutual Funds to Invest In

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Vanguard is one of the world's largest investment management company, founded by John C. Bogle in 1975. It manages around $3 trillion in assets. It offers nearly 160 domestic funds and 120 funds for foreign markets (as of Dec 31, 2014). It offers asset management and financial planning services to clients throughout the globe. Unlike other mutual fund companies, Vanguard is owned by the funds themselves. This helps its management to focus more on shareholder interests. Among other advantages, it claims to offer low-cost, no-load funds.

Below we share with you 5 top-rated Vanguard mutual funds. Each has earned a Zacks Mutual Fund Rank #1 (Strong Buy) and we expect the fund to outperform its peers in the future. To view the Zacks Rank and past performance of all Vanguard mutual funds, investors can click here to see the complete list of Vanguard funds .

Vanguard Strategic Equity Investor ( VSEQX ) seeks long-term growth of capital. VSEQX invests a large portion of its assets in equity securities. VSEQX invests in both small- and mid-capitalization domestic equity securities. VSEQX selects securities that provide a balance between strong growth and reasonable valuations compared to industry peers. The Vanguard Strategic Equity Investor fund has a three-year annualized return of 11.8%.

VSEQX has an expense ratio of 0.21% as compared to the category average of 1.15%.

Vanguard Growth Index Investor ( VIGRX ) employs an indexing investment approach. VIGRX seeks to track the performance of the CRSP US Large Cap Growth Index by investing most of its assets in the stocks that make up the index. The Vanguard Growth Index Investor fund has a three-year annualized return of 12.1%.

Gerard C. O'Reilly is the fund manager since 1994.

Vanguard Mid Cap Growth Investor ( VMGRX ) seeks long-term capital growth. VMGRX invests a large chunk of its assets in the securities of mid-cap companies. VMGRX primarily emphasizes on acquiring common stocks of companies that have above-average growth potential. The Vanguard Mid Cap Growth Investor fund has a three-year annualized return of 8.9%.

VMGRX has an expense ratio of 0.43% as compared to the category average of 1.29%.

Vanguard Balanced Index I ( VBAIX ) employs an indexing investment approach. With around 60% of its assets, VBAIX seeks to track the performance of the CRSP U.S. Total Market Index. With the remaining part of its assets, VBAIX seeks to track the investment performance of the Barclays U.S. Aggregate Float Adjusted Index. The Vanguard Balanced Index I fund has a three-year annualized return of 7.3%.

As of January 2016, VBAIX held 11,796 issues with 1.49% of its assets invested in Apple Inc.

Vanguard US Growth Investor ( VWUSX ) invests primarily in securities of companies located in the U.S. VWUSX focuses on acquiring common stocks of companies having large-cap market capitalizations. VWUSX considers companies with strong earnings growth prospects and favorable valuation for potential investment. The Vanguard US Growth Investor fund has a three-year annualized return of 13.8%.

VWUSX has an expense ratio of 0.47% as compared to the category average of 1.17%.

To view the Zacks Rank and past performance of all Vanguard mutual funds, investors can click here to see the complete list of funds .

About Zacks Mutual Fund Rank

By applying the Zacks Rank to mutual funds, investors can find funds that not only outpaced the market in the past but are also expected to outperform going forward. Pick the best mutual funds with the Zacks Rank.

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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.


The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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VMGRX VBAIX VWUSX VIGRX VSEQX

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