The U.S. economy remains resilient, supported by strong corporate earnings, steady consumer spending, and a healthy labor market, even as inflation pressures have intensified. The Consumer Price Index (CPI) for the month of April rose 3.8% year over year, while core CPI reached 2.8%, driven mostly by higher oil and gasoline prices, which is linked to disruptions in the Strait of Hormuz. The Producer inflation has accelerated even faster, with the Producer Price Index surging 6% annually, marking the highest level since 2022. Bond yields have also climbed sharply as investors have less expectations for the Federal Reserve’s interest rate cuts. Retail sales increased 0.5% in April, matching the street’s forecasts, while jobless claims remained historically low near 209,000, signaling continued labor market strength.
Manufacturing and housing data painted a mixed picture. Industrial production rose 0.7% for the month of April, while the Empire State Manufacturing Index jumped to 19.6, reflecting stronger factory activity. However, the Philly Fed index slipped into negative territory, highlighting uneven regional demand. Meanwhile, oil prices stayed above $100 per barrel, raising concerns that prolonged energy disruptions could keep inflation elevated and slow economic momentum in the coming months.
In such a market situation, mutual fund investing can help those who wish to diversify their portfolio among various asset classes. Investors who lack professional expertise in managing funds can choose to invest in Vanguard mutual funds, such as Vanguard Primecap Core Fund VPCCX, Vanguard U.S. Growth Fund VWUSX, Vanguard Strategic Small-Cap Equity Fund VSTCX, Vanguard Growth and Income Fund VQNPX and Vanguard Specialized Portfolios Energy Fund VGENX,as they provide low-cost, uncomplicated equity, fixed-income and multi-asset funds that can help investors meet their goals.
These funds have wide exposure in sectors such as finance, industrial cyclical, technology, retail trade, non-durable and healthcare since they have given a positive return and are expected to perform well in the near future.
Why Invest in Vanguard Mutual Funds?
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 Feb. 28, 2026, 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.
These funds boast a Zacks Mutual Fund Rank #1 (Strong Buy), have positive three-year and five-year annualized returns, minimum initial investments within $5000, and carry an expense ratio of less than 1%. Mutual funds, in general, reduce transaction costs and diversify portfolios without an array of commission charges mostly associated with stock purchases (read more: Mutual Funds: Advantages, Disadvantages, and How They Make Investors Money).
Vanguard Primecap Core Fund invests most of its net assets in companies across all industry sectors and market capitalizations that offer a good balance between reasonable valuations and attractive growth prospects relative to their peers. VPCCX advisors prefer to invest in companies that have above-average earnings growth potential, which is not reflected in their current market prices.
Joel P. Fried has been the lead manager of VPCCX since Dec. 9, 2024. Most of the fund’s exposure is in companies like Eli Lilly (6.4%), Micron Technology (3.8%) and Alphabet (3.3%) as of Dec. 31, 2025.
VPCCX’s three-year and five-year annualized returns are 25.4% and 14.5%, respectively. VPCCX has an annual expense ratio of 0.44%.
To see how this fund performed compared to its category and other 1, 2 and 3 Ranked Mutual Funds, please click here.
Vanguard US 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.
Blair A. Boyer has been the lead manager of VWUSX since Feb. 21, 2014. Most of the fund’s exposure was in companies like NVIDIA (11.4%), Apple (6.8%) and Microsoft (6.8%) as of Feb. 28, 2026.
VWUSX’s three-year and five-year annualized returns are 23.5% and 6.9%, respectively. VWUSX has an annual expense ratio of 0.35%.
Vanguard Strategic Small-Cap Equity Fund invests most of its assets, along with borrowings, if any, in equity securities of small-cap U.S. companies.
Cesar Orosco has been the lead manager of VSTCX since Feb. 26, 2021. Most of the fund’s exposure is in companies like EnerSys (0.7%), Brixmor Property Group (0.7%) and Ionis Pharmaceuticals (0.7%) as of Dec. 31, 2025.
VSTCX’s three-year and five-year annualized returns are almost 22.2% and 11.9%, respectively. VSTCX has an annual expense ratio of 0.23%.
Vanguard Growth and Income Fund invests most of its net assets in stocks that provide dividend income as well as the potential for capital appreciation. VQNPX advisors use quantitative approaches to select a broadly diversified group of stocks with investment characteristics, such as those of companies listed on the S&P 500 Index, but are expected to provide a higher total return than that of the index.
Hal Reynolds has been the lead manager of VQNPX since Sept. 30, 2011. Most of the fund’s holdings were in companies, such as NVIDIA (8.5%), Microsoft (5.8%) and Apple (5.4%) as of Dec. 31, 2025.
VQNPX’s three-year and five-year annualized returns are 22.1% and 13.2%, respectively. VQNPX has an annual expense ratio of 0.39%.
Vanguard Specialized Portfolios Energy Fund invests most of its net assets in common stocks. VGENX advisors generally invest in companies principally engaged in the energy industry, such as exploration, production, and transmission of energy or fuels, as well as the manufacturing and servicing of products required for energy research, energy conservation and pollution control.
G. Thomas Levering has been the lead manager of VGENX since Jan. 15, 2020. Most of the fund’s exposure was in companies like Exxon Mobil (9.1%), Shell PLC (8.7%) and TotalEnergies (6.3%) as of Jan. 31, 2026.
VGENX’s three-year and five-year annualized returns are 21.1% and 20.6%, respectively. VGENX has an annual expense ratio of 0.45%.
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