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Vanguard mutual funds have gained a lot of popularity due to their reputation for being high-quality and reasonably priced. Vanguard’s $5. A 7% trillion investment in mutual funds under management provides the company with approximately a 2023% market share, or about 2040% more than the second-place finisher, Fidelity Investments, which has E2%80%99% of total net assets, according to Morningstar Direct.
It should come as no surprise that taxable investment accounts and Vanguard mutual funds are staples of retirement savings. The business provides a large range of investment options, including over 200 mutual funds in the U.S. S.
Vanguard offers both actively managed and passively indexed mutual funds. It oversees some of the most well-known balanced portfolios, bond funds, and widely diversified stock funds. The complex provides various options that are targeted towards specific industries and geographic markets.
The top nine Vanguard mutual funds have been selected by Forbes Advisor to assist you in building your investment portfolio for retirement or other long-term objectives. We have concentrated on diversified funds because they are good long-term core portfolio anchors because they spread their investment bets to reduce volatility.
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Vanguard, a renowned leader in the financial industry, boasts a diverse selection of mutual funds catering to various investor needs. This guide dives into the top 9 Vanguard mutual funds for 2024, offering valuable insights to help you make informed investment decisions.
Navigating the World of Vanguard Funds
With over 200 mutual funds under its belt, Vanguard provides a wealth of options for investors seeking to build a robust portfolio. These funds encompass a broad spectrum, ranging from passive index funds to actively managed portfolios. Whether you’re a seasoned investor or just starting your journey, Vanguard’s offerings cater to diverse risk appetites and long-term goals.
Top 9 Vanguard Mutual Funds for 2024
1. Vanguard Russell 1000 Growth Index Fund (VRGWX):
- Expense Ratio: 0.07%
- Dividend Yield: 0.67%
- 10-Year Avg. Ann. Return: 15.65%
This fund tracks the performance of the largest 1000 U.S companies, offering exposure to leading growth stocks. Its low expense ratio and impressive returns make it an attractive option for long-term growth-oriented investors
2. Vanguard FTSE Social Index Fund (VFTNX):
- Expense Ratio: 0.12%
- Dividend Yield: 1.05%
- 10-Year Avg. Ann. Return: 13.10%
For investors seeking socially responsible investments, VFTNX provides a compelling choice. It aligns with environmental, social, and corporate governance (ESG) criteria, excluding companies involved in controversial industries like tobacco and weapons.
3. Vanguard Growth & Income Fund (VGIAX):
- Expense Ratio: 0.22%
- Dividend Yield: 1.08%
- 10-Year Avg. Ann. Return: 12.80%
This fund strikes a balance between growth and income generation, making it a versatile addition to a diversified portfolio. VGIAX’s holdings encompass nearly 900 stocks, providing broad market exposure.
4. Vanguard Target Retirement 2050 Fund (VFIFX):
- Expense Ratio: 0.08%
- Dividend Yield: 2.07%
- 10-Year Avg. Ann. Return: 8.34%
Target date funds like VFIFX offer an automated approach to investing, gradually adjusting asset allocation as the target retirement date approaches. This fund is ideal for hands-off investors seeking a diversified portfolio with a long-term horizon.
5. Vanguard High-Yield Corporate Fund (VWEAX):
- Expense Ratio: 0.13%
- Dividend Yield: 5.97%
- 10-Year Avg. Ann. Return: 4.17%
This fund focuses on high-yield corporate bonds, providing investors with the potential for higher income. VWEAX’s experienced management team prioritizes higher-rated junk bonds to minimize defaults and principal loss.
6. Vanguard High-Yield Tax-Exempt Fund (VWALX):
- Expense Ratio: 0.09%
- Dividend Yield: 3.66%
- 10-Year Avg. Ann. Return: 3.51%
VWALX offers tax-exempt income, making it an attractive option for investors in high tax brackets. This fund primarily invests in investment-grade municipal bonds, balancing higher yields with stability.
7. Vanguard Explorer Fund (VEXRX):
- Expense Ratio: 0.34%
- Dividend Yield: 0.58%
- 10-Year Avg. Ann. Return: 9.82%
VEXRX focuses on smaller-cap stocks, providing diversification opportunities for investors with a growth-oriented mindset. This fund’s impressive returns over the past decade make it a top performer in its category.
8. Vanguard Wellington Fund (VWELX):
- Expense Ratio: 0.26%
- Dividend Yield: 2.11%
- 10-Year Avg. Ann. Return: 8.06%
Established in 1929, VWELX is a balanced fund with a long history of success. Its portfolio comprises approximately two-thirds stocks and one-third bonds, offering a moderate risk profile.
9. Vanguard Tax-Managed Capital Appreciation Fund (VTCIX):
- Expense Ratio: 0.06%
- Dividend Yield: 1.18%
- 10-Year Avg. Ann. Return: 12.59%
VTCIX is designed to minimize tax implications for investors holding shares in taxable accounts. This fund tracks the Russell 1000 Index, keeping turnover low to reduce capital gains.
Choosing the Right Vanguard Fund for You
When selecting Vanguard mutual funds, consider your individual investment goals, risk tolerance, and time horizon. Diversification is crucial, so aim to include funds across different asset classes and investment styles.
Additional Resources:
- Vanguard website: https://investor.vanguard.com/
- Forbes Advisor: Best Vanguard Mutual Funds: https://www.forbes.com/advisor/retirement/best-vanguard-mutual-funds/
- U.S. News & World Report: Best Vanguard Funds to Buy and Hold: https://money.usnews.com/investing/articles/best-vanguard-funds-to-buy-and-hold
By carefully evaluating your options and conducting thorough research, you can choose the Vanguard mutual funds that align perfectly with your financial aspirations.
Vanguard Russell 1000 Growth Index Fund (VRGWX)
10-Year Avg. Ann. Return
Look at that 0! The Vanguard Russell 1000 Growth Index Fund has extremely low expenses. 7% annual expense ratio is E2%80%94, which is in line with some of the largest growth stocks in the U.S. S.
The 10-year average annual return of VRGWX exceeds the S Actually, over the previous ten years, it was the second-best-performing diversified Vanguard stock fund. This fund has demonstrated over time its capacity to outperform your retirement portfolio.
Vanguard High-Yield Tax-Exempt Fund (VWALX)
10-Year Avg. Ann. Return
Over the last ten years, one of the best performing municipal bond funds has been the Vanguard High-Yield Tax-Exempt Fund. The fund’s mission is to produce a high, steady income stream that is free from IRS enforcement.
While many of VWALX’s holdings have lower credit quality, which contributes to the fund’s higher yield, it also means that the fund may be slightly more volatile than the category average. However, the fund prefers that its investors be able to sleep through the night, so in order to reduce volatility, it invests at least 80% of its assets in investment-grade municipal bonds.
5 Vanguard Funds Ranked for Highest Return
FAQ
What are the best Vanguard funds right now?
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Vanguard Fund
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Expense Ratio
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Vanguard S&P 500 ETF (VOO)
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0.03%
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Vanguard High Dividend Yield ETF (VYM)
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0.06%
|
|
Vanguard Dividend Appreciation ETF (VIG)
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0.06%
|
|
Vanguard Consumer Staples ETF (VDC)
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0.10%
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What Vanguard fund is best for retirees?
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Vanguard Fund
|
Expense Ratio
|
|
Vanguard Total Stock Market Index Fund Admiral Shares (VTSAX)
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0.04%
|
|
Vanguard Explorer Fund Investor Shares (VEXPX)
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0.45%
|
|
Vanguard Long-Term Treasury Index Fund Admiral Shares (VLGSX)
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0.07%
|
|
Vanguard Mid Cap Growth Fund (VMGRX)
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0.37%
|
What are the best Vanguard funds for 2024?
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Fund
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Expense Ratio
|
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Vanguard FTSE Social Index Fund (VFTNX)
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0.12%
|
|
Vanguard Growth & Income Fund (VGIAX)
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0.22%
|
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Vanguard Target Retirement 2050 Fund (VFIFX)
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0.08%
|
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Vanguard High-Yield Corporate Fund (VWEAX)
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0.13%
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What is a vanguard index fund?
Vanguard index funds are a type of mutual fund where thousands of investors pool their cash to purchase shares in a fund that mimics a benchmark index, such as the S&P 500 (hence the name “index fund”). That was a radically different investment approach when Vanguard founder John Bogle launched the first publicly available index fund in 1976.
Should you invest in Vanguard index mutual funds & ETFs?
Investors can confidently buy and hold these funds in a long-term portfolio. These Vanguard index mutual funds and ETFs investing in stocks have at least one share class that earns a Morningstar Medalist Rating of Gold with 100% analyst coverage as of January 2024.
Is Vanguard a good mutual fund?
Vanguard is a well-known mutual fund company that offers over 100 index funds and ETFs to investors. The funds vary in account minimum balances and how much each fund charges in fees, but Vanguard is best known for its low-fee index funds. 1. The Vanguard Wellesley Income Admiral (VWIAX)
Which Vanguard funds are most popular?
The Vanguard Wellesley Income Admiral, the Vanguard Tax-Managed Balanced Fund Admiral, and the Vanguard High-Yield Tax-Exempt Fund are all popular vanguard funds. What constitutes the “most popular” depends on the individual investor. What Qualifies a Fund for a 5 Star Rating From Morningstar?