Mutual Fund Reviews: Vanguard

Vanguard mutual funds include a collection of 117 actively managed funds, and over 150 U.S., exchange traded and International funds and financial portfolios. Vanguard's funds focus on a number of financial goals, risk levels, sectors and returns. The highest 10 year yield for Vanguard's current mutual funds is 12.96% for its Energy fund (VGENX), and the largest yield since mutual fund initiation is the company's Health Care Fund (VGHCX) at 16.14%. The company's oldest open funds are the Wellington (VWELX), the Windsor Fund (VWNDX), and U.S. Growth Fund (VWUSX) with inception dates of July 1929, October 1958, and January 1959.

History and profile of Vanguard mutual funds

Vanguard Corporation officially acquired this name in 1975, however, the mutual funds it manages include the aforementioned Wellington fund dating back to 1929. The company has an international presence with branches in worldwide financial hubs and centers. With over $1 trillion dollars in company assets, Vanguard is essentially a financial services firm making its mutual funds, financial planning and brokerage services central to its operations. Vanguard's mutual funds are overseen and managed by 11 Board Directors and 9 highly qualified managers who are assisted by near 1200 employees.

Types of funds, sample funds and fund ratings

A diverse selection of mutual funds exist, and are available through Vanguard. Additionally, some of the funds are designed to address specific financial planning goals such as retirement, income generation, tax planning, inflation hedging, high growth etc. The company does this through an array of funds of low to high risk at various prices. Three examples of Vanguard funds that have never had an average annual loss for the 1, 5, 10 and since inception categories are the following as sourced per Vanguard:

• Florida Long Term Tax Exempt Fund (VFLTX) 5.7% average return since inception
• Prime Money Market (VMMXX) 6.3% average return since inception
• GNMA Taxable Bond Fund (VFIIX) 8.44% average return since inception

The above funds invest in financial instruments such as State and Federal bonds and two of the funds having Morningstar ratings of 4 and 5 stars. Specifically, the GNMA taxable bond fund has a 5 star rating and the Florida Long Term Tax Exempt Fund has a 4 star rating. Moreover, both of these funds have at least 260 competing funds according to fidelity investments. All three of the above funds have $3000.00 minimum investment requirements with the a Beta close to 1 in the case of the Florida tax exempt fund a Beta of .74 in the as of the GNMA fund.

Cost of Vanguard mutual funds

Vanguard boasts a .2 percent expense ratio on its mutual funds meaning the percent used to pay for fund and/or account maintenance of the total investment made. For example, if Mr. Jones buys $1000.00 worth of Vanguard Mutual funds, the average expense for Vanguard mutual funds applied to Mr. Jones' investment would add up to $2.00. Some of Vanguard's funds have fees of 1% for redemption prior to the expiration of 1 year in time and at least one fund has a 1% redemption fee for under 5 years. The funds themselves range in price depending on market conditions and demand and some funds such as two of the funds listed in this article have transaction fees but are also no load funds meaning commission is not charged on the sale or purchase of these funds however a transaction rather than a sales fee applies.

Sources:

1. https://personal.vanguard.com/us/funds/vanguard/all?sort=type&sortorder=asc
2. http://tinyurl.com/6bu5maw (Vanguard)
3. http://tinyurl.com/65el4t5 (Fidelity Investments)