One of the world’s largest investment management firms, Vanguard was founded in 1975 by John C. Bogle and is headquartered in Valley Forge, PN.The fund had $7.1 trillion in assets under management globally as of June 30, 2022.
The firm had more than 18,800 employees worldwide as of December 31, 2021, and offers 203 funds in the U.S. and 207 funds in foreign markets. Vanguard offers low-cost, uncomplicated equity, fixed income and multi-asset funds that help investors achieve their long-term goals.
Vanguard is wholly owned by funds, a unique feature among mutual fund firms. This structure allows management to focus more on the interests of shareholders. Among its biggest advantages, Vanguard offers low-cost, no-load funds. This means that the fund does not charge investors when buying or selling shares.
In 2022, Vanguard Mutual Fund will impress
Last year, the S&P 500, Dow, and Nasdaq posted negative returns of 17.8%, 7.45%, and 31.25%, respectively. Compared to the broader markets, the funds mentioned below have given positive returns.
Hence, we have selected three vanguard mutual funds that have not only secured investors’ wealth but also delivered impressive returns in 2022. Moreover, we expect them to perform well in the long run. Most of these funds invest in sectors such as energy, financials, non-durables, health, industrial cycles, utilities and basic materials.
These funds have a Zacks Mutual Fund Rank #1 (Strong Buy) or Rank 3 (Hold), positive one-year, three-year and five-year returns, minimum initial investments of $5000 and low expense ratios. compared to the category average. In particular, mutual funds generally reduce transaction costs and prepare portfolios for many of the commission fees associated with buying stocks (read more: Mutual Funds: Pros, Cons, and How Investors Make Money).
Vanguard Equity Income (VEIPX – Free Report) invests the majority of its net assets in relatively undervalued mid- and large-cap companies, according to the Adviser. VEIPX Advisors prefers to invest in stocks that consistently pay above-average dividends.
Sharon Hill will be the General Manager of VEIPX effective February 26, 2021. Most of the fund’s exposure is in financials (20.33%), health (14.50%) and non-sustainable (13.59%) as of 11/30/2022.
VEIPX’s one-year, three-year, and five-year annualized returns are 10.5%, 11.4%, and 9.9%, respectively. VEIPX has a Zacks Mutual Fund Rank #1 and an annual expense ratio of 0.28%, which is lower than the category average of 0.94%.
To see how this fund has performed against the category and other Tier 1, 2 and 3 mutual funds, please click here.
Vanguard Special Portfolio Energy Fund (VGENX – (Free Report) invests the majority of its net assets in common stocks of companies primarily engaged in the energy industry. VGENX chooses to invest in companies that manufacture and service components needed for the exploration, production and distribution of energy or energy fuels, energy research, energy conservation and pollution control.
G. Thomas Levering has been the lead manager of VGENX since January 16, 2020, and most of the fund’s exposure is to energy (49.54%), utilities (34.34%) and industrial cyclicals (7.45%) as of 11/30/2022.
VGENX’s one-year, three-year, and five-year annualized returns are 34.8%, 6.22%, and 1.88%, respectively. VGENX has a Zacks Mutual Fund Rank #3 and an annual expense ratio of 0.43%, which is lower than the category average of 1.07%.
Vanguard Global Capital Cycles Fund Investors Shares (VGPMX – Free Report) seeks above-average compounded returns by investing in the securities of domestic and foreign companies (including emerging markets) regardless of their market capitalization. VGPMX prefers to invest in companies in various sectors where the cost of capital is declining and companies, assets and business models can be easily replicated.
Keith E. White has been the CEO of VGPMX since July 27, 2018, and the majority of the fund’s exposure is to basic materials (37.04%), utilities (13.59%), and financial services (13.15%) as of 7/31. /2022.
VGPMX’s one-year, three-year, and five-year annualized returns are 12.1%, 16.5%, and 5.7%, respectively. VGPMX has a Zacks Mutual Fund Rank #1 and an annual expense ratio of 0.42% versus the category average of 0.95%.
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