Mutual Funds, Vanguard Paper

In: Business and Management

Submitted By Toby10
Words 1367
Pages 6
Vanguard Mutual Fund Evaluation
FIN/420
1/26/2014

The Vanguard Group The Vanguard Group offers an array of mutual funds, exchange-traded funds, brokerage, and asset management. When choosing and comparing mutual funds, there are characteristics that you need to first evaluate. This paper will review five different categories of mutual funds that Vanguard Group offers its investors.
Actively Managed Common Stock Fund The Selected Value (ticker VASVX) is an actively managed common stock fund with a 4 star Morningstar rating with a minimum investment of $3,000. This fund does not have a front or rear load fee. The total annual fund operating expenses are 0.41% which means that for every $100 you invest, $.41 goes to paying the person who sold you the fund. VASVX is a mid-cap value investment with a low fee level.
The fund seeks to provide long-term capital appreciation and income. The fund invests mainly in the stock of mid-size U.S. companies, choosing stocks considered by an advisor to be undervalued. Securities include stocks, bonds, and money market instrument, totaling 132 holdings and ten industries. The five largest holdings as of September 29, 2014 are Micron Technology Inc., Hanesbrand Inc. Common Stock, Royal Caribbean Cruises Ltd. Co, Omnicare, Inc. Common Stock, and Discover Financial Services Com. The fund inception occurred on February 15, 1996 and has been managed by Barrow since 1999. The fund inception date tells us that the mutual fund has been around for 19 years and the fund manager for 16 years. This tells us that this mutual fund is more stable than others who are newer or have a less experienced fund manager. This fund has returned 6.36% over the past year, 20.30% over the past three years, and 15.96% over the past five years, and 9.26% over the past decade. These numbers prove that this is a top choice for long-term…...

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