|Expense Ratio (net)||0.34%|
|Last Cap Gain||0.00|
|Morningstar Risk Rating||Low|
|Beta (5Y Monthly)||0.88|
|5y Average Return||N/A|
|Average for Category||N/A|
|Inception Date||May 22, 1984|
Hynes, 51, started doing research work when she arrived at Wellington, eventually focusing on pharmaceuticals and biotech and taking over the Vanguard Health Care Fund in 2012. Hynes hopes more women will enter the field.
Defensive funds could be apt investments as China takes measures for protection against trade war escalation and investors fear a retaliatory action from the United States.
Historically, biotech has been risky from investors' standpoint because, they bet on the assumption that products in the pipeline would turn out be highly successful.
If you're seeking out the best mutual funds, keep your wits about you. Mutual funds have a mind-numbing selection of ways to claim bragging rights. "Best five-year record." "Best three-year record for value funds." "Best 10-year record for growth funds with at least $1 billion in assets."Morningstar counts 110 mutual fund categories. Even if you spread the awards among the 8,000 or so garden-variety open-ended mutual funds, there would be plenty of opportunities for bragging rights. And, thanks to the longest-running bull market in history, everyone's 10-year record looks great.But it's another thing to outperform the competition over the entirety of a fund's life.Here are the 25 best mutual funds of all time. We looked at the records of all U.S.-listed stock funds - holding U.S. and/or international stocks alike - with at least a 20-year record, and ranked them based on returns since inception. Going for a minimum of two decades eliminates some of the bias from a decade-long bull market, and adds in at least two major bear markets.You'll note there are no index funds, nor any international funds. We didn't exclude them - they just weren't in the top 25 top equity funds. Index funds don't aim to be top performers, and international funds are in a long-term performance drought. We did exclude bond and money market funds, however, because that's not where you go for high performance. SEE ALSO: The 25 Best Low-Fee Mutual Funds to Buy Now
Let's face it: The stock market is infuriating. Valuations are high, global growth is slow, and President Donald Trump's trade war with China has brought elevated volatility to stocks. Meanwhile, bonds, the only sensible alternative, are at near-record high prices and thus offer puny yields.What's an investor to do? One partial remedy is to increase your investment in health care stocks.Health care, which comprises more than 15% of Standard & Poor's 500-stock index, is the only broad market sector that can hold its own in both bull and bear markets. Although, no question, its best performance relative to the overall stock market comes during selloffs. In 2018, for instance, while the S&P; 500 retreated by 4.6% on a total-return basis (price plus dividends), the health care sector gained 5.6%.Which would you rather have: a shiny new BMW or your health? To ask the question is to answer it. If you're really sick, you'll do whatever it takes to recover, no matter the cost. You'll skip the new car, if necessary. Demand for health care is virtually inelastic. What's more, as baby boomers age, they're requiring more medical care. Simultaneously, breakthrough advances in the treatments of diseases - often expensive treatment - continue at a rapid clip.Below are my six best health care funds, in no particular order. SEE ALSO: The 19 Best ETFs for a Prosperous 2019
After stumbling into the bear market territory in the second half of last year, the U.S. biotechnology sector recovered in the first six months of this year.
Editor's note: This story was previously published in March 2019. It has since been updated and republished.If you want your portfolio to hold the best Vanguard funds for 2019, you will want a diverse selection of funds that can perform in an uncertain environment of slowing growth.The best funds in 2019 will likely include defensive sector funds and high-quality dividend funds. If you want to diversify with bond funds, buying those that focus on short-term debt may be the best bet, if the Federal Reserve resumes raising rates.InvestorPlace - Stock Market News, Stock Advice & Trading Tips * 7 Bank Stocks to Leave in the Vault Balanced funds can also be a good idea in 2019. With the Fed pausing its tightening campaign, investors at first cheered but may soon turn to fears of a recession. This makes for economic and market conditions that will continue to bring volatility and ultimate downside for stocks -- and the potential for bond prices to rise.In summary, diversification will likely beat narrow bets in 2019. With that backdrop, I give you the best Vanguard funds for 2019: Vanguard Wellington (VWELX)Expenses: 0.25%, or $25 for every $10,000 invested Minimum Investment: $3,000When uncertainty and volatility abound, long-term investors are wise to diversify with a well-managed, low-cost balanced fund like Vanguard Wellington (MUTF:VWELX).Source: Shutterstock Although 2018 ended on a negative note for stocks, equities can still have a positive 2019, assuming the current positive GDP forecasts hold. This environment is a good match for a moderate-allocation balanced fund like VWELX, which consists of roughly two-thirds stocks and one-third bonds.Among its stock holdings are high-quality large-caps like Microsoft (NASDAQ:MSFT), Verizon (NYSE:VZ) and JPMorgan Chase (NYSE:JPM). Bonds are a diversified mix with an average duration of 9.4 years. Vanguard Wellesley Income (VWINX)Expenses: 0.23% Minimum Investment: $3,000For investors who want to lean to the conservative side in 2019 or retirees who need income but minimal market risk, Vanguard Wellesley Income (MUTF:VWINX) is among the best in the mutual fund universe.Source: Shutterstock VWINX maintains an allocation of roughly one-third stocks and two-thirds bonds. If stocks enter into a full bear market in 2019, bond prices will likely rise as the Fed continues to pause its tightening campaign and the heavy fixed-income allocation in VWINX will minimize losses. * 7 Stocks to Buy for Monster Growth If you're looking for income, VWINX boasts a 3.4% 30-day SEC yield, which comes from quality dividend stocks like JPM, VZ and Johnson & Johnson (NYSE:JNJ). Vanguard High Dividend Yield Index (VHDYX)Expenses: 0.14% Minimum Investment: $3,000In volatile markets, investors often turn to high-quality stocks of dividend-paying companies, like the ones you'll find in Vanguard High Dividend Yield Index (MUTF:VHDYX).Source: Shutterstock When investors transition from the riskier growth stocks, small-caps and international stocks, they often turn to big U.S. blue-chip stocks that pay dividends. If stocks have a positive 2019, these quality stocks will be among the leaders, and a passively-managed fund full of them can be a smart move.VHDYX tracks the FTSE High Dividend Yield Index, which consists of 400 stocks of U.S. companies that pay larger-than-average dividends like JNJ, JPM and Exxon Mobil (NYSE:XOM). Vanguard Health Care (VGHCX)Expenses: 0.34% Minimum Investment: $3,000In times of uncertainty and market volatility, holding a defensive sector fund, such as Vanguard Health Care (MUTF:VGHCX) can be a smart move for diversifying a portfolio.Source: Shutterstock Although healthcare stock prices won't necessarily climb while those of major market indices fall, they do tend to hold their value better than other sectors during corrections. And if stocks are positive in 2019, your health sector fund can still capture that upside. * 7 Stocks to Sell Amid an Escalating Trade War Another benefit of holding VGHCX in what may be a risk-off environment is that the portfolio is light on the riskier biotechnology stocks. Most of the portfolio consists of managed care and big pharma names like UnitedHealth Group (NYSE:UNH), AstraZeneca (NYSE:AZN) and Bristol-Myers Squibb (NYSE:BMY). Vanguard Ultra-Short-Term Bond (VUBFX)Expenses: 0.20% Minimum Investment: $3,000If the Fed resumes its rate hikes, one of the best bond funds to hold will be Vanguard Ultra-Short-Term Bond (MUTF:VUBFX).Source: Shutterstock An ultra-short-term bond fund like VUBFX is a smart choice for investors who want to minimize interest-rate risk or for those looking for opportunities to get greater yields than money market funds.The reason why short-term bond funds can be smart in a rising-rate environment is that prices for longer maturities fall harder than shorter maturities. This is because bond investors don't want the older, lower-yielding bonds when the newer, higher-yielding bonds are available. Vanguard Inflation-Protected Securities (VIPSX)Expenses: 0.2% Minimum Investment: $3,000Bonds prices tend to fall in inflationary environments but a good TIPS fund like Vanguard Inflation-Protected Securities (MUTF:VIPSX) can perform relatively well in such an environment.Source: Shutterstock Treasury inflation-protected securities, aka TIPS, are Treasury bonds in which the principal value adjusts up or down based on inflation, as measured by the CPI. * 5 Safe Stocks to Buy This Summer While stocks and some bond funds can lose in an inflationary/rising-rate environment, funds like VIPSX can eke out gains. Keep in mind, however, that TIPS funds can still decline in value when rates are rising, although not typically as much as funds that invest in conventional bonds. Vanguard Prime Money Market (VMMXX)Expenses: 0.16% Minimum Investment: $3,000In an environment where neither stocks nor bonds look attractive, investors are wise to allocate a portion of their portfolio to highly liquid money market Vanguard funds like Vanguard Prime Money Market (MUTF:VMMXX).Source: Shutterstock Rising rates are not good for equities or fixed income. However, higher rates do generally increase the yields for money market funds. Therefore, a diversified Vanguard portfolio in 2019 will include VMMXX.VMMXX currently has a compound yield of 2.49% and beat the major indices for both stocks and bonds last year.As of this writing, Kent Thune did not personally hold a position in any of the aforementioned securities, although he holds VWINX in some client accounts. Under no circumstances does this information represent a recommendation to buy or sell securities. More From InvestorPlace * 2 Toxic Pot Stocks You Should Avoid * 7 Stocks That Should Be Worried About a Data Dividend * 5 Cheap ETFs Worth Considering * 7 Cheap Stocks Under $5 That Could Soar Compare Brokers The post 7 Best Vanguard Funds for 2019 appeared first on InvestorPlace.
When most investors think about Vanguard funds, they do so from a point of indexing. After all, John Bogle and Vanguard created the concept of indexing and showed the world it can lead to overall portfolio outperformance and better outcomes. So it's no wonder why now billions of dollars sit in funds like the Vanguard S&P 500 ETF (NYSEARCA:VOO) and Vanguard funds are synonymous with indexing.But the asset manager is more than a one-trick index fund pony. Much more.The truth is, the firm runs one heck of an active shop as well. There are plenty of active Vanguard funds that offer market-beating performance, high long-term returns and the low costs that made Vanguard famous. And it's because of that low-cost mantra that many of the firm's actively managed mutual funds can and do outperform their benchmarks. For investors, strictly focusing on the firm's passive side could be a big mistake.InvestorPlace - Stock Market News, Stock Advice & Trading Tips * 10 Great Stocks to Buy on Dips But with over 190 different investment choices -- both passive and active -- how do you know which Vanguard funds are right for you? Luckily, we've done some of the leg work for you here at InvestorPlace. With that, here are five active Vanguard funds worth buying today. Vanguard PRIMECAP Fund Admiral Shares (VPMAX)Source: Shutterstock Expense Ratio: 0.31% annually, or $31 per $10,000 invested. Minimum Investment: NoneWhen it comes to active Vanguard funds, the Vanguard PRIMECAP Fund Admiral Shares (MUTF:VPMAX) could be the crown jewel under its umbrella. VPMAX has long been one of the best-performing active stock funds in history, and that performance continues to this day. Despite its nearly $64 billion in assets, the fund is still able to generate high returns. That's due to its strategy.Managers at VPMAX focus on large- and mid-cap stocks that trading at bargain prices, but have a specific growth catalyst that could propel them forward. This includes everything from buyout potential to new products or restructuring efforts. Moreover, the fund tends to hold these stocks for the long haul, with an average of 12 years. Finally, those $64 billion in assets tend to be very concentrated. Often the 10 holdings represent 30%-40% of the fund's total assets. Currently, VPMAX only holds 140 total stocks, with Google (NASDAQ:GOOG, NASDAQ:GOOGL) and FedEx (NYSE:FDX) among its top holdings.The proof for this active Vanguard fund is in the pudding. VPMAX has managed to return more than 17% annually over the last decade. This beats the S&P 500 by a full two percentage points every year. Since its inception in the 1980s, VPMAX has managed to post a nearly 11% annual return.And while VPMAX is closed to new investors directly, the fund can still be bought via many 401k plans. If it is available to them, investors should jump on the opportunity. Expenses are a dirt-cheap 0.31%, or $31 per $10,000 invested. Vanguard International Growth (VWIGX)Source: Shutterstock Expense Ratio: 0.45% Minimum Investment: $3,000International markets are often fertile ground for active stock pickers as less attention is paid to them by big Wall Street analysts. And Vanguard has been quite successful in this area. The Vanguard International Growth (MUTF:VWIGX) is the prime example.Run by two of the top international global investing groups -- Baillie Gifford and Schroder's -- VWIGX combs both developed and emerging markets for growth-styled stocks. Baillie Gifford, which controls about 60% of assets, tends to look for faster-growing companies, while Schroder's will look for those growth stocks trading at bargain prices. The managers are also allowed to move up and down the entire market-cap ladder to find selections.This strategy has allowed VWIGX to crush the competition. You get both growth and some value tied to it. The fund has outperformed both developed- and emerging-market international indexes as well as other mutual funds in its category. Moreover, the fund has held up better in the recent market wonkiness than its peers as well. However, VWIGX has provided a more volatile ride, due in part to larger weightings in emerging markets. * 7 Strong Buy Stocks That Tick All the Boxes But for investors with a long-term timeline, the extra volatility is worth it. Over the last decade, the fund has managed to turn a $100,000 investment into nearly $300,000. Not too shabby for an active fund. Vanguard Short-Term Investment-Grade (VFSTX)Source: Shutterstock Expense Ratio: 0.2% Minimum Investment: $3,000Some of the best active Vanguard funds can be found on the fixed-income side. The firm's active bond offerings have long allowed investors to get a better yield and returns than many of its indexed products like the Vanguard Total Bond Market ETF (NASDAQ:BND).A great example is the Vanguard Short-Term Investment-Grade Fund Investor Shares (MUTF:VFSTX).The fund focuses its attention on short-term and intermediate-term investment-grade fixed income securities. That can include Treasury bonds and corporate securities. What makes it a better fund than its strictly indexed sister -- the Vanguard Short-Term Bond Index Fund (MUTF:VBIRX) -- is that VFSTX holds a slightly higher concentration of corporate bonds versus Treasuries. This allows the active fund to produce a slightly high yield -- currently 2.7% for the 30-day SEC yield and 3% for the distribution yield. However, the focus on corporate debt doesn't mean that there is a ton of added risk to the fund.For investors looking for a cash alternative, this is great news, especially, if you are willing to take on just a tad more risk.The results of this strategy have been positive. VFSTX has been able to generate a nearly 6% return since its inception in the 1980s and has been pretty steadfast over that time. And with an expense ratio of just 0.2%, VFSTX is as cheap as many of Vanguard index funds. Vanguard Health Care Fund Investor Shares (VGHCX)Source: Shutterstock Expense Ratio: 0.38% Minimum Investment: $3,000Hidden in the garden of the active Vanguard funds happen to be some of the best sector-specific mutual fund options on the whole planet. That includes the top-rated, stellar performer -- the Vanguard Health Care Fund Investor Shares (MUTF:VGHCX).Since 2012, manager Jean Hynes has successfully guided VGHCX on its path and has continued its legacy of great performance. Healthcare continues to be a diverse sector, and Hynes has focused her search for great stocks on several key trends in the industry. This includes our overall aging population, delivery of healthcare, growth in emerging markets and the revolution in biology/genomics. This has created a much more global portfolio than previous allocations for VGHCX. Hynes also runs a pretty concentrated portfolio of her best ideas. Currently, the fund holds just 88 stocks. * 7 Energy Stocks to Buy to Light Up Your Portfolio However, this hasn't dampened the performance of this active Vanguard fund. VGHCX has managed to crush its benchmark over the last decade by more than 3 percentage points per year, and that performance has come in good and bad markets. With healthcare getting a tad rocky lately, Hynes' expertise should help guide the fund through any malaise.All in all, when it comes to active Vanguard funds, VGHCX is simply one of the best. Vanguard STAR Fund (VGSTX)Source: Shutterstock Expense Ratio: 0.31% Minimum Investment: NoneOne of Vanguard's missions is helping investors of any size get started on the journey to saving. And while many Vanguard funds require $3,000 or even $10,000 initial investments, the active Vanguard STAR Fund (MUTF:VGSTX) features a low investment minimum of $0. And investors get a lot for that little starting price.VGSTX is a balanced fund and holds stocks, bonds and short-term investments designed to provide long-term growth of capital. Currently at a 70/20/10 mix. In the end, it's designed to be a one-stop shop for investors. And given its low initial investments, the fund makes an ideal way for savers just starting out or those looking to provide gifts to children/grandchildren.But don't let the goofy name or low minimums fool you. The STAR fund is really a star in Vanguard's active line-up.Since its inception in 1985, VGSTX has managed to produce a 9.85% annual total return. Over the last decade, it's managed to produce a 10.88% annual total return. That's not too shabby for a fund holding stocks, bonds, and other assets. It shows that Vanguard still takes the fund seriously. Helping guide that overall return is its low expense ratio -- currently at 0.31%. That's about half of what you'll pay for similar funds at other active shops.For those looking for a no-nonsense total portfolio, VGSTX is a serious contender among active Vanguard funds.At the time of writing, author Aaron Levitt did not hold a position in any fund mentioned. More From InvestorPlace * 2 Toxic Pot Stocks You Should Avoid * 7 Dangerous Dividend Stocks to Stay Far Away From * 7 Tips for New Investors Young and Old * 10 Great Stocks to Buy on Dips Compare Brokers The post 5 Active Vanguard Funds That You Have to Own appeared first on InvestorPlace.
Vanguard, with more than $5 trillion in global assets under management, is the world's largest mutual fund provider - and for good reason.Vanguard funds pioneered index investing and, since its founding in the 1970s by the late Jack Bogle, have emphasized low costs. Organized like a mutual insurance company, Vanguard's funds are owned by fund shareholders and run "at-cost." There's no need to turn a profit to satisfy outside investors.Any time I'm tasked with covering Vanguard funds, I'm a happy guy. Very few Vanguard funds haven't done right by investors, but Vanguard is especially good for those in retirement. Retirees, after all, don't want to take outsize risks in their investing, and Vanguard's managers aren't encouraged to take big gambles. Low costs remove a lot of the pressure on managers to take extra risk in the hopes of squeezing out a little more profit.Here are my five best Vanguard funds for retirees. This list heavily emphasizes active management (but I do think highly of some Vanguard index funds). Several of my picks also are recommended by Dan Wiener, editor of the The Independent Adviser for Vanguard Investors newsletter.Says Wiener: "Find a good manager at Vanguard, and you'll find a fund that will outperform its benchmark and comparable Vanguard index funds." SEE ALSO: The 25 Best Low-Fee Mutual Funds to Buy Now
Following Medtronic's encouraging earnings results, investing in health care mutual funds with a significant holding in the company will be prudent
There is no “one-size-fits-all” approach to retirement investing. Most money managers will just throw you into an asset allocation involving stocks and bonds, with an emphasis on bonds and fixed income, and leave it at that. The problem is that all investing, including retirement investing, is holistic.
Mutual funds have gotten passed over in recent years, as the investing world was taken by storm by exchange-traded funds. Many mutual funds have exceptional management, so much so that the funds are worth buying and holding onto for decades. My stock advisory newsletter, The Liberty Portfolio, looks at ETFs but also purchases some of the best mutual funds in the entire fund universe.