Top 5 Vanguard Mutual Funds

The following article will provide top 10 popular Vanguard Mutual Funds list including stock and bond fund. The list is as follows: Vanguard Total Stock Market,Total Bond Market Index, Emerging Markets Stock Index, Vanguard Wellington and more. Top 5 Vanguard Mutual Funds are:
  1. Vanguard Total Stock Market - VTSMX
  2. Vanguard 500 Index Fund - VFINX
  3. Vanguard Total Bond Market Index - VBMFX
  4. Vanguard Emerging Markets Stock Index
  5. Vanguard Wellington

Top 5 Vanguard Mutual Funds1. Vanguard Total Stock Market (VTSMX)

This Vanguard Total Stock Market fund has $190 billion total net assets. As part of index fund, this large blend mutual fund has an expense ratio of 0.17%. The annual turnover holding rate is 5%. It is rated with 4 stars rating and gold rating by Morningstar. This fund is passively managed by Gerard C. O'Reilly. This domestic stock fund has returned 19.66% over the past 3 year, 1.27% over the past 5 year, and 4.82% over the past 10 year.

2. Vanguard 500 Index Fund (MUTF: VFINX)

This Vanguard 500 index fund's objective is to track the performance of he Standard & Poor's 500 index. This large blend fund has total net assets of $114 billion. The expense ratio is 0.17% per year. It also has a yield of 1.75%. Michael H. Buek is the fund manager. Investor can start buying this fund with $3,000 minimum initial investment. As of January 2012, the top 5 stocks in its assets are: Exxon Mobil Corporation, Apple Inc, International Business Machines Corp, Chevron Corp, and Microsoft Corp.

3. Vanguard Total Bond Market Index (Ticker: VBMFX)

Rated with gold rating, this Vanguard Total Bond Market Index fund is another popular mutual fund offered by Vanguard. It has an expense ratio of 0.22%. This intermediate term bond fund has a yield of 2.98%. The average effective duration is 5 years and the average effective maturity is 7.2 years. Managed by Kenneth Volpert, this bond mutual fund has returned 7.68% over the past year, 6.89% over the past 3year, and 5.46% over the past decade. As of January 2012, the top 5 sectors are U.S. Treasury (35.65%), Agency MBS Pass-Through (25.60%), Corporate Bond (20.63%), U.S. Agency (4.15%), and Other Government Related (1.95%).

Reasons to buy

If you are interested in Vanguard Brokerage Services account to buy ETF, please check my previous article. There are several reasons why you should consider a Vanguard:
  1. Vanguard is owned by its shareholders (i.e. not for profit company)
  2. Most of the products whether ETFs or Mutual Funds have the lowest expenses in industry
  3. As an investor, you can have many products to choose from whether they are stocks funds or bond funds.
  4. Most of the fund follows index and passively managed which can provide a way to follow the market closely. There is less second guessing by its fund manager.
Disclosure: No Position updated on 4/20/2012


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