Vanguard Explorer Fund (VEXPX)

Vanguard Explorer Fund (VEXPX) is a domestic stock fund. This Vanguard fund invests in equities of companies with small capitalization.

Vanguard Fund

The investment objective of Vanguard Explorer Fund is to achieve long-term capital appreciation. The mutual fund invests mainly in the stocks of small companies. These companies tend to be unseasoned but are considered by the fund’s advisors to have superior growth potential. Most of these companies often provide little or no dividend income. The fund uses multiple investment advisors.

Vanguard Explorer Fund Profile
Vanguard Explorer Fund - VEXPX | Top Small Growth Mutual Fund
Vanguard fund
  • Fund Inception Date: December 11, 1967
  • Ticker Symbol: VEXPX
  • CUSIP: 921926101
  • Beta (3yr): 1.25
  • Rank in category (YTD): 16%
  • Category: Small Growth
  • Distribution: 0.28%
  • Capital Gains: 0%
  • Expense Ratio: 0.49%
  • Net Assets: $ 10.4 billion
  • Number of Years Up:  34years
  • Number of Years Down: 11 years
  • Annual Turnover Rate: 59%
Updated on July 17, 2013

This Vanguard fund is one of the best mutual funds in Small Growth category. It has total net assets of $10.4 billion. The annual expense ratio is low, 0.49%. The 12-month yield is 0.28%. The management team members are combined from Granahan Investment Management Inc, Vanguard Equity Investment Group and Wellington Management Company.

This Vanguard Explorer Fund uses Russell 2500 Growth Index as its benchmark.  The fund is rated with 3-stars and Neutral rating by Morningstar. As of June 12, 2013, the fund has YTD return of 17.93%. The best 1-year total return within 34 years of positive return was in 2003 with 44.25%. The worst was in 2008 with -40.40%. The fund’s performance based on the load adjusted returns is as below:
  • 1-year: 10.29%
  • 3-year: 15.48%
  • 5-year: 7.16%
  • 10-year: 10.63%
Top Mutual FundThis Vanguard Explorer Fund is available in two classes. The classes are Investor Shares (VEXPX) and Admiral Shares (VEXRX). The minimum initial investment for brokerage account is $3,000. Same amount applies for retirement (IRA) account as well. There is no fee for investing in this fund. The 84 brokerages that sell this fund are TradeStation Securities, JPMorgan, Scottrade Load, Schwab Institutional, Ameriprise Brokerage, T Rowe Price, etc.

The 10 largest holdings of this Vanguard fund represent 8.2% of the total net assets as of April 2013. They are Alliance Data Systems Corp, Cooper Cos Inc, Alkermes plc, TiVo Inc, Covance Inc, Dick’s Sporting Goods Inc, Ultimate Software Group Inc, PTC Inc,  Kennametal Inc and Cadence Design Systems Inc. The top equity sectors are Information Technology (24.20%), Consumer Discretionary (18.90%), Health Care (18.50%) and Industrials (16.80%).

According to the fund’s website, the principal risks of investing in this fund are stock market risk, investment style risk and manager risk.

Disclosure: No Position


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