Health care is one of the more volatile industries in the market, so investors should be aware of the extra inherent volatility risk of single-sector investing. Vanguard Health Care fund is known as a specialty fund, which is a fund whose investments are concentrated in one industry or sector. Vanguard Health Care Fund (VGHCX, Risk Category #5) Investment is $3,000 for IRAs and general accounts. Its 10-yearĪnnualized return is 13.15% compared with a 9.79% return for its benchmark index. It has earned a 4-star rating from Morningstar. The fund's expense ratio is 0.27%, which is more than two-thirds lower than its peers and extremely With a current yield of only 1.96%, this fund isn't geared as much toward investors seeking current income as it is geared toward investors who want growth of their income stream from year to year. While dividends are the focus of the fund, the yield is not as important as seeing dividend increases by most or all of the companies in the portfolio. The fund invests across all industries and may invest in foreign companies. Vanguard Dividend Growth fund invests primarily in common stocks with the ability and commitment to increase dividends on a regular basis over the long term. Vanguard Dividend Growth Fund (VDIGX, Risk Category #4) The minimum initial investment is $3,000 for Return is 9.26% compared to its benchmark index's 8.31%. It has earned a 5-star rating from Morningstar. Wellington's expense ratio is 0.26%, which is extremely low for an actively managed fund and less Of the few actively managed funds to outperform the S&P-500 Index over the past 10 years. Which means its consistently higher returns are due to superior management. What is remarkable is that annualized returns are comparable or surpass returns of growth or aggressive growth mutual funds with category 4 and 5 risk.īeing actively managed means the portfolio is much more concentrated than passive index funds, Vanguard Wellington Fund has been one of the great mutual funds in the United States and perennially delivers superior returns, so it's no surprise this is one of the best overall Vanguard funds. Vanguard Wellington Fund (VWELX, Risk Category #3) There is a $1,000 minimum initial investment Less the peer group's average expense ratio. Since the fund is passively managed, the expense ratio is extremely low at 0%, which is much Portfolio is the Short-term Inflation-Protected Securities Index fund, which is designed to be a The five index funds that make up the portfolio include modest amounts of international stocks andīonds, so there is a small amount of risk regarding global economics. The asset allocation targets a mix of 70% bonds and 30% stocks. Five separate Vanguard index funds are used to generate the portfolio returns. The focus is on income-producing investments but also has some assets in growth areas. Vanguard's Target Retirement Income fund is geared for investors who are currently retired. Vanguard Target Retirement Income Fund (VTINX, Risk Category #2) All funds are currently open to new investors. Represents the lowest risk of this group with lower expected returns. Category 5 equates to the highest risk but highest potential total return, Category 2 Of Vanguard's risk categories of 2, 3, 4, and 5. With that in mind, here is a short list of the best Vanguard equity funds forĢ022 screened for Morningstar ratings of four or five stars, a minimum investment history of 10 years, and the highest-returning fund in each This is especially true when evaluating investments such as mutual funds becauseĮach investor has their own criteria for what is best for them. Vanguard Target Retirement Income Fund (VTINX), Vanguard Wellington Fund (VWELX), Vanguard Dividend Growth Fund (VDIGX), and Vanguard Health Care Fund (VGHCX).Ĭhoosing the best of anything is by definition subjective. The 3 best performing Vanguard mutual funds for IRA account, retirement, long term investors in the last 10 years: 2022 best Vanguard funds with top Morningstar ratings.