Best Vanguard Mutual Funds to Buy Now

Everything you need to know about investing in Vanguard mutual funds, plus the best Vanguard mutual funds to buy now.

May 22, 2023 - 22:30

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Vanguard is one of the world's largest investment management companies, offering a wide range of mutual funds to investors. Vanguard mutual funds are popular because they provide a low-cost way to invest in a diversified portfolio of stocks, bonds, or other assets. In this article, we will take a closer look at Vanguard mutual funds, including their advantages, risks, and alternatives.

Understanding Vanguard Mutual Funds

Vanguard mutual funds are part of the broader mutual fund industry, which allows investors to pool their money together and invest in a variety of different assets. Mutual funds are typically managed by professional portfolio managers who use their expertise to select investments that they believe will perform well. Vanguard, in particular, is known for its low-cost index funds, which seek to replicate the performance of a particular market index.

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Best Vanguard Mutual Funds to Buy as of 4/30/23

TheStreet Ratings model ranks the risk-adjusted returns on all ETFs on a monthly basis. These 10 Vanguard mutual funds are currently ranked highest by TheStreet Ratings' methodology.

Fund Name, Ticker, Overall Rating, (Risk Grade)

Vanguard Global Capital Cycles Inv (VGPMX) - Get Free Report A+ (B-)
Vanguard S&P Mid Cap 400 Value Inst (VMFVX) - Get Free Report A+ (B-)
Vanguard S&P 500 Val Indx Inst (VSPVX) - Get Free Report A+ (B-)
Vanguard Industrials Index Adm (VINAX) - Get Free Report A+ (B-)
Vanguard US Multifactor Admiral (VFMFX) A+ (B-)
Vanguard Mega Cap Value Index I (VMVLX) - Get Free Report A+ (B)
Vanguard Selected Value Inv (VASVX) - Get Free Report A+ (C+)
Vanguard Energy Inv (VGENX) - Get Free Report A+ (C+)
Vanguard Global ESG Select Stk Inv (VEIGX) A+ (C+)
Vanguard Value Index Adm (VVIAX) - Get Free Report A+ (B-)

Advantages of Investing in Vanguard Mutual Funds

One of the primary advantages of investing in Vanguard mutual funds is the diversification they offer. By investing in a single mutual fund, an investor can gain exposure to a wide range of different stocks, bonds, and other assets. This diversification can help to reduce overall risk, as losses in one area of the portfolio can be offset by gains in another.

Another advantage of Vanguard mutual funds is their low cost. Because Vanguard is a mutual company owned by its funds, it operates on a not-for-profit basis and passes along cost savings to its investors. This means that Vanguard mutual funds typically have lower expense ratios than many other mutual funds, which can help investors keep more of their returns. Vanguard mutual funds also offer a range of investment options, from index funds that track the performance of a market index to actively managed funds that seek to outperform the market.

Risks of Investing in Vanguard Mutual Funds

One of the primary risks of investing in Vanguard mutual funds is market risk. Like any investment, mutual funds are subject to fluctuations in the stock and bond markets, which can cause their value to rise or fall. In addition, mutual funds are subject to management risk, which means that poor investment decisions by the portfolio manager can lead to underperformance.

Another risk to consider is liquidity risk. While mutual funds are generally easy to buy and sell, they may not be as liquid as other investments, such as stocks or exchange-traded funds (ETFs). This means that if you need to sell your shares in a mutual fund quickly, you may not be able to get the full value of your investment.

Alternatives to Investing in Vanguard Mutual Funds

Investors looking for alternatives to Vanguard mutual funds have a few options to consider. One alternative is investing in small-cap mutual funds, which focus on investing in small companies with a high growth potential. Another option is investing in Fidelity mutual funds, which offer a range of investment options, including mutual funds, ETFs, and individual stocks. T. Rowe Price mutual funds are another alternative, offering a diverse range of investment options, including mutual funds and target-date retirement funds. Lastly, mutual bond funds are a popular alternative for investors looking to invest in fixed-income securities, offering a steady income stream with a lower risk profile.

The Bottom Line

Vanguard mutual funds are a popular investment option for those looking for a diversified portfolio of assets at a low cost. However, like any investment, they come with risks, including market risk and management risk. Investors should carefully consider their investment goals and risk tolerance before investing in Vanguard mutual funds or any other investment. Alternatives, such as small-cap, Fidelity, T. Rowe, or bond mutual funds may be worth taking a look at depending on your situation.

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