3 Top Vanguard Mutual Funds to Keep an Eye on

The Federal Open Market Committee (FOMC), in a unanimous voting, has slashed the benchmark interest rate by 25 basis points, bringing down key interest rates in the range of 4.50-4.75%. This, along with Trump winning the 2024 U.S. Presidential Election, has cheered market participants. Investors are expecting a further lowering of taxes and deregulation.Domestic macroeconomic data remains promising. The personal consumption expenditures (PCE) index for September came in at 2.1% annually, closer to the Federal Reserve's 2% target. Gross domestic product grew at 2.8% annually in third-quarter 2024. Also, consumer spending rose 3.7% annually, the highest since the first quarter of 2023. However, easing jobs market data has raised fresh concerns about the health of the economy, even though the unemployment rate remains steady at 4.1% in September.In such a situation, mutual fund investing can help those who wish to diversify their portfolio among various asset classes but lack professional expertise in managing funds. Vanguard mutual funds like Vanguard Energy VGENX,Vanguard Growth and Income Fund VQNPX and Vanguard Selected Value VASVX should be good choices since they provide low-cost, uncomplicated equity, fixed-income and multi-asset funds that can help investors meet their goals.These funds have wide exposure in sectors like finance, industrial cyclical, technology, retail trade, non-durable, and health since they have given a positive return and are expected to perform well in the near future.Why Invest in Vanguard Mutual Funds?Vanguard, one of the world’s largest asset management corporations, was founded by John C. Bogle on May 1, 1975. Headquartered in Vally Forge, PN, the company had $8 trillion in assets under management globally till Dec. 31, 2023. Vanguard had more than 20,000 employees worldwide and offered 210 funds in the United States and 216 in foreign markets to 50 million investors as of the same date.Vanguard is owned entirely by funds, a unique feature among mutual fund firms. According to the company, this structure allows management to focus more on shareholder interests. Among the most significant advantages, Vanguard claims to offer low-cost, no-load funds. This means that the fund doesn’t charge investors when fund shares are being bought or sold.These funds boast a Zacks Mutual Fund Rank #1 (Strong Buy), have positive three-year and five-year annualized returns, minimum initial investments within $5000, and carry a low expense ratio of less than 1%. Mutual funds, in general, reduce transaction costs and diversify portfolios without an array of commission charges mostly associated with stock purchases (read more: Mutual Funds: Advantages, Disadvantages, and How They Make Investors Money).Vanguard Energy fund invests most of its net assets in common stocks. VGENX advisors generally invest in companies that are principally engaged in the energy industry, like exploration, production, and transmission of energy or fuels, manufacturing and servicing of products required for energy research, energy conservation and pollution control.G. Thomas Levering has been the lead manager of VGENX since Jan. 15, 2020. Most of the fund’s exposure was in companies like Exxon Mobil (9.6%), Shell PLC (9.6%), and Phillips 66 (4.4%) as of July 31, 2024.VGENX’s three-year and five-year annualized returns are 17.9% and 7.6%, respectively. VGENX has an annual expense ratio of 0.44%.To see how this fund performed compared to its category and other 1, 2 and 3 Ranked Mutual Funds, please click here.Vanguard Growth and Income Fund invests most of its net assets in stocks that provide dividend income as well as the potential for capital appreciation. VQNPX advisors use quantitative approaches to select a broadly diversified group of stocks with investment characteristics like those of companies listed on the S&P 500 Index but are expected to provide a higher total return than that of the index.Hal W. Reynolds has been the lead manager of VQNPX since Sept. 30, 2011. Most of the fund’s holdings were in companies like Microsoft (6.7%), NVIDIA (6.6%) and Amazon.com (5.2%) as of June 30, 2024.VQNPX’s three-year and five-year annualized returns are 12% and 15.8%, respectively. VQNPX has an annual expense ratio of 0.34%.Vanguard Selected Value fund invests most of its net assets in common stocks of mid-cap domestic companies, which, according to its advisors, are undervalued and often have an above-average dividend yield. VASVX advisors consider undervalued stocks as those that are out of favor with investors and are trading at below-average prices in relation to measures such as earnings and book value.Richard Lawrence Greenberg has been the lead manager of VASVX since Feb. 25, 2005. Most of the fund’s exposure was in companies like AerCap (3.1%), Gildan Activewear (1.8%) and TE Connectivity (1.5%) as of July 31, 2024.VASVX’s three-year and five-year annualized returns of almost 11.6% and 13.3%, respectively. VASVX has an annual expense ratio of 0.43%.Want key mutual fund info delivered straight to your inbox?Zacks' free Fund Newsletter will brief you on top news and analysis, as well as top-performing mutual funds, each week. Get it free >>Free: 5 Stocks to Buy As Infrastructure Spending SoarsTrillions of dollars in Federal funds have been earmarked to repair and upgrade America’s infrastructure. In addition to roads and bridges, this flood of cash will pour into AI data centers, renewable energy sources and more.In, you’ll discover 5 surprising stocks positioned to profit the most from the spending spree that’s just getting started in this space.Download How to Profit from the Trillion-Dollar Infrastructure Boom absolutely free today.Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Get Your Free (VQNPX): Fund Analysis Report Get Your Free (VGENX): Fund Analysis Report Get Your Free (VASVX): Fund Analysis ReportTo read this article on Zacks.com click here.Zacks Investment ResearchWeiter zum vollständigen Artikel bei Zacks Weiter zum vollständigen Artikel bei Zacks