4 / 5 Stars
5 5 5 5 4
Zacks Investment Research
5 (Strong Sell)
Standard & Poor's
5 / 5 Stars
#67 in Large Growth
U.S. News evaluated 464 Large Growth Funds. Our list highlights the top-rated funds for long-term investors based on the ratings of leading fund industry researchers.
The fund has returned 27.88 percent over the past year, 16.63 percent over the past three years, 19.33 percent over the past five years, and 8.29 percent over the past decade.
|Trailing Returns||Updated 06.30.2014|
|Year to date||6.9%|
|3 Years (Annualized)||16.6%|
|5 Years (Annualized)||19.3%|
|10 Years (Annualized)||8.3%|
The Vanguard Growth Index Fund looks to mirror the MSCI U.S. Prime Market Growth Index.
As of July 03, 2014, the fund has assets totaling $39.95 billion. Its portfolio consists primarily of blue-chip growth stocks.
In 2008, this index fund's technology exposure to industry giants such as Google and Apple weighed on returns, but the fund began to show life in 2009 when tech made a turnaround. These sector dynamics are not unusual for the fund, which tracks the MSCI U.S. Prime Market Growth Index. Generally, the fund will perform well when big-name companies are on the rise, but it will also share in their pain when markets turn. Says Morningstar, "When large-growth stocks come into favor, this fund will rally, but when small- and mid-cap growth firms pull away, it may lag some of its actively managed peers that have the flexibility to hold more small- and mid-caps..." The fund has returned 27.88 percent over the past year and 16.63 percent over the past three years.
Historically, the fund has moved closely in line with the index it tracks. One notable shakeup came in 2003, though, when the fund changed to its current index, which was new at the time. Until then, it had tracked the S&P/Barra Growth index. MSCI indexes come with lower turnover by creating "buffer zones" that keep companies from bouncing between growth and value indexes. The fund has returned 19.33 percent over the past five years and 8.29 percent over the past decade.
"The fund employs a 'passive management'--or indexing--investment approach designed to track the performance of the MSCI U.S. Prime Market Growth Index, a broadly diversified index predominantly made up of growth stocks of large U.S. companies. The fund attempts to replicate the target index by investing all, or substantially all, of its assets in the stocks that make up the index, holding each stock in approximately the same proportion as its weighting in the index," according to the prospectus.
Role in Portfolio
Morningstar calls it a "supporting player."
Gerard O'Reilly oversees the fund. It is passively managed.
Vanguard Growth Index Fund has an expense ratio of 0.24 percent.
Like any fund that invests in stocks, this one comes with some risks.