| Scorecard |
|---|
|
4 / 5 Stars
|
|
Lipper
5
5
5
5
4
|
|
Zacks Investment Research
5
(Strong Sell)
|
|
Standard & Poor's
5 / 5 Stars
|
|
TheStreet.com
A-
(Buy)
|
#69 in Large Value
U.S. News evaluated 328 Large Value Funds. Our list highlights the top-rated funds for long-term investors based on the ratings of leading fund industry researchers.
Performance
The fund has returned 29.85 percent over the past year, 16.72 percent over the past three years, 5.49 percent over the past five years, and 8.20 percent over the past decade.
| Trailing Returns | Updated 05.31.2013 |
|---|---|
| Year to date | 16.1% |
| 1 Year | 29.9% |
| 3 Years (Annualized) | 16.7% |
| 5 Years (Annualized) | 5.5% |
| 10 Years (Annualized) | 8.2% |
Summary
Vanguard Windsor II is a value-oriented fund that has been investing in large-company stocks for almost 25 years. A sixth subadvisor, Sanders Capital Management, will now mange a small portion of the fund's assets.
As of June 05, 2013, the fund has assets totaling $43.01 billion. Its portfolio consists of stocks of large- to mid-capitalization companies.
The fund invests in bargain-priced stocks that have the potential to provide strong long-term growth and income. In the 2008 bear market, the fund was hurt by investments in the banking and consumer finance industries, including Bear Stearns and Citigroup, according to the fund’s annual report. In 2009, the fund posted gains and was boosted by investments in the electrical equipment and machinery industries. It also benefitted from investments in the healthcare sector, particularly large pharmaceutical companies, according to the fund’s semiannual report. The fund has had a rough 2010. Year-to-date through the end of the third quarter, returns have been flat. The fund has returned 29.85 percent over the past year and 16.72 percent over the past three years.
Since the fund’s 1985 inception, management has focused on large-cap value stocks that have higher yields but lower price-to-book ratios than the overall market. The fund has a low turnover rate and is designed to produce solid long-term returns with low volatility. The fund has returned 5.49 percent over the past five years and 8.20 percent over the past decade.
Investment Strategy
The fund has multiple advisors overseen by Vanguard, each of which manages a portion of the fund’s assets. These advisors invest in undervalued stocks, which are stocks that have generally fallen out of favor with investors. Advisors also invest in stocks with trading prices that are below average in relation to such measures as earnings and book value. These stocks often have above-average dividend yields.
Role in Portfolio
Morningstar describes this fund as a core player in a portfolio, saying, “The fund is a great large-cap holding.”
Management
The fund uses a multimanager approach. Each adviser individually runs a portion of the fund’s portfolio under the supervision of Vanguard. The day-to-day management of the fund is overseen by seven managers who are either members of the multiple investment adviser groups or the Vanguard Group. Lead manager James Barrow has been working with the fund since its 1985 inception.
Risk
Historically, mid-cap stocks have been more volatile than large-cap stocks, according to the fund.
Fund Opinions
The fund's Value Line Overall Rank, a measure of risk-adjusted performance and relative growth in fund returns, is 2 on a scale of 1 to 5, with 1 being the best and 5 the worst.
Value Line 2013-06-11
The fund's Value Line Growth Persistence rank, which awards funds that consistently outperform their broad universes, is 3 for one year, 3 for five years, and 3 for 10 years. Scores are on a 1 to 5 scale, with 1 being the best and 5 the worst.
Value Line 2013-06-11
The fund's Value Line Risk Rank, a measure of volatility, is 3 on a scale of 1 to 5, with 1 being the least volatile and 5 the most.
Value Line 2013-06-11
The fund appears on the 2011 Money 70 list of recommended mutual and exchange-traded funds.
Money 70
In the March 2010 edition of The Independent Adviser for Vanguard Investors, Dan Wiener says, "Windsor II's relative performance has improved since the multiple changes that took place in 2007, so maybe there's hope yet. This is a fine, if unexceptional, fund in its current incarnation."
2010-06-02
In the annual Lipper/Barron’s Fund Families Survey for 2009, Vanguard ranks 40th out of 51 fund families surveyed.
Lipper
In the March 2010 edition of The Independent Adviser for Vanguard Investors, Dan Wiener says, "Windsor II's relative performance has improved since the multiple changes that took place in 2007, so maybe there's hope yet. This is a fine, if unexceptional, fund in its current incarnation."
2010-06-02
In the annual Lipper/Barron’s Fund Families Survey for 2009, Vanguard ranks 40th out of 51 fund families surveyed.
Lipper
In the March 2010 edition of The Independent Adviser for Vanguard Investors, Dan Wiener says, "Windsor II's relative performance has improved since the multiple changes that took place in 2007, so maybe there's hope yet. This is a fine, if unexceptional, fund in its current incarnation."
2010-06-02
