Vanguard Mid Cap Index Fund

Scorecard
4 / 5 Stars
Lipper
4 4 4 5 4
Zacks Investment Research
3 (Hold)
Standard & Poor's
5 / 5 Stars
TheStreet.com
A (Buy)

U.S. News evaluated 138 Mid-Cap Blend Funds. Our list highlights the top-rated funds for long-term investors based on the ratings of leading fund industry researchers.

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Note: Profile written for different share class.

Performance

The fund has returned 29.48 percent over the past year, 14.41 percent over the past three years, 27.32 percent over the past five years, and 10.01 percent over the past decade.

Trailing Returns Updated 02.28.2014
Year to date 3.6%
1 Year 29.5%
3 Years (Annualized) 14.4%
5 Years (Annualized) 27.3%
10 Years (Annualized) 10.0%

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Summary

Like the rest of Vanguard’s index offerings, the Vanguard Mid-Cap Index offers a low price tag and consistent approach.

As of March 05, 2014, the fund has assets totaling almost $49.28 billion invested in 378 different holdings. Its portfolio consists primarily of shares of mid-cap companies.

This fund’s strategy is quite straightforward: Through passive management, it looks to mirror the returns of the MSCI U.S. Mid-Cap 450 Index. The index, as its name suggests, is made up of 450 names, and the fund usually owns virtually all of them. The fund looks to give the companies the same weighting that MSCI gives them. While all the companies are in the mid-cap range when they enter the index, MSCI’s use of “buffer zones” means that the fund can own some names that have become either too big or too small to be considered mid caps. Lately, the fund has posted some solid returns, finishing both 2009 and 2010 in the top third of Morningstar’s mid-cap blend category. The fund has returned 29.48 percent over the past year and 14.41 percent over the past three years.

Over time, this fund’s low price tag has factored into its success. For those who prefer exchange-traded funds, Vanguard offers an ETF that tracks the same index. The ETF sports an identical expense ratio. The fund has returned 27.32 percent over the past five years and 10.01 percent over the past decade.

Investment Strategy

The fund invests in the companies that comprise the MSCI U.S. Mid-Cap 450 Index.

Role in Portfolio

Morningstar calls the fund a “supporting player.”

Management

Donald Butler oversees the fund.

Fees

Vanguard Mid Cap Index Fund has an expense ratio of 0.06 percent.

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Risk

Like all stock funds, this one comes with some risks.

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Fund Opinions

The fund's Value Line Overall Rank, a measure of risk-adjusted performance and relative growth in fund returns, is 1 on a scale of 1 to 5, with 1 being the best and 5 the worst.

Value Line 2014-03-12

The fund's Value Line Growth Persistence rank, which awards funds that consistently outperform their broad universes, is 1 for one year, 1 for five years, and 1 for 10 years. Scores are on a 1 to 5 scale, with 1 being the best and 5 the worst.

Value Line 2014-03-12

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 2014-03-12

The fund appears on the 2011 Money 70 list of recommended mutual and exchange-traded funds.

Money 70 2011-01-21

In the annual Lipper/Barron’s Fund Families Survey of 2010, Vanguard ranks 25 out of 57 fund families surveyed.

2011-06-02

Morningstar gives this fund a stewardship rating of B on a scale of A to F, saying: “This isn’t Jack Bogle’s Vanguard, but it’s still a fine steward of shareholders’ wealth. The family’s mutual ownership structure helps it offer low fees and keep investor interests paramount. A blemish-free regulatory record, and loyal fund owners and employees also help make this a trustworthy fund.”

Morningstar 2011-06-02

In the annual Lipper/Barron’s Fund Families Survey of 2010, Vanguard ranks 25 out of 57 fund families surveyed.

2011-06-02

Morningstar gives this fund a stewardship rating of B on a scale of A to F, saying: “This isn’t Jack Bogle’s Vanguard, but it’s still a fine steward of shareholders’ wealth. The family’s mutual ownership structure helps it offer low fees and keep investor interests paramount. A blemish-free regulatory record, and loyal fund owners and employees also help make this a trustworthy fund.”

Morningstar 2011-06-02