Vanguard Star Fund

Class Inv (VGSTX)
Scorecard
4 / 5 Stars
Lipper
4 4 3 3
Zacks Investment Research
2 (Buy)
Standard & Poor's
5 / 5 Stars
TheStreet.com
B- (Buy)

#12 in Moderate Allocation

U.S. News evaluated 247 Moderate Allocation 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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Performance

The fund has returned 16.45 percent over the past year, 10.07 percent over the past three years, 16.76 percent over the past five years, and 7.10 percent over the past decade.

Trailing Returns Updated 02.28.2014
Year to date 2.2%
1 Year 16.4%
3 Years (Annualized) 10.1%
5 Years (Annualized) 16.8%
10 Years (Annualized) 7.1%

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Summary

Vanguard STAR is a well-diversified and balanced portfolio consisting of Vanguard bond and equity funds. 

As of March 05, 2014, the fund has assets totaling $18.01 billion. Its portfolio consists of 11 large Vanguard funds: two bond funds, eight equity funds, and one short-term investment fund.

As a “fund of funds,” Vanguard STAR owns a diverse set of funds that together contain more than 1,600 stocks. The fund is heavier on international exposure than its peers, as about 13 percent of its assets are held in the Vanguard International Value and Vanguard International Growth funds. Vanguard STAR’s domestic stock funds also have moderate overseas investments. Among stock funds, STAR’s growth funds outperformed its value funds in the United States and abroad in 2009. The fund has returned 16.45 percent over the past year and 10.07 percent over the past three years.

The fund has also earned top-quintile five-, 10-, and 15-year returns and has average volatility and low expenses, according to Morningstar. “This fund is a terrific option for investors who believe in active management and are seeking lots of diversification in one package,” says Morningstar. The fund has returned 16.76 percent over the past five years and 7.10 percent over the past decade.

Investment Strategy

The fund invests 60 to 70 percent of its assets in eight stock funds, 20 to 30 percent of its assets in two bond funds, and 10 to 20 percent of its assets in a short-term bond fund.

Role in Portfolio

Morningstar calls the fund a core holding, saying, “This fund is designed for investors seeking to build a well-diversified portfolio in a single shot. It is a good choice for the bulk of such investors’ portfolios. Aggressive investors, or those wishing to control their own asset allocations, should look elsewhere, but it’s a terrific option for the hands-off investor.”

Management

Duane Kelly has been the day-to-day manager of the fund since July 2009.

Fees

Vanguard Star Fund has an expense ratio of 0.00 percent.

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Risk

The fund’s bond and short-term investment holdings help reduce the volatility associated with its stock holdings.

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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 3 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 4 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 2014-03-12

The fund's Value Line Risk Rank, a measure of volatility, is 2 on a scale of 1 to 5, with 1 being the least volatile and 5 the most.

Value Line 2014-03-12

This fund received the Gold award for the Blended Fund of Funds category in Standard & Poor’s 2010 Mutual Fund Excellence Awards.

Standard & Poor's 2010-11-01

In the annual Lipper/Barron’s Fund Families Survey for 2009, Vanguard ranks 40th out of 61 fund families surveyed.

2010-02-17

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 2010-02-17

In the annual Lipper/Barron’s Fund Families Survey for 2009, Vanguard ranks 40th out of 61 fund families surveyed.

2010-02-17

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 2010-02-17