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4 Top-Ranked Vanguard Mutual Funds to Buy Now

Vanguard is one of the world’s largest asset management corporations that manage around $3 trillion in assets. It offers nearly 160 domestic funds and 120 funds for foreign markets (as of Dec 31, 2014). It offers asset management and financial planning services to clients across the world. Unlike other mutual fund companies, Vanguard is owned by the funds themselves, which helps its management focus better on shareholder interests. Among other advantages, it claims to offer low-cost, no-load funds. Vanguard was founded by John C. Bogle in 1975.

Below we share with you four top-rated Vanguard mutual funds. Each has earned a Zacks Mutual Fund Rank #1 (Strong Buy) and we expect the fund to outperform its peers in the future. To view the Zacks Rank and past performance of all Vanguard mutual funds, investors can click here to see the complete list of Vanguard funds .

Vanguard Ohio Long-Term Tax-Exempt (VOHIX) seeks tax-free current income. VOHIX invests a major portion of its assets in municipal bonds that are expected to provide income exempted from federal and Ohio state taxes. VOHIX generally invests in high-quality securities of the Ohio state and local governments and their affiliates. VOHIX is expected to maintain a dollar-weighted average maturity of 10 to 25 years. The Vanguard Ohio Long-Term Tax-Exempt is a non-diversified fund and has a three-year annualized return of 4.5%.

Marlin G. Brown is the fund manager of VOHIX since 2008.

Vanguard Growth & Income Investor (VQNPX) invests in a diversified group of stocks chosen with the help of quantitative analysis. VQNPX seeks stocks that are believed to provide dividend income and have impressive growth prospect and that, as a group, appear likely to provide higher returns than the Standard & Poor's 500 Index while having similar risk characteristics. VQNPX invests a minimum of 65% of its assets in companies included in the index. The Vanguard Growth & Income Investor fund has a three-year annualized return of 12.2%.

As of December 2015, VQNPX held 847 issues with 3.43% of its assets invested in Apple Inc.

Vanguard High-Yield Tax-Exempt (VWAHX) seeks current income exempted from federal personal income taxes. VWAHX invests a large chunk of its assets in municipal securities that are rated investment grade by a nationally recognized statistical rating organization (NRSRO). However, a maximum of 20% of VWAHX’s assets may get invested in securities that are rated below investment grade. The Vanguard High-Yield Tax-Exempt fund has a three-year annualized return of 4.4%.

VWAHX has an expense ratio of 0.20% as compared to the category average of 0.81%.

Vanguard Growth Index Admiral (VIGAX) deploys an indexing investment approach to track the performance of the CRSP US Large Cap Growth Index. The advisor attempts to imitate the index by investing in all the stocks that make up the index. The index measures the investment return of large-cap growth stocks. The Vanguard Growth Index Admiral fund has a three-year annualized return of 12.6%.

Gerard C. O’Reilly is the fund manager of VIGAX since 1994.

To view the Zacks Rank and past performance of all Vanguard mutual funds, investors can click here to see the complete list of funds .

About Zacks Mutual Fund Rank

By applying the Zacks Rank to mutual funds, investors can find funds that not only outpaced the market in the past but are also expected to outperform going forward. Pick the best mutual funds with the Zacks Rank.


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