Investing in Vanguard Mutual Funds
Investing in Vanguard Mutual Funds is different than with any other mutual fund company. The company itself is owned by the funds and not the corporation. The corporation is funded by the funds that contribute to the cost of the management, marketing, and distribution process of the company.
Vanguard was started back in 1975 by John C. Bogle and he is given credit with the creation of the first index fund that was made available to individual investors. Shortly after the creation of this company, the brokerage firm of Vanguard changed into a no load mutual fund firm. This enabled investors to buy and sell shares without having to pay a sales commission or load. Today, they handle over one trillion dollars of investors’ money.
This company has over 500 Vanguard funds in which to choose from. There are both short term and long term investments, but the philosophy is to encourage long term investment. The types of investments are mutual funds and ETFs.
The performance of the mutual funds has outperformed their competitors by 75% over the past decade. Most of these funds are diverse in their investment philosophy which is why so many have average or below average risk ratings.
There are sector funds that concentrate their investments in just one sector like Gold, metal, or tech stocks, but with the increased risk comes the chance for increased revenue. One of these is the mutual fund for the real estate sector with a ticker symbol of VGSIX. Last year’s return was 97.82%, with a ten year return of 10.50%.
An example of a diverse mutual fund from Vanguard is the total stock fund with a ticker symbol of VTSMX. In its holdings are over 3000 companies stocks that cover every market. It had a return last year of 56.25% and a total return, since its inception in 1992, of 7.91%.
For individuals Investing in Vanguard Mutual Funds is the safest way to venture but always remember there is some risk with any investment.
For more reference about investments from Vanguard on this site please view Vanguard Dividend Growth Fund Review – VDIGX
For additional resources about ETF”s, please view South Korea ETFs which is one our sister site of ETFinvestingblog.com.
Even further resources about mutual funds and other investments from Fidelity on another sister site of ours is mutualfundexplorer.com please view Best Fidelity No Load Mutual Funds.
A stock market resource on investing from another sister site of stockmarketinvestingblog.com is an article on Investing in Lithium Companies which is worth a look at three companies that had return over 500% last year.
We strive to bring you the latest and most accurate data possible from the home sites of the investment institutions we name. Always remember the bigger the risk, the larger the reward or loss. Invest with caution.