Vanguard Capital Value Fund
Today, we here at Best Mutual Funds Now are having a look at the latest with the Vanguard Capital Value Fund (VCVLX). This is one of Vanguard’s riskier portfolios with a generally better payoff as a return.
The aggressive Capital Value Fund is made up of domestic stock. Vanguard closed this fund to new investors when the market began to take a downturn. It remains closed until Vanguard Capital Value decides the market is up enough to begin anew.
For those still in the Capital Value Fund, however, it appears to be on the upswing now. It’s been a bumpy ride in the short term, however.
Managed by Peter I. Higgins, who’s only been on the job for about 18 months, he nevertheless has over a decade of experience in fund management. The Vanguard Capital Value Fund has gained about 29.62% in the past year, though that only ups the averages from the past three years (3.78%) and five years (2.38%) after the heavy losses in 2008 and early 2009.
The Vanguard Capital Value management has a very low fee compared to the average for this type of Capital Value Fund. Fees are 0.52% versus the average of 1.09%, which is good for the investors given the losses recently.
It’s a volatile fund, being a higher-risk investment portfolio, which is why the Vanguard Capital Value lost so much during the downturn. It’s deviation is higher than average by about 10% (30.5 vs. 20.16 avg).
It remains popular amongst traders, however, with many of its investors choosing to stick with it and wait out the volatility of the current market and let the Vanguard Capital Value Fund try to pay off over the longer term.