Vanguard STAR Fund (VGSTX)
The Vanguard STAR Fund (VGSTX) is a diversified fund that has shown to be a solid long term investment as a large blend type of investment. The investment strategy of this fund is to have a balanced allocation of investments with 60% to 70% of the fund being in stocks, 20% to 30% being in bonds, and 10% to 20% being in short term investments.
As of January 31, 2010, this funds make up was 61.62% stocks, 25.62% bonds, and 12.76% in short term reserves, with an annual turnover ratio of 21% that has $12.7 billion in total assets. As part of its diversity, 16.0% of the fund is invested in foreign stocks. The sectors this fund has investments in are in the Financial with 15.6%, Healthcare with 12.9%, Industrial Materials with 12.8%, Hardware with 11.6%, and Energy with 10.1%.
This fund invests 100% in other Vanguard funds and performance is regulated their returns. The funds that are invested in are the Vanguard Windsor II Fund, the Vanguard Long Term Investment Grade Fund, the Vanguard GNMA Fund, the Vanguard Short Term Investment Grade Fund, Vanguard Windsor Fund, Vanguard PRIMECAP Fund, Vanguard Growth Fund, Vanguard International Growth Fund, Vanguard international Value Fund, and the Vanguard Explorer Fund.
Since this funds inception in March of 1985, it has yielded a return of 9.70% with a one year return of 24.85%. This is an average risk fund with above average returns and has received a 4 star rating form Morningstar.
For that last three years, this funds volatility measurements have been a standard deviation of 14.44 with an R squared of 99 and a Beta of 1.08.
The minimum investment amount is $1000 with 0.00 expenses. The Vanguard STAR Fund (VGSTX) is a safe long term investment that will grow with moderate returns for your investment dollars.