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Vanguard - Investment management

   

Given our long-term focus, disciplined investment approach, and track record for evaluating investment managers, it's not surprising that Vanguard funds have typically outperformed their Lipper peer group averages.

Our asset management capabilities are a crucial part of our resources. Our system includes:

  • Internal management, with one of the world's most respected organizations for index equity, index fixed income, active fixed income, and target-date funds.
  • External management, with many of our active equity investments subadvised by premier firms from around the globe.
  • A rigorous oversight process that uses a multi-level check-and-balance system and includes our board of directors and Portfolio Review Group.

Our disciplined system helps ensure that Vanguard investments reflect consistency and adherence to style. We strive to find the best manager for the mandate—whether it's an in-house or carefully selected external advisor.

Vanguard funds that outperformed their peer group averages

(Periods ended December 31, 2013)

  1 year 3 years 5 years 10 years
All Vanguard funds: 65%
(227 of 351 Vanguard funds outperformed their peers; 19,103 funds in peer category for this period) 
83%
(275 of 330 Vanguard funds outperformed their peers; 16,257 funds in peer category for this period) 
71%
(189 of 266 Vanguard funds outperformed their peers; 13,655 funds in peer category for this period) 
92%
(157 of 170 Vanguard funds outperformed their peers; 7,545 funds in peer category for this period)
Money market funds: 90%
(9 of 10 Vanguard funds; 960 funds in peer category)
100%
(10 of 10 Vanguard funds; 927 funds in peer category)
100%
(10 of 10 Vanguard funds; 870 funds in peer category)
100%
(10 of 10 Vanguard funds; 666 funds in peer category)
Stock funds: 64%
(141 of 220 Vanguard funds; 11,281 funds
in peer category)
86%
(178 of 208 Vanguard funds; 9,565 funds in peer category)
78%
(130 of 166 Vanguard funds; 8,269 funds in peer category)
89%
(81 of 91 Vanguard funds; 4,598 funds in peer category)
Bond funds: 61%
(56 of 92 Vanguard funds; 3,514 funds in peer category)
74%
(62 of 84 Vanguard funds; 3,064 funds in peer category)
41%
(26 of 63 Vanguard funds; 2,164 funds in peer category)
96%
(49 of 51 Vanguard funds; 1,557 funds in peer category)
Balanced funds: 72%
(21 of 29 Vanguard funds; 3,348 funds in peer category)
89%
(25 of 28 Vanguard funds; 2,701 funds in peer category)
85%
(23 of 27 Vanguard funds; 2,352 funds in peer category)
94%
(17 of 18 Vanguard funds; 724 funds in peer category)

Get the most recent performance data for all Vanguard funds

Notes:

  • All investing is subject to risk, including the possible loss of the money you invest.
  • Bond funds are subject to the risk that an issuer will fail to make payments on time and that bond prices will decline because of rising interest rates or negative perceptions of an issuer's ability to make payments.
  • An investment in a money market fund is not insured or guaranteed by the Federal Deposit Insurance Corporation or any other government agency. Although a money market fund seeks to preserve the value of your investment at $1 per share, it is possible to lose money by investing in such a fund.
  • Diversification does not ensure a profit or protect against a loss.
  • The competitive performance data shown represent past performance, which is not a guarantee of future results. The performance of an index is not an exact representation of any particular investment, as you cannot invest directly in an index.
  • Market data source: Vanguard, based on market benchmarks. U.S. stocks represented by the Dow Jones U.S. Total Stock Market Float Adjusted Index. International stocks represented by the FTSE Global All Cap ex US Index. Bonds represented by the Barclays U.S. Aggregate Bond Index.
  • For the 1-year period ended September 30, 2013, 10 of 10 Vanguard money market funds, 53 of 89 Vanguard bond funds, 21 of 29 Vanguard balanced funds, 117 of 220 Vanguard stock funds, or 201 of 348 Vanguard funds outperformed their Lipper averages. For the 3-year period ended September 30, 2013, 10 of 10 Vanguard money market funds, 66 of 83 Vanguard bond funds, 25 of 28 Vanguard balanced funds, 166 of 187 Vanguard stock funds, or 267 of 308 Vanguard funds outperformed their Lipper averages. For the 5-year period ended September 30, 2013, 10 of 10 Vanguard money market funds, 43 of 63 Vanguard bond funds, 24 of 27 Vanguard balanced funds, 138 of 165 Vanguard stock funds, or 215 of 265 Vanguard funds outperformed their Lipper averages. For the 10-year period ended September 30, 2013, 10 of 10 Vanguard money market funds, 46 of 50 Vanguard bond funds, 12 of 13 Vanguard balanced funds, 81 of 90 Vanguard stock funds, or 149 of 163 Vanguard funds outperformed their Lipper averages. Results will vary for other time periods. Only funds with a minimum 1-, 3-, 5-, or 10-year history, respectively, were included in the comparison. (Source: Lipper, a Thomson Reuters company.) Note that the competitive performance data shown represent past performance, which is not a guarantee of future results and that all investments are subject to risks. For the most recent performance, visit our website at vanguard.com/performance.
 

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