Mid-Cap Growth Fund (VMGRX)

 
 

OPTIONS as of
02/25/2014

Options Expense ratio Minimum
Investor 0.51% $3,000

About our options  


 

Fees

Purchase fee:

A fee charged by some mutual funds when an investor buys shares. This fee is not a sales charge or load because it is paid directly to the fund to offset the costs of trading certain securities.

 None
Redemption fee:

A fee charged by some mutual funds when an investor sells shares. A redemption fee differs from a back-end load because the money is paid back into the fund. Many funds charge redemption fees only when shares are bought and then sold within a specific period of time, generally in an effort to discourage market-timing and short-term trading. Some brokers also charge their clients redemption fees for the sale of securities.

 None

KEY FACTS

Designation: Domestic Mid-Cap Growth
VMGRX
 inception on 12/31/1997
$3.2 billion net assets for
VMGRX
 as of 05/31/2014
115 holdings as of 05/31/2014
Benchmarked to the Russell Midcap Growth Index
Turnover rate (Fiscal year-end  10/31/2013) 83.00%

STYLEBOX

Stock
Portfolio of mid-capitalization growth stocks.



Expected range
Central tendency

About our styleboxes  

Investment approach



  • Mid-cap growth equity portfolio.
  • Seeks long-term capital appreciation.
  • Active, fundamental investment process.  
  • Broadly diversified, multimanager structure.

Total returns

View as:

as of 06/30/2014

30%
25
20
15
10
5
0%
 
 
 
 
 
  1 year 3 year 5 year 10 year Since inception

12/31/1997

NAV 
22.61% 13.76% 20.02% 10.11% 10.60%
Benchmark

Russell Midcap Growth Index

*
26.04% 14.54% 21.16% 9.83%

Note: Fee adjusted for mutual funds where applicable.

* Measures the performance of those Russell Midcap Index companies with higher price/book ratios and higher predicted and historical growth rates.

The performance data shown represent past performance, which is not a guarantee of future results. Investment returns and principal value will fluctuate, so investors' shares, when sold, may be worth more or less than their original cost. Current performance may be lower or higher than the performance data cited.


People and process

Firms

Chartwell Investment Partners, Inc.
William Blair & Company, L.L.C.

Product management

Vanguard Mid-Cap Growth Fund seeks long-term capital appreciation using a multimanager approach that provides exposure to a broad universe of mid-cap growth stocks. The fund’s investment advisors use fundamental, bottom-up stock selection to analyze and identify companies that they believe have outstanding management and catalysts for growth, such as new products, market-share gains, and improving cost structure. Both advisors look for strong earnings-per-share growth and proven and sustainable competitive advantages. Each advisor independently manages its portion of fund assets, using its own research and investment methods.

Firm and manager details  

Sector weightings

  Sector  VMGRX
as of 05/31/2014
Benchmark

Russell Midcap Growth Index

as of 03/31/2014
Information Technology 20.9% 16.3%
Consumer Discretionary 19.8% 24.7%
Industrials 17.8% 15.1%
Health Care 17.3% 13.5%
Financials 10.8% 8.8%
Consumer Staples 5.0% 8.2%
Energy 3.1% 6.4%
Materials 2.7% 5.9%
Telecommunication Services 2.5% 0.7%
Utilities 0.1% 0.4%
Other 0.0% 0.0%
0%
25%
Total 100.0% 100.0%

Sector categories are based on the Global Industry Classification Standard system.

Top 10 holdings as of 06/30/2014

Rank Holding
1 SBA Communications Corp.
2 Vantiv Inc.
3 Keurig Green Mountain Inc.
4 Six Flags Entertainment Corp.
5 Actavis plc
6 MGM Resorts International
7 United Rentals Inc.
8 Thermo Fisher Scientific Inc.
9 O'Reilly Automotive Inc.
10 Equifax Inc.
Top 10 equals 16.6% of net assets

Portfolio holdings may exclude any temporary cash investments and equity index products.

Holdings policy for this fund  

Fundamentals

Stockas of 05/31/2014 VMGRX Benchmark

Russell Midcap Growth Index

Number of stocks 115 507
Median market cap $8.1 billion $11.9 billion
P/E ratio 26.5x 26.5x
P/B ratio 4.0x 4.8x
Turnover rate 83.0% Fiscal year end 10/2013 N/A

Risk and volatility as of 05/31/2014

  VMGRX Benchmark

Russell Midcap Growth Index

R-squared N/A 0.96
Beta N/A 0.94
Alpha 0.04 N/A
Standard deviation 14.57% 15.27%
Sharpe ratio 0.85 0.83

Risk and volatility are based on the share class with the earliest inception date.

Risk measures are calculated from trailing 36-month fund returns relative to the associated benchmarks.

An investment in the fund could lose money over short or even long periods. You should expect the fund’s share price and total return to fluctuate within a wide range, like the fluctuations of the overall stock market. The fund’s performance could be hurt by:

  • Stock market risk: The chance that stock prices overall will decline. Stock markets tend to move in cycles, with periods of rising stock prices and periods of falling stock prices.
  • Investment style risk: The chance that returns from mid-capitalization growth stocks will trail returns from the overall stock market. Historically, mid-cap stocks have been more volatile in price than the large-cap stocks that dominate the overall market, and they often perform quite differently. Mid-cap stocks tend to have greater volatility than large-cap stocks because, among other things, medium-size companies are more sensitive to changing economic conditions.
  • Manager risk: The chance that poor security selection or focus on securities in a particular sector, category, or group of companies will cause the fund to underperform relevant benchmarks or other funds with a similar investment objective.



 
 
 
 

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