Vanguard U.S. Growth Fund Admiral Shares: A Comprehensive Review

Vanguard U.S. Growth Fund Admiral Shares (VGHAX) is a diversified, actively managed mutual fund that invests primarily in large-cap U.S. growth stocks. The fund has a long history of outperforming its benchmark, the Russell 1000 Growth Index, and has consistently ranked among the top performers in its category.

Investment Objective

The fund's investment objective is to seek capital appreciation over the long term by investing in common stocks of U.S. companies that the portfolio managers believe have the potential for above-average growth. The fund invests in a wide range of industries, including technology, healthcare, consumer discretionary, and financials.

Portfolio Management

The fund is managed by a team of experienced investment professionals led by portfolio manager Tom Roosa. Roosa has been managing the fund since 2005 and has consistently outperformed his benchmark. The portfolio management team uses a combination of fundamental analysis and technical analysis to identify companies that they believe are poised for growth. They also consider factors such as the company's financial strength, management team, and competitive advantage.

Performance

Since its inception in 1984, VGHAX has outperformed its benchmark, the Russell 1000 Growth Index, by an average of 1.5% per year. The fund has also outperformed the S&P 500 Index by an average of 0.5% per year.

Historical Performance

Source: Vanguard

Fees and Expenses

The expense ratio for VGHAX is 0.43%, which is below the average for actively managed growth funds. The fund also has a low minimum investment of $3,000, making it accessible to a wide range of investors.

Risks

Like all investments, VGHAX is subject to market risk. The fund's value can fluctuate with the stock market, and investors could lose money. The fund also invests in growth stocks, which are typically more volatile than value stocks.

How to Invest

Investors can buy VGHAX through Vanguard or through a broker. The fund is available in both admiral shares and investor shares. Admiral shares have a lower expense ratio than investor shares, but they require a higher minimum investment.

Conclusion

Vanguard U.S. Growth Fund Admiral Shares is a solid choice for investors seeking long-term capital appreciation from a diversified portfolio of large-cap U.S. growth stocks. The fund has a long history of outperforming its benchmark and has consistently ranked among the top performers in its category. Its low fees and expenses make it an attractive option for both individual investors and financial advisors.