Vanguard Strategic Equity Fund: A Comprehensive Guide to the VSEVX Fund

Introduction

The Vanguard Strategic Equity Fund (VSEVX) is a diversified stock fund that seeks to provide long-term capital appreciation. It invests primarily in a broad range of domestic stocks, with a focus on large-cap and mid-cap companies. VSEVX is a popular choice for investors seeking a core portfolio holding or as a complement to other equity funds.

Fund Overview

• Fund Name: Vanguard Strategic Equity Fund
• Ticker Symbol: VSEVX
• Expense Ratio: 0.05%
• Minimum Investment: $3,000
• Investment Objective: Long-term capital appreciation
• Strategy: Invests in large-cap and mid-cap domestic stocks

Key Features

• Diversified Portfolio: VSEVX invests in a wide range of stocks across different sectors and industries, providing diversification and reducing risk.
• Low Cost: With an expense ratio of only 0.05%, VSEVX is one of the most cost-effective equity funds in the market.
• Long-Term Focus: The fund's investment horizon is long-term, aiming to generate returns over multiple market cycles.
• Experienced Management: VSEVX is managed by Vanguard, a leading investment management firm with a proven track record.

Performance

Since its inception in 1995, VSEVX has delivered strong returns, outperforming its benchmark index, the Russell 3000 Index, over the long term.

Table 1: VSEVX Performance vs. Benchmark

Investment Strategy

VSEVX employs a value-oriented investment strategy, seeking out stocks that are trading at a discount to their intrinsic value. The fund's managers use a combination of fundamental and quantitative analysis to select companies with strong financial performance, stable earnings, and undervalued valuations.

Pain Points and Motivations

Pain Points:

• Market volatility
• Economic uncertainty
• Inflation

Motivations:

• Long-term capital growth
• Diversification
• Cost-effective investment solution

Common Mistakes to Avoid

• Overreacting to Market Fluctuations: VSEVX is a long-term investment, and investors should avoid making hasty decisions based on short-term market movements.
• Chasing After Past Performance: Past performance is not a guarantee of future results, and investors should always consider their financial goals and risk tolerance before investing.
• Investing Too Much in One Asset Class: VSEVX is a stock fund, and while it can provide strong returns, it is important to diversify your portfolio across different asset classes.

Comparison with Other Equity Funds

Conclusion

Vanguard Strategic Equity Fund (VSEVX) is a well-diversified, low-cost, and long-term equity fund that can serve as a solid core holding in any portfolio. Its proven track record and value-oriented investment strategy make it an attractive option for investors seeking sustainable capital growth.

Appendix

Table 2: Top 10 Holdings

Table 3: Sector Allocation

Table 4: Risk and Return Metrics