T. Rowe Price Growth Stock Fund (PRGFX). I’ve held it for years and it’s been a superb performer. It’s up 20% YTD on top of a 45% gain in 2023; a rebound from a terrible 2022. Over 15 years, the fund has returned 15.5%. TRP fees are in the lowest quartile in the industry. It’s reliable and one of my largest holdings.
In my Vanguard brokerage account I have VTCLX Tax-Managed Capital Appreciation and VTMSX Tax-Managed Small Cap, each with expense ratio 0.09%. One might call these funds index-adjacent: their “unique, index-oriented approach attempts to track the benchmark, while keeping taxable gains to a minimum.” (My traditional and Roth IRAs have only index funds.)
Vanguard Wellington have had for 30 yrs 0.25%ish fee with 8% return forever…….just reinvest sit back and watch climb take out if need cash…..simple and makes me a happy camper with no fuss
me too! Every once in a while I read an article that trashes managed funds and then I think about dropping. But then I think about the tons of money it’s made us over the years – seemingly in good time and bad and I stay the course. Might there be a better place to invest an appreciable portion of my portfolio? – probably, but this one feels safe, performs consistently and has never let us down.
VPCCX – Vanguard Primecap Core has beaten the S&P 500 handily over my holding period (~17 years) and provided a good source for harvesting significant taxable gains for my DAF. After 3 crops of DAF harvesting it is still ~12% of my equity holdings (cost basis would be ~7%).
Major Rationales for purchase:
Exp. Ratio: 0.460% Large Blend w/ Healthcare Overweighting 6% Turnover M* ratings: Gold medalist (future returns); 4-star (past returns) Primecap team’s amazing long term success story
PRWCX — David Giroux’s track record is unbelievable. M* has it as a Moderate Allocation fund, i.e. 50-70% Equity, which is accurate. Not only is it top 1% 5/10/15Y, the ‘worst’ calendar year in the last 10 it was 29th, and 1 of only 2 in the last 10 years where it wasn’t top quartile. 2022, down less than 12%. Closed to new investors, but not tiny @ 48 billion AUM. For those unfamiliar with M*, 1 is best, 100 is worst.
Vanguard Capital opportunity fund. VHCAX. The fund is closed now but periodically reopens if the market drops precipitously. Although morning Star rates this as a large cap growth fund, Vanguard listed as a mid cap growth fund. When you look more deeply, you will see that it is somewhere in between mid cap and large cap and consequently does not rate very highly as a large cap growth fund. However, I decided to invest in this fund many years ago because it is heavily weighted toward health care and technology which are two Fields I believe have great growth potential but they are changing so fast that I cannot keep up with them. The majority of my money is in the index funds but I have 4% of my money in this fund.
Vanguard Wellesley Income Fund (VWINX). Minimum investment $3000 for Investor shares (0.23% ER) $50,000 for Admiral Shares (VWIAX 0.16% ER)
This 40 year-old, income-oriented balanced fund offers exposure to stocks and investment-grade bonds. Balanced funds typically offer a higher allocation to stocks; however, this fund is unique in allocating about one-third to stocks and two-thirds to bonds. The fund’s stock holdings are focused on companies that have historically paid a larger-than-average dividend or that have expectations of increasing dividends. This focus may provide a higher quarterly income distribution than non-income-focused balanced funds. Investors with a medium- or long-term time horizon who have a goal of steady income and who are willing to accept modest movement in share price may wish to consider this fund as a core holding in their portfolio.
I crept gradually into bonds as I got older, first Wellington, then Wellesley. So, I’ve now got both of these funds, and I am very happy with each of them. I’ll keep them, even if it seems a little odd to hold both.
As a former member of the board of the Sequoia Fund, I am less than objective on the question of ‘what is your favorite mutual fund.’. Nonetheless, Sequoia it is. During the two-three years prior to 2016, the fund built up a outsized position in Valeant—it may have been 30% of the fund—and after making manager changes, the position was sold in the 2nd quarter of 2016. Today the five member investment committee adheres to a diversified approach—the fund holds around twenty-five positions—and holds steady to a philosophy of buying advantaged businesses that can be expected to have nice increases in intrinsic value over the years. Investment results since changes were put in place 2nd quarter of 2016 are returns slightly ahead of the S&P 500. This performance should continue for a long time.
The first mutual fund I ever purchased was the Dodge and Cox Balanced fund. I have owned it since 1997. Dodge and Cox are value investors and the fund holds about 80-90 stocks in the portfolio in a 60/40 split with bonds. My description of the company and the funds is that they are steady and reliable.
Polen Capital, Growth Fund… after fees and taxes it’s constantly beat the S&P 500 over a decade. Only drawback is 1M min. I have been very pleased with the returns.
My largest actively managed holding is Fidelity Total Bond (FTBFX). Classified as intermediate core-plus and gold-rated by Morningstar, it invests mostly in the usual investment grade credit, but can go up to 20% in high yield and emerging markets combined. I feel like it gets a little more juice than a bond market index without too much more risk, and has below average fees.
The line between active and passive continues to blur. I have some money in very low-cost factor funds. (Such as the Vanguard Momentum (VFMO) and Vanguard Liquidity (VFLQ).) Basically, any “active” fund which is run by a computer algo (rather than a human) is preferred.
Now, there is some evidence that an active manager can do ok so long as the fees are very low. Look to Emerging Markets as an example. Some studies even show is the cost of the fund, not whether it’s active or passive, that really makes the return difference. So you could hypothetically fill your portfolio with active funds (at low cost) and still keep up well.
Most of my funds are passive and over a broad index, but I have a few active ones too. The most favorite one is Cohen & Steers Total Return Realty Fund RFI. I also own it’s leveraged cousin RQI, but I’m unsure that the increased volatility (due to the leverage) is worthwhile. Both funds have delivered the promised monthly payments so far and have beaten my passive REIT fund – VNQ – since the time of purchase.
FTHNX is the only actively managed fund I own. It is currently closed to new investors.
For those who don’t recognize the ticker symbol — which includes me:
https://www.morningstar.com/funds/xnas/fthnx/quote
T. Rowe Price Growth Stock Fund (PRGFX). I’ve held it for years and it’s been a superb performer. It’s up 20% YTD on top of a 45% gain in 2023; a rebound from a terrible 2022. Over 15 years, the fund has returned 15.5%. TRP fees are in the lowest quartile in the industry. It’s reliable and one of my largest holdings.
In my Vanguard brokerage account I have VTCLX Tax-Managed Capital Appreciation and VTMSX Tax-Managed Small Cap, each with expense ratio 0.09%. One might call these funds index-adjacent: their “unique, index-oriented approach attempts to track the benchmark, while keeping taxable gains to a minimum.”
(My traditional and Roth IRAs have only index funds.)
Vanguard Wellington have had for 30 yrs 0.25%ish fee with 8% return forever…….just reinvest sit back and watch climb take out if need cash…..simple and makes me a happy camper with no fuss
me too! Every once in a while I read an article that trashes managed funds and then I think about dropping. But then I think about the tons of money it’s made us over the years – seemingly in good time and bad and I stay the course. Might there be a better place to invest an appreciable portion of my portfolio? – probably, but this one feels safe, performs consistently and has never let us down.
VPCCX – Vanguard Primecap Core has beaten the S&P 500 handily over my holding period (~17 years) and provided a good source for harvesting significant taxable gains for my DAF. After 3 crops of DAF harvesting it is still ~12% of my equity holdings (cost basis would be ~7%).
Major Rationales for purchase:
Exp. Ratio: 0.460%
Large Blend w/ Healthcare Overweighting
6% Turnover
M* ratings: Gold medalist (future returns); 4-star (past returns)
Primecap team’s amazing long term success story
PRWCX — David Giroux’s track record is unbelievable. M* has it as a Moderate Allocation fund, i.e. 50-70% Equity, which is accurate. Not only is it top 1% 5/10/15Y, the ‘worst’ calendar year in the last 10 it was 29th, and 1 of only 2 in the last 10 years where it wasn’t top quartile. 2022, down less than 12%. Closed to new investors, but not tiny @ 48 billion AUM.
For those unfamiliar with M*, 1 is best, 100 is worst.
I agree. I’ve held Giroux’s Capital Appreciation fund for years. It’s a terrific performer.
Vanguard Capital opportunity fund.
VHCAX.
The fund is closed now but periodically reopens if the market drops precipitously. Although morning Star rates this as a large cap growth fund, Vanguard listed as a mid cap growth fund. When you look more deeply, you will see that it is somewhere in between mid cap and large cap and consequently does not rate very highly as a large cap growth fund. However, I decided to invest in this fund many years ago because it is heavily weighted toward health care and technology which are two Fields I believe have great growth potential but they are changing so fast that I cannot keep up with them. The majority of my money is in the index funds but I have 4% of my money in this fund.
Vanguard Wellesley Income Fund (VWINX).
Minimum investment $3000 for Investor shares (0.23% ER)
$50,000 for Admiral Shares (VWIAX 0.16% ER)
And if you want to flip the portfolio allocation to 65% Stocks, 35% Bonds, my favorite is its cousin, Vanguard Wellington.
I crept gradually into bonds as I got older, first Wellington, then Wellesley. So, I’ve now got both of these funds, and I am very happy with each of them. I’ll keep them, even if it seems a little odd to hold both.
As a former member of the board of the Sequoia Fund, I am less than objective on the question of ‘what is your favorite mutual fund.’. Nonetheless, Sequoia it is. During the two-three years prior to 2016, the fund built up a outsized position in Valeant—it may have been 30% of the fund—and after making manager changes, the position was sold in the 2nd quarter of 2016. Today the five member investment committee adheres to a diversified approach—the fund holds around twenty-five positions—and holds steady to a philosophy of buying advantaged businesses that can be expected to have nice increases in intrinsic value over the years. Investment results since changes were put in place 2nd quarter of 2016 are returns slightly ahead of the S&P 500. This performance should continue for a long time.
The first mutual fund I ever purchased was the Dodge and Cox Balanced fund. I have owned it since 1997. Dodge and Cox are value investors and the fund holds about 80-90 stocks in the portfolio in a 60/40 split with bonds. My description of the company and the funds is that they are steady and reliable.
Polen Capital, Growth Fund… after fees and taxes it’s constantly beat the S&P 500 over a decade. Only drawback is 1M min. I have been very pleased with the returns.
My largest actively managed holding is Fidelity Total Bond (FTBFX). Classified as intermediate core-plus and gold-rated by Morningstar, it invests mostly in the usual investment grade credit, but can go up to 20% in high yield and emerging markets combined. I feel like it gets a little more juice than a bond market index without too much more risk, and has below average fees.
The line between active and passive continues to blur. I have some money in very low-cost factor funds. (Such as the Vanguard Momentum (VFMO) and Vanguard Liquidity (VFLQ).) Basically, any “active” fund which is run by a computer algo (rather than a human) is preferred.
Now, there is some evidence that an active manager can do ok so long as the fees are very low. Look to Emerging Markets as an example. Some studies even show is the cost of the fund, not whether it’s active or passive, that really makes the return difference. So you could hypothetically fill your portfolio with active funds (at low cost) and still keep up well.
Most of my funds are passive and over a broad index, but I have a few active ones too. The most favorite one is Cohen & Steers Total Return Realty Fund RFI. I also own it’s leveraged cousin RQI, but I’m unsure that the increased volatility (due to the leverage) is worthwhile. Both funds have delivered the promised monthly payments so far and have beaten my passive REIT fund – VNQ – since the time of purchase.