5 Best Actively Managed Vanguard Funds
Vanguard funds have become synonymous with index investing. But if you limit yourself to the firm's passive strategies, you'll miss some gems. Indeed, Vanguard fund managers actually invest more of their own money in the firm's actively managed funds than in their index funds.
Vanguard has such good actively managed funds for two major reasons. One, because Vanguard is owned by its mutual fund shareholders, it has no outside owners to pay -- and thus can keep its fees lower than most other fund firms. The other reason: Despite founder Jack Bogle's advocacy of index-fund investing, he was surprisingly good at identifying talented outside stock pickers and signing them up to manage assets for Vanguard during his tenure.
Soon after Bogle founded Vanguard, he signed up Wellington Management, where he had formerly worked, to manage funds for Vanguard. Wellington runs some superb funds. His other find was Primecap, which was formed by three talented managers who), one of the most successful mutual funds of the past 45 years.
