This Morningstar four-star fund focuses on value stocks that are generally out-of-favor and that typically (but not always) have lower-than-average price/earnings (P/E) ratios. Its top three holdings are Exxon Mobil Corporation Common, General Electric Company and Wells Fargo & Company.
Vanguard US Value (VUVLX)
from MoneyLetter
Vanguard US Value (VUVLX) is a quantitatively-managed fund. Vanguard Equity Investment Group is the fund’s advisor, and it utilizes “computer-driven analysis to identify stocks trading at prices perceived to be below the fundamental value of the underlying companies.”
According to Vanguard, “the quantitative process compares stocks within industry groups to identify those with characteristics that we believe will enable them to outperform over the long run. We use a strict quantitative process that concentrates on a combination of valuation and other factors focused on fundamental growth. We then construct our portfolio, aiming to maximize return and minimize exposure to risks relative to our benchmark, such as market risk, that our research indicates do not improve returns.”
Factors considered in the process include valuation, growth, momentum, quality, and management, and stocks are selected primarily from the large- and mid-cap arenas.
Walter Frank, Moneyletter, www.moneyletter.com, 800-890-9670, June 2014