Vanguard, known for its low-cost investment products, offers a wide range of mutual funds to suit the different investment goals and risk appetites of investors. Further, these funds provide higher liquidity and aim for long-term capital appreciation. Today, we have focused on two such funds, VRGWX and VGIAX, that have the potential to earn over 10% in the next twelve months, as projected by analysts.
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Let’s take a closer look at the two funds.
Vanguard Russell 1000 Growth Index Fund Institutional Shares (VRGWX)
The VRGWX mutual fund aims to track the performance of the Russell 1000 Growth Index, which consists of the growth stocks of large U.S. companies. It allows investors to gain exposure across various industries, providing potential for long-term growth and diversification in their portfolios. Also, it has a low expense ratio of 0.07%, making it a cost-effective option. Interestingly, VRGWX has generated a return of 30.4% over the past year.
Overall, VRGWX has a Strong Buy consensus rating. This is based on the weighted average consensus rating of each stock held in the portfolio. Of the total stocks held, 349 have Buys, 86 have a Hold rating, and eight have a Sell rating. The analysts’ average price target on the VRGWX fund of $774.40 implies a 14.41% upside potential from the current levels.
Vanguard Growth and Income Fund Admiral Shares (VGIAX)
The VGIAX mutual fund seeks to outperform the performance of the S&P 500 Index (SPX) and provides exposure to several large U.S. companies. The fund invests at least 65% of its assets in stocks that are included in the index. Its low expense ratio of 0.22% is encouraging. The VGIAX fund has returned about 27.6% over the past year.
On TipRanks, VGIAX has a Moderate Buy consensus rating. This is based on 589 stocks with a Buy rating, 200 stocks with a Hold rating, and 26 with a Sell rating. The analysts’ average price target on the VGIAX fund of $115.10 implies a 12.96% upside potential from the current levels.
Concluding Note
Both the VRGWX and VGIAX mutual funds have growth potential, making them a suitable choice for investors looking for long-term capital appreciation. Nevertheless, it is wise to thoroughly research both of these mutual funds before making any investment.