The current economic conditions and shifting market trends will make significant impact in 2017. These two factors will play a major role when selecting the best Vanguard investments this year. A great challenge for investors is an apprehension that capital markets may overheat.
As a smart investor, you must avoid the short-term noise and focus on the bigger cyclical trends. With this in mind, it pays to hold the best mutual funds which will reap large benefits towards the end of the business cycle. If you are looking to invest in Vanguard funds, here are a few you can consider.
Vanguard Mid-Cap Index Fund (VIMSX)
The later-cycle trends can stunt the growth potential for the conventional large holdings. Thus, the Vanguard Mid-Cap Index Fund can be a smart alternative for the investors. The minimum investment is $3000, and you will incur a processing fee of 0.20 percent.
Vanguard Growth Index Funds (VIGRX)
If you are in search of investments which will aid in pure growth all through this year, the Vanguard Growth Index Funds may be your best bet. Here also, the minimum amount of investment must be $3000, with a processing fee of 0.22 percent. The working principle of the VIGRX portfolio is to hold shares of large enterprises in the country which will grow quickly. This helps in generating more income compared to the broader market indices. Towards the late-cycle of the growing economy, you must aim to invest in any of the top three holdings of Vanguard.
Vanguard Global Equity Fund (VHGEX)
If your aim is to diversify overseas investments in 2017, then the Vanguard Global Equity Fund will be an excellent choice. The fluctuations in currency values are likely to make the international investment a challenge this year. Also, the experts are warning about the tumult that the government of Donald Trump will cause. It has already caused mass sales of Mexican and Chinese stocks in the aftermath of the election. The best advantage of the Vanguard Global Equity Fund is that it has a 50-50 distribution of shares in the country, and the rest of the world. This allows you to choose both foreign and local stocks. This offers significant advantages in the current volatile market.
Vanguard funds are a great choice for beginner investors. As a new investor, no-load funds that have low expense ratios are ideal. The low minimum capital investment amounts are also a benefit of Vanguard funds. But it is important to weigh your options before you finalize your decision. If you are not confident in your decisions, you can seek the assistance of financial advisors in your area.
