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By Christine Benz and Bridget B. Hughes, CFA | 07-24-2013 02:00 PM

Notable Performers, Reopenings, and Redemptions at Vanguard

We delve into first-half domestic-equity winners, fixed-income outflows, and what may be a brief reopening of a Gold-rated fund in the Vanguard lineup.

Christine Benz: Hi. I'm Christine Benz for Morningstar.com.

Vanguard has been one of the fund world's top asset gatherers in recent years, but June was a notable exception. Joining me to discuss that and other notable developments of the firm is Bridget Hughes. She is associate director of fund analysis with Morningstar.

Bridget, thank you so much for being here.

Bridget Hughes: Thanks for having me, Christine.

Benz: Bridget, when you look at Vanguard in terms of performance in the first half of the year, how do the firm's funds do generally, when you go asset class by asset class?

Hughes: As you might expect for a firm that's as large as it is, and especially one that has as many index funds and wants to cover [as many] different areas of the markets as Vanguard does, a lot of the funds … have averaged out to the middle. So on the municipal side, on the taxable fixed-income side and even on the international side, while there is some variation in those category rankings, [they] sort of all neutralize to about the middle of the category.

Benz: Domestic equity a notable exception, though.

Hughes: Exactly. So they're having a pretty good year in domestic equity, and granted it's only been a little bit more than half the year. But the average category ranking for the Vanguard domestic equity funds is 31, which would indicate that they're, on average, in the top third of their categories.

The S&P 500 Fund and the Total Stock Market Fund are each up about 20%, which puts them right about in that 30th-40th percentile, and then they have got a slew of their active equity funds that are really skewing that number up, because really there is nothing in the bottom quartile so far for the year-to-date.

Benz: Can you name a couple of those standout funds in case people are watching and might happen to own them, the ones that are doing really great?

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