This Vanguard Fund an Attractive Choice for Taxable Accounts
Strong tax-adjusted returns and low fees burnish Vanguard Tax-Managed Balanced's appeal.
Gretchen Rupp: Vanguard Tax-Managed Balanced fund follows a straightforward process that could be especially appealing for taxable accounts. The fund receives a Morningstar Analyst Rating of Gold. Low fees add to its appeal.
The fund is an equal split between an equity sleeve that tracks the Russell 1000 Index and a bond sleeve that tracks a Barclays Municipal Bond Index. Bill Coleman manages the equity sleeve, making small adjustments to the index's weightings in order to tilt the overall portfolio slightly away from the stocks with higher-dividend yields. Jim D'Arcy manages the municipal bond sleeve and has additional support from more than 20 municipal credit analysts and traders. He makes modest active decisions regarding the bond selection, including adjustments both on bond quality and duration.
Gretchen Rupp does not own shares in any of the securities mentioned above. Find out about Morningstar’s editorial policies.