Skip to Content
US Videos

Vanguard's Best Active Large-Cap Funds

These strategies come at a very cheap price, giving the firm's large-cap equity lineup considerable appeal.

Mentioned: , , , , , ,

Alec Lucas: Well known for indexing, the Vanguard Group also has an underappreciated active management business, especially in large-cap equities. The bulk of Vanguard’s more than $300 billion in equity assets are outsourced to external subadvisors who run 15 separate strategies, ranging from domestic large-growth, -value, and -blend funds to an emerging-markets offering and even a recently launched ESG fund. Morningstar rates 12 of the strategies and assigns a Morningstar Analyst Rating of Bronze or higher to 11 of them, including four Gold-rated and three Silver-rated strategies.

The three Vanguard strategies run by Pasadena, California-based Primecap Management Company stand out. All three are rated Gold, and while closed to new investors, reopening at some point isn’t out of the question. Investors on the outside looking in must be ready to act quick, though. Vanguard Capital Opportunity, one of Primecap's funds, reopened to new investors in April 2013 only to close again in December of that year. The other Gold-rated strategy, Vanguard Dividend Growth, run by Wellington Management’s Donald Kilbride, had been closed to new investors since July 2016 but reopened on Aug. 1 of this year. Its reopening presents investors with a chance to buy into a resilient, mega-cap-oriented strategy that has proven its ability to growth wealth over time.

Alec Lucas has a position in the following securities mentioned above: VDIGX. Find out about Morningstar’s editorial policies.

Transparency is how we protect the integrity of our work and keep empowering investors to achieve their goals and dreams. And we have unwavering standards for how we keep that integrity intact, from our research and data to our policies on content and your personal data.

We’d like to share more about how we work and what drives our day-to-day business.

We sell different types of products and services to both investment professionals and individual investors. These products and services are usually sold through license agreements or subscriptions. Our investment management business generates asset-based fees, which are calculated as a percentage of assets under management. We also sell both admissions and sponsorship packages for our investment conferences and advertising on our websites and newsletters.

How we use your information depends on the product and service that you use and your relationship with us. We may use it to:

  • Verify your identity, personalize the content you receive, or create and administer your account.
  • Provide specific products and services to you, such as portfolio management or data aggregation.
  • Develop and improve features of our offerings.
  • Gear advertisements and other marketing efforts towards your interests.

To learn more about how we handle and protect your data, visit our privacy center.

Maintaining independence and editorial freedom is essential to our mission of empowering investor success. We provide a platform for our authors to report on investments fairly, accurately, and from the investor’s point of view. We also respect individual opinions––they represent the unvarnished thinking of our people and exacting analysis of our research processes. Our authors can publish views that we may or may not agree with, but they show their work, distinguish facts from opinions, and make sure their analysis is clear and in no way misleading or deceptive.

To further protect the integrity of our editorial content, we keep a strict separation between our sales teams and authors to remove any pressure or influence on our analyses and research.

Read our editorial policy to learn more about our process.