The recent market environment has been inhospitable for this systematic market-neutral strategy. But weak performance has been worse and lasted longer than expected. As a result, we are downgrading the Morningstar Analyst rating for both share classes of Vanguard Market Neutral to Neutral from Bronze.
Will VMNFX outperform in future?
Get our overall rating based on a fundamental assessment of the pillars below.
The Process Pillar is our assessment of how sensible, clearly defined, and repeatable VMNFX’s performance objective and investment process is for both security selection and portfolio construction.
The People Pillar is our evaluation of the VMNFX management team’s experience and ability. We find that high-quality management teams deliver superior performance relative to their benchmarks and/or peers.
The Parent Pillar is our rating of VMNFX’s parent organization’s priorities and whether they’re in line with investors’ interests.