3 Vanguard Upgrades

Three Vanguard funds are on the rise. Russ Kinnel highlights three upgraded Vanguard funds you won't want to miss.



Timestamps 

00:00 Introduction

00:14 Vanguard Short-Term Inflation-Protected Securities Index VTAPX

00:40 Vanguard Extended Market Index VEXAX

01:05 Vanguard Global Wellesley Income VGYAX



Russel Kinnel: Vanguard is a leader in costs and fund design, so they tend to draw high ratings from us. We recently upgraded three of their funds.

Vanguard Short-Term Inflation-Protected Securities Index VTAPX is just about a perfect inflation hedge. TIPS adjust their value in response to changes in the consumer price index. By limiting itself to short-term TIPS, the fund avoids most interest-rate risk. In 2022, those risks were realized as inflation and interest rates spiked at the same time leaving long-term TIPS funds deep in the red. The fund’s overall rating is Gold.

We raised Vanguard Extended Market Index VEXAX from Bronze to Gold. The fund targets the rest of the market left over after the S&P 500. Thus, you have a wide-ranging and very cheap fund. It works to complete a portfolio that already has an S&P 500 index or you can use it to gain low cost exposure to small- and mid-cap stocks even if you don’t own an S&P 500 fund.

We raised Vanguard Global Wellesley Income VGYAX’s process rating from average to above average, leading to an overall upgrade from Bronze to Silver. Vanguard launched this global version of the investor favorite Wellesley Income in 2017. They are pretty similar but this fund has a tad more lower quality debt. Still, we’re pleased with what we’ve seen in the process and how it’s executed. As interest rates have risen, so has this fund’s yield making it a gem for income-oriented investors.



Learn more about these funds.

Vanguard Short-Term Inflation-Protected Securities Index VTAPX https://www.morningstar.com/funds/xna...

Vanguard Extended Market Index VEXAX https://www.morningstar.com/funds/xna...

Vanguard Global Wellesley Income VGYAX https://www.morningstar.com/funds/xna...



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Russel Kinnel https://www.morningstar.com/authors/3...



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