7 Funds to Rebuild Your Nest Egg for 2012
The $4 billion Vanguard Selected Value Fund (VASVX) gets top ratings from both Morningstar and S&P Capital IQ. The latter cited it as its top pick in the domestic equity mid-cap category of funds this year.
The fund has a 10-year average annual return of 7.7% putting it in the top 19% of all the funds in its category. For the three-year period through Nov. 25, the fund had an average annualized total return of 19.4% versus 17.8% for its mid-cap value funds peers.
Morningstar analyst Dan Culloton writes that the fund's two managers, Jim Barrow and Mark Giambrone, are "traditional value investors who look for dividend-paying companies with strong balance sheets and business models, but whose shares offer above-average yields and below-average valuations. They stay fully invested in a compact portfolio of fewer than 50 stocks and trade infrequently." Its top holdings are cruise-ship line Royal Caribbean Cruises (RCL), Constellation Energy (CEG), a power generation and regulated electric and gas public utility in central Maryland, and Yamana Gold (YRI), which operates six gold mines in Central and South America.Select the service that is right for you!
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