Vanguard Reopens Health Care Fund With High Entry Fee

Vanguard announced Friday that it is reopening its mammoth (VGHCX Quote)Health Care fund to new investors, but only to those who can foot a new $10,000 minimum investment.

Vanguard closed the fund to let it "cool off" on Feb. 25 soon after it topped $10 billion in assets. (It has $11 billion now.) The nation's largest sector fund had just returned 40.8% in 1998, beating the S&P 500 by more than 12 percentage points, and money was pouring in -- $2.5 billion in 1998 and $564 million more in January 1999.

Vanguard feared too many performance-chasing, short-term investors were buying shares, ready to sell them at the first hiccup. ...