Fast Facts about the Vanguard Morgan Growth Fund



Vanguard Morgan Growth Fund overview

The Vanguard Morgan Growth Fund invests in stocks of large- and mid-cap US companies. Fund managers look for companies whose revenues, earnings, or both, are expected to grow more quickly than the average company. A key feature of the fund is that it is managed by four advisors, each of which follow a distinct investment strategy. The four advisors are Frontier Capital Management Co., Jennison Associates LLC, Vanguard Quantitative Equity Group, and Wellington Management Company LLP.

Apart from using multiple advisors, the fund invests in over 300 stocks, spreading the assets across a host of companies.

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Portfolio composition

According to information provided by the fund house, information technology was the largest sectoral holding of the fund and formed 34.2% of the portfolio as of February 2016. Consumer discretionary and healthcare were a distant second and third, respectively, and formed a combined 39% of the fund’s assets. Consumer staples and industrials rounded out the top five invested sectors.

Compared to the Russell 3000 Growth Index as of December 2015, the fund is overweight in the information technology and consumer discretionary sectors, while being underweight in the consumer staples, industrials, and materials sectors.

Amazon (AMZN), Oracle (ORCL), Costco Wholesale Corporation (COST), Amgen (AMGN), and the Vanguard Growth ETF (VUG), were among the fund’s 309 holdings as of the end of February. As of February 2016, the fund was managing assets worth $10.8 billion.

Fee and minimums

The Vanguard Morgan Growth Fund – Investor Shares (VMRGX) has been in operation since December 1968 and has an expense ratio of 0.40%. There is a minimum of $3,000 to invest in this fund via Investor shares, and the minimum subsequent investment is $1. The fund does not levy either a sales charge or a redemption fee.

In the next article, we’ll look at some of the key metrics of the fund’s performance in the one-year period ended March 18, 2016.


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