uploads///Portfolio Breakdown of the VMRGX

How Has VMRGX’s Portfolio Changed?


May. 31 2016, Published 3:36 p.m. ET

VMRGX overview

The Vanguard Morgan Growth Fund Investor Shares (VMRGX) invests in the stocks of large-cap and mid-cap US companies. Fund managers look for companies whose revenues or earnings are expected to grow more quickly than average. A key feature of the fund is that it’s managed by four advisors, each of whom follows a distinct investment strategy.

Apart from using multiple advisers, the fund invests in over 300 stocks, diversifying its assets across a host of companies.

PepsiCo (PEP), Oracle (ORCL), Costco Wholesale (COST), Amgen (AMGN), and Vantiv (VNTV) were among the fund’s 310 holdings as of April 2016’s end. As of April, the fund was managing assets worth $11.1 billion.

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Portfolio changes in VMRGX

For this analysis, we’ll be considering VMRGX’s holdings as of December 2015, as that’s the latest available sectoral breakdown. The fund’s holdings after December reflect valuation-driven changes to its portfolio, not its actual holdings.

The information technology sector is by far the sector in which VMRGX invests the most. It forms over one-third of the fund’s total portfolio. The consumer discretionary and healthcare sectors are other sectors that lie at the heart of VMRGX. Combined, these three sectors form over 70% of the fund’s assets. No other sector forms 10% or more of its assets.

In the year leading up to April 2016, VMRGX’s exposures to the consumer discretionary and consumer staples sectors have increased. On the other hand, the energy, healthcare, and materials sectors have seen their respective portions in the fund’s portfolio reduced.

The fund’s turnover is on the high side, showing that its management isn’t shy about experimenting with different stocks.

In the next article, we’ll see if this comparatively high turnover rate has helped the fund in 2016 so far. We’ll also look at which sectors have contributed to its performance.


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