Vanguard active fund investor returns

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Beginning in 2006 Morningstar has calculated dollar-weighted investor returns for the mutual funds in their database. Vanguard active fund investor returns provides a convenient means of accessing this returns data for Vanguard actively managed funds.

Morningstar limits the data to only one share class, primarily investor shares, per fund.

Investor return

Morningstar defines investor return as:[note 1]

Morningstar Investor Return (also known as dollar-weighted return) measures how the average investor fared in a fund over a period of time.

Investor return incorporates the impact of cash inflows and outflows from purchases and sales and the growth in fund assets. In contrast to total returns, investor returns account for all cash flows into and out of the fund to measure how the average investor performed over time.

Investor return is calculated in a similar manner as internal rate of return. Investor return measures the compound growth rate in the value of all dollars invested in the fund over the evaluation period. Investor return is the growth rate that will link the beginning total net assets plus all intermediate cash flows to the ending total net assets.

Morningstar

When using trailing dollar-weighted investor returns for fund analysis, investors must realize that the calculations are subject to end-point bias,[note 2] meaning that the results tend to be skewed by the most resent market returns. Thus investor return will be higher if recent market returns are high, and investor return will be lower if recent returns are poor.[1][2]

Morningstar supplies investor returns over 1,3,5,10, and 15 year holding periods and advises that investor returns data are more significant when viewed over the longer-term five-year to fifeen-year holding periods. Morningstar also finds that for funds in similar categories, investor returns for funds with higher volatility of return are lower than the returns of funds with lower volatility of return.[3].

List of Morningstar investor returns for Vanguard active funds

The following lists provide links to Morningstar investor returns for Vanguard active funds.

U.S. stock funds

Vanguard stock fund investor share return
Fund Morningstar link
Vanguard Diversified Equity link
Vanguard Dividend Growth link
Vanguard Equity Income link
Vanguard Growth & Income link
Vanguard Morgan Growth link
Vanguard Prime Cap link
Vanguard Prime Cap Core link
Vanguard U.S. Growth link
Vanguard U.S. Value link
Vanguard Windsor link
Vanguard Windsor II link
Vanguard Capital Opportunity link
Vanguard Capital Value link
Vanguard Mid-Cap Growth link
Vanguard Selected Value link
Vanguard Strategic Equity link
Vanguard Explorer link
Vanguard Explorer Value link
Vanguard Strategic Small-Cap Equity link

Sector stock funds

Vanguard sector stock fund investor share return
Fund Morningstar link
Vanguard Energy link
Vanguard Health Care link
Vanguard Precious Metals & Mining link

International stock funds

Vanguard international stock fund investor share return
Fund Morningstar link
Vanguard International Growth link
Vanguard International Value link
Vanguard International Explorer link
Vanguard Emerging Market Select Stock link
Vanguard Global Equity link
Vanguard Global Minimum Volatility link

Balanced funds

Vanguard balanced fund investor share return
Fund Morningstar link
Vanguard Wellesley Income link
Vanguard Wellingtonl link
Vanguard STAR link
Vanguard Managed-Payout link
Vanguard Convertible Securities link

Bond funds

Vanguard bond fund investor share return
Fund Morningstar link
Vanguard Short-TermTreasury link
Vanguard Short-Term Federal link
Vanguard Intermediate-Term Treasury link
Vanguard Inflation Protected Securities link
Vanguard GNMA link
Vanguard Long-Term Treasury link
Vanguard Ultra-Short-Term Bond link
Vanguard Short-Term Investment Grade link
Vanguard Intermediate-Term Investment Grade link
Vanguard Long-Term Investment Grade link
Vanguard High Yield Corporate link
Vanguard Short-Term Tax-Exempt link
Vanguard Limited-Term Tax Exempt link
Vanguard Intermediate-Term Tax-Exempt link
Vanguard Long-Term Tax-Exempt link
Vanguard High-Yield Tax-Exempt link
Vanguard California Intermediate-Term Tax-Exempt link
Vanguard California Long-Term Tax-Exempt link
Vanguard MassachusettsTax-Exempt link
Vanguard New Jersey Long-Term Tax-Exempt link
Vanguard New York Long-Term Tax-Exempt link
Vanguard Ohio Long-Term Tax-Exempt link
Vanguard Pennsylvania Long-Term Tax-Exempt link

Notes

  1. See Fact Sheet Investor Returns for a fuller discussion of how the return is calculated
  2. See Spatrick, Alan D. and Benham, Frank, Endpoint Bias (December 12, 2011), SSRN. They assess end-point bias as

    Examinations of data from only the longest period available, from inception to the present day, may suffer from endpoint bias. Statistically, endpoint bias refers to the inclusion or exclusion of data that significantly influence results. Practically speaking, endpoint bias refers to investors’ tendency to place undue significance on results for measurement periods ending in the present.

    End-point bias can be the result of changing market conditions and/or insufficient data. The paper suggests four analytical approaches to both gauge and mitigate the effects of endpoint bias:

    1. Examine the longest time period available.
    2. Examine periods that contain a variety of market and economic conditions.
    3. Examine sub-periods or calculate trimmed means.
    4. Examine the underlying drivers of asset class returns.

See also

References

  1. How Did Investors Really Do?, Christine Benz, Morningstar, November, 13,2006, Reviewed 26 February 2015.
  2. Investor returns versus fund returns, John Ameriks, Vanguard blog, May 18, 2011, Reviewed 26 February 2015.
  3. Fact Sheet Investor Returns, Morningstar