Vanguard active fund investor returns
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.
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.
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.
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..
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 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 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 Value||link|
|Vanguard Strategic Small-Cap Equity||link|
Sector stock funds
|Vanguard Health Care||link|
|Vanguard Precious Metals & Mining||link|
International stock funds
|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|
|Vanguard Wellesley Income||link|
|Vanguard Convertible Securities||link|
|Vanguard Short-Term Federal||link|
|Vanguard Intermediate-Term Treasury||link|
|Vanguard Inflation Protected Securities||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 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|
- See Fact Sheet Investor Returns for a fuller discussion of how the return is calculated
- 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:
- Examine the longest time period available.
- Examine periods that contain a variety of market and economic conditions.
- Examine sub-periods or calculate trimmed means.
- Examine the underlying drivers of asset class returns.