The 25 Best No-Load Mutual Funds You Can Buy
The key to building wealth long-term is buying high-quality, no-load mutual funds run by seasoned stock pickers. Here are our favorites.
The Kiplinger 25 list of our favorite no-load mutual funds dates back to 2004, and our coverage of mutual funds goes all the way back to the 1950s. We believe in holding funds rather than trading them, so we focus on promising mutual funds with solid long-term records – and managers with tenures to match.
After several seasons of unpredictable market conditions, a spring cleaning can bring a sense of order to things. We're talking about your portfolio, of course. Moves you make now to ensure you hold the right mix of funds could be richly rewarding later. As renowned value investor Shelby Davis once said, "You make most of your money in the bear market. You just don't realize it at the time."
Given that most markets – and funds – have declined over the past year, smart investors will carve out time now to review their portfolio and make any necessary adjustments. A good mix of holdings will include both stocks and bonds, pay adequate attention to small and large companies – foreign and domestic – and be balanced between value-priced shares and growth stocks.
A broad assortment is key, because in coming years it is less likely that any one sector or small group of stocks will dominate market leadership, as was the case pre-pandemic, says Ken McAtamney, head of William Blair's global equity team. "We believe that diversity of growth, industries and business models at appropriate levels of valuation will make for optimal investment returns."
This year, in our annual review of the Kiplinger 25, we're making two changes. Parnassus Mid Cap (PARMX), which has been on watch for two years, is out. The fund tends to do well during down-markets and lag in upswings. But lately it has trailed in both types of markets. Its replacement, Heartland Mid Cap Value (HRMDX), is a better complement to the other Kip 25 strategies because it is invested more in mid- and small-cap stocks than the Parnassus fund; it tilts more toward value, too.
The other change: Metropolitan West Total Return Bond (MWTRX) is out, and Baird Aggregate Bond (BAGSX) is in. The MetWest fund has lagged both the broad bond market and peer funds over the past three and five years. We liked the fund's leeway to invest in below-investment-grade sectors, such as high-yield bonds, bank loans and emerging-markets debt. But today's higher interest rates mean there's little need to goose yield with lower-quality credit, so we sought a more basic intermediate core bond fund. "There’s no need to take on much risk to earn a good yield these days," the Baird managers told us. We agree.
Here are our picks for the best 25 no-load mutual funds: what makes them tick, and what kind of returns they've delivered.
Disclaimer
Data is as of Feb. 28, unless otherwise noted. Five- and 10-year returns are annualized. Yields on equity funds represent the trailing 12-month yield. Yields on balanced and bond funds are SEC yields, which reflect the interest earned after deducting fund expenses for the most recent 30-day period.
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Dodge & Cox Stock
- Symbol: DODGX
- 1-year return: 17.1%
- 5-year return: 12.3%
- 10-year return: 10.6%
- Yield: 1.4%
- Expense ratio: 0.51%
Dodge & Cox managers are disciplined about buying low and selling high. Recently, the fund trimmed its exposure to soaring stocks, such as Alphabet (GOOGL), Broadcom (AVGO) and Meta Platforms (META), and plowed that money into more defensive and stable sectors such as healthcare and utilities.
Over the past 12 months, Dodge & Cox Stock returned 17%, which was better than 71% of its peers (large value funds) but trailed the S&P 500.
The fund's value tilt has been a hindrance for the past decade because growth stocks have dominated returns in the broad market. Even so, Stock boasts an 11% annualized 10-year return, a fine record in absolute terms. What's more, the fund held up better than the S&P 500 in 2022, dipping just 7% – much less than the 18% loss in the index.
A little diversification in investment style, in other words, is a good thing.
Fidelity Blue Chip Growth
- Symbol: FBGRX
- 1-year return: 56.5%
- 5-year return: 20.3%
- 10-year return: 16.6%
- Yield: 0.0%
- Expense ratio: 0.69%
After a rough 2022, large-cap growth fund Fidelity Blue Chip Growth bounced back over the past 12 months with a 57% return, better than 96% of its peers.
Excitement about artificial intelligence (AI) was the big driver, and the fund got a lift from market darlings Amazon.com (AMZN), Microsoft (MSFT), Apple (AAPL), Nvidia (NVDA) and Meta Platforms. But non-tech firms helped the fund's performance, too, including athletic wear company Lululemon Athletica (LULU) and ride-sharing company Uber Technologies (UBER).
Longtime manager Sonu Kalra, who hunts for companies with potential for above-average earnings growth that the market has misjudged, has outpaced his peer group in nine of the past 11 calendar years.
Mairs & Power Growth
- Symbol: MPGFX
- 1-year return: 29.2%
- 5-year return: 13.2%
- 10-year return: 10.8%
- Yield: 0.8%
- Expense ratio: 0.63%
This isn't your typical growth fund. The managers prefer reasonably priced shares, for a start, and two-thirds of the fund's assets must be invested in companies based in the Upper Midwest, near Mairs & Power's St. Paul office.
In years past, both particularities meant the fund didn't own the tech stocks that dominate most growth funds. But in 2022, as growth-oriented shares fell, Mairs & Power Growth managers snapped up Nvidia, Salesforce (CRM) and Amazon.com, among others, on the cheap. That move helped the fund gain 29% over the past 12 months.
Tech is now the fund's top sector, at 28% of assets, up from 6% of assets a decade ago. Lately, the fund has been finding opportunities in firms that are harnessing AI to improve sales and profitability in old-economy sectors such as financials, industrials, utilities and consumer staples.
Primecap Odyssey Growth
- Symbol: POGRX
- 1-year return: 21.8%
- 5-year return: 10.2%
- 10-year return: 11.2%
- Yield: 0.5%
- Expense ratio: 0.66%
This fund has been a long-haul star: Its 15-year annualized return of 16% beat the return of the S&P 500. But since the start of 2018, Primecap Odyssey Growth has lagged the benchmark in every calendar year except 2022, when it held up better. The fund's below-average stake in tech stocks has been a hindrance, as has its above-average position in the underperforming healthcare and industrial sectors.
Five managers divide the assets and invest independently, each focusing on growing companies priced at a discount that have a catalyst – a new product, say, or a restructuring – to push stock prices higher.
Over the past 12 months, despite gains in drugmaker Eli Lilly (LLY), biotech firm Seagen and medical device company Abiomed, the fund's healthcare stocks weighed on returns. But investments in the information technology sector, such as data-software firm Splunk – in the midst of being acquired by tech giant Cisco Systems (CSCO) – and Jabil, an electronic components maker, were a lift.
We're still fans of the fund, but its recent record is a good reminder that it's best for long-term investors with a stomach for volatility.
T. Rowe Price Dividend Growth
- Symbol: PRDGX
- 1-year return: 19.0%
- 5-year return: 12.8%
- 10-year return: 11.8%
- Yield: 1.1%
- Expense ratio: 0.64%
To longtime T. Rowe Price Dividend Growth manager Tom Huber, yield doesn't matter as much as a track record of dividend increases. That trait, he says, often points to firms that are financially healthy and stocks that are less volatile. Ergo, Dividend Growth has delivered solid returns with low volatility. Dow Jones stocks Microsoft, Apple and Visa (V) topped the portfolio recently.
Dividend shares struggled over the past year – they had to compete with high interest rates and snazzy growth stocks for investors' dollars – so Huber took the opportunity to add some new stocks to the fund, including chip company Analog Devices (ADI), consumer health products firm Kenvue (KVUE) and discount retailer Target (TGT). He also shed a few, including fintech firm Fidelity National Information Services (FIS) and Walt Disney (DIS).
Vanguard Equity Income
- Symbol: VEIPX
- 1-year return: 11.3%
- 5-year return: 10.1%
- 10-year return: 9.8%
- Yield: 2.8%
- Expense ratio: 0.27%
Vanguard Equity Income boasts a 2.8% yield, which tops the 1.4% yield of the S&P 500. But dividend stocks struggled over the past 12 months, and the fund returned 11%, trailing its benchmark, the FTSE High Dividend Yield index, by a tad.
Matt Hand, of Wellington Management, runs two-thirds of the assets, investing in companies that balance above-average yield, high-quality traits and reasonable valuations. Over the past year, he picked up discounted shares in good companies, including drugmaker Gilead Sciences (GILD) and Intercontinental Exchange (ICE), which operates global exchanges for securities trading.
A team from Vanguard's quantitative equity group led by Sharon Hill has run one-third of the fund since 2021. She recently customized the computer model her team uses to choose stocks for this fund. It now emphasizes free cash flow (money left over after operating expenses and spending to maintain and expand the business), a key measure of a company's ability to pay its dividend and fuel future growth.
Recent top performers include utility Vistra (VST) and energy firm Marathon Petroleum (MPC).
DF Dent Midcap Growth
- Symbol: DFDMX
- 1-year return: 22.4%
- 5-year return: 9.8%
- 10-year return: 10.0%
- Yield: 0.0%
- Expense ratio: 0.87%
Midsize firms that dominate their industries, have sustainable earnings growth and employ smart executives make prime candidates for DF Dent Midcap Growth. But price matters. The fund avoided the handful of richly priced growth stocks that topped the Russell Mid Cap Growth benchmark over the past 12 months – in late 2023, some traded for 40 or more times year-ahead earnings estimates, says comanager Bruce Kennedy. That's in part why DF Dent Midcap Growth fund lagged the index over the period.
Even so, some "steady-Eddie companies" helped offer some downside protection, he says. Gains in aerospace firm TransDigm Group (TDG) – up 63% over the past 12 months – and insurer Goosehead Insurance (GSHD) – up 62% – were among the fund's best performers.
DF Dent Midcap Growth is regaining its footing after a sluggish pandemic and post-pandemic period.
Heartland Mid Cap Value
- Symbol: HRMDX
- 1-year return: 8.0
- 5-year return: 10.7
- 10-year return: N/A
- Yield: 0.7%
- Expense ratio: 1.10%
The Heartland Mid Cap Value's sweet spot – high-quality midsize-company stocks that trade at a value – has been out of vogue. Instead, speculative, highly leveraged stocks shone in the most recent quarter, say the managers, but "our goal is to create consistent, lasting value for our shareholders over the long term."
The managers look for bargain-priced stocks that meet the firm's 10-point security-picking process, which focuses on high-quality companies that have positive momentum in earnings growth and share-price movement.
The approach has resulted in above-average returns with below-average volatility over the fund's nine-year history. But over the past 12 months, the fund has lagged its bogey, the Russell Mid Cap Value index.
T. Rowe Price QM U.S. Small-Cap Growth
- Symbol: PRDSX
- 1-year return: 18.7%
- 5-year return: 9.3%
- 10-year return: 9.4%
- Yield: 0.0%
- Expense ratio: 0.80%
A computer model drives the stock picking at T. Rowe Price Integrated U.S. Small-Cap Growth Equity, so manager Sudhir Nanda's retirement later this year is not a huge concern. Two newly named associate managers, David Corris and Prashant Jeyaganesh, will take over the fund in August. But we are watching the fund closely and considering other options.
Nanda's model is designed to build a low-turnover, low-volatility portfolio. It focuses on specific stock traits – valuation, profitability, capital allocation, earnings quality and revisions in earnings estimates, and price momentum.
When markets soured in 2022, the fund held up better than 79% of its small-cap growth fund peers. And since Nanda took over the fund in late 2006, the fund's annualized 11% return has beaten both the Russell 2000 and the S&P Small Cap 600 indexes.
T. Rowe Price Small-Cap Value
- Symbol: PRSVX
- 1-year return: 3.2%
- 5-year return: 7.0%
- 10-year return: 7.1%
- Yield: 0.6%
- Expense ratio: 0.82%
This small-company stock fund's secret sauce has always been to find unloved, undervalued and undiscovered businesses. But shareholders might appreciate a little more loving. The slump in small-cap stocks continues, and T. Rowe Price Small-Cap Value has been even slumpier. The fund lagged its peers in 2022 and 2023, and over the past 12 months, its 3% return has trailed the Russell 2000 index and the typical small-cap value fund. We're watching the fund closely.
In the fund's favor: Since he took over nearly a decade ago, manager David Wagner beats his peers and keeps pace with the Russell 2000 with a 7% annualized return. Depressed share prices have kept him busy recently. Over the past year, he has scooped up discounted shares in biotech firm Cabaletta Bio (CABA) and waste-management company Casella Waste Systems (CWST), among others.
Baron Emerging Markets
- Symbol: BEXFX
- 1-year return: -18.3%
- 5-year return: -3.4%
- 10-year return: 2.5%
- Yield: 0.0%
- Expense ratio: 1.33%
The focus: Emerging-markets stocks. China, India and South Korea are its biggest country exposures.
The process: Manager Michael Kass invests in firms of all sizes with growth themes in mind, such as the spread of fintech or India's economic growth.
The track record: Emerging-markets stocks had a terrible year. The fund lagged its peers and the MSCI EM Index. In part, that was due to big bets on Russia and China, markets that floundered for much of the past year.
The last word: There's hope for a turnaround this year. Shares in developing markets started 2023 near a 30-year low on a number of measures relative to U.S. stocks, says Kass. Plus, developing economies and company earnings are poised for improvement: Stronger local currencies relative to a weakening dollar buoy emerging economies, and the reopening of China will be an added shot of adrenalin.
Brown Capital Management International Small Company
- Symbol: BCSVX
- 1-year return: -14.0%
- 5-year return: 5.5%
- 10-year return: N/A
- Yield: 0.0%
- Expense ratio: 1.31%
The focus: Small and midsize foreign firms in developed countries. Stocks in the fund have an average $2.7 billion market value. The U.K., France and Japan are its top country exposures.
The process: The managers hunt for what they call exceptional growth companies. Those include firms that, among other things, provide products or services that customers cannot live without; boast business models that others find difficult to compete with; and have smart managers at the top.
Top holdings include Interparfums, a perfumes and cosmetics firm, and Lectra, which makes software and cutting-room systems for textiles.
The track record: Small and growth-oriented stocks were pummeled over the past year, and the fund lost 14%, lagging its benchmark. Still, comanager Dan Boston says the fund's holdings are solid. Stocks in the fund increased 2022 revenues by 22%, on average, even as their share prices lost ground.
The last word: The fund's five-year annualized returns beat 97% of its peers and walloped its benchmark.
Fidelity International Growth
- Symbol: FIGFX
- 1-year return: -7.0%
- 5-year return: 5.2%
- 10-year return: 6.7%
- Yield: 0.2%
- Expense ratio: 1.01%
The focus: Shares in large and midsize growing companies in developed countries. Japan, France and Switzerland are top foreign-country positions.
The process: Veteran manager Jed Weiss looks for industry leaders that can raise prices for products or services without seeing a dent in demand and have strong growth potential. The share price matters, too.
His research usually tips him toward stocks that fit into broad themes, including firms emerging from the pandemic in a stronger position after smart acquisitions. Travel firm Amadeus IT Group (AMADY) is one.
The track record: The fund lagged the MSCI EAFE index over the past 12 months. But Weiss's 15-year record, 5.5% annualized, beat the benchmark by nearly twofold. And he has outpaced peers, funds that invest in growing, large foreign stocks, in seven of the past 10 full calendar years.
The last word: This fund's a keeper.
Janus Henderson Global Equity Income
- Symbol: HFQTX
- 1-year return: -3.1%
- 5-year return: 2.9%
- 10-year return: 4.7%
- Yield: 3.8%
- Expense ratio: 1.02%
The focus: Large, high-quality foreign companies that pay a dividend. The fund yields 3.8%.
The process: Global Equity Income can have up to 60% of assets in U.S. stocks, but it usually tilts more foreign – 77% of the fund's assets are in non-U.S. shares.
Three comanagers look for firms with strong free cash flow (cash remaining after operating expenses and investments in the business) and solid balance sheets that pay dividends and are bargain-priced relative to similar investments. Top holdings include Unilever (UL) and TotalEnergies (TTE).
The track record: The fund lost 3.1% over the past year, putting it ahead of the 8.3% loss in the MSCI ACWI, an index of global stocks.
The last word: The fund's cash-flow focus steers the managers clear of debt-laden firms that might look cheap. That has helped in recent years, says comanager Ben Lofthouse.
Fidelity Select Health Care
- Symbol: FSPHX
- 1-year return: -2.0%
- 5-year return: 9.8%
- 10-year return: 14.4%
- Yield: 0.0%
- Expense ratio: 0.68%
The focus: Healthcare stocks.
The process: Manager Eddie Yoon plays offense and defense in this diversified sector fund. He loads up on outsize positions in stable, steadily growing companies like UnitedHealth Group (UNH) and faster-growing established firms – AstraZeneca (AZN) – then spices up the portfolio with innovative companies including biotech firm Argenx (ARGX).
The track record: Large healthcare stocks had a better year than the broad market. Select Health Care lost 2.0% for the period. Meanwhile, the fund's annualized five- and 10-year returns beat the top 10% of its peers.
The last word: Over the long haul, this diversified healthcare fund shines.
T. Rowe Price Global Technology
- Symbol: PRGTX
- 1-year return: -34.8%
- 5-year return: 1.7%
- 10-year return: 14.3%
- Yield: 0.0%
- Expense ratio: 0.86%
The focus: Tech stocks from all over.
The process: This fund is filled with fast-growing companies that offer vital services or products in expanding markets with shares that trade at reasonable prices.
New manager Dominic Rizzo has reshaped the portfolio since arriving in 2022. Software firms, which accounted for half the portfolio last year, now make up 33% of assets; hardware, 1% of the fund in late 2022, is now 10%; and semiconductors jumped to 28% of assets, up from 22%. Tech titans Apple and Microsoft, absent from the fund at the start of 2022, now stand among the top holdings.
The track record: The fund had a dismal 2022, but over the past three months, its 5.7% return beat 79% of its peers.
It's early days for Rizzo, but he says the portfolio is now nicely balanced. "We capture a lot of the upside on days the market is up, and on down days we hold up better."
The last word: A new manager is often reason to jettison a fund from the Kip 25, but we can't find another tech fund we like better. We're keeping it on the roster but watching it closely.
TCW Enhanced Commodity Strategy
- Symbol: TGABX
- 1-year return: -5.7%
- 5-year return: 6.3
- 10-year return: -0.3%
- Yield: 3.6%
- Expense ratio: 0.75%
The focus: Commodity-linked investments backed by high-quality, short-term bonds. The fund yields 3.6%
The process: The fund aims to outpace an index that tracks prices for raw materials, including energy, grains, metals, cotton and livestock.
The track record: The fund's short-term bond side hurt its performance over the past year. Its one-year loss of 5.7% trailed the Bloomberg Commodity index, which lost 4.7%. Despite higher inflation, recession worries weighed on commodity prices, and rising rates curbed demand for raw goods.
The last word: Commodity prices are easing but "will remain considerably above their average over the past five years," according to the World Bank Group. Though appealing for now, this is not a hold-forever fund. We'll be watching economic signposts and shifting central bank policies closely.
Baird Aggregate Bond
- Symbol: BAGSX
- 1-year return: -9.8%
- 5-year return: 0.6%
- 10-year return: 1.3%
- Yield: 3.7%
- Expense ratio: 0.55%
The focus: High-quality U.S. bonds. The fund yields 3.7%. Its duration (a measure of interest-rate sensitivity) is 6.2 years. That implies a 6.2% drop in the fund's net asset value if rates rise one percentage point over the next year; a similar gain if rates fall by a point.
The process: Mary Ellen Stanek and her co-chief investment officer, Warren Pierson, lead this fund's 10-person team, investing in high-grade government IOUs, asset-backed and mortgage-backed securities, and corporate debt.
"We're not market timers," says Stanek. Instead, they keep it simple, aiming to modestly beat the Bloomberg U.S. Aggregate Bond index, before expenses, by matching the fund's duration to that of the benchmark and adding value through security selection, bond-sector allocation, and the fund's tilt at any given time toward short-, intermediate- or long-term bonds, among other things.
The track record: The fund beat its peers and the Agg index in seven of the past 11 full calendar years. Its 10-year annualized return, 1.3%, outpaced 79% of its peers and the Agg, too.
The last word: This fund yields less than the fund it is replacing, MetWest Total Return Bond. But Baird has lower expenses, and over the past decade it has been less volatile and more rewarding.
Fidelity Strategic Income
- Symbol: FADMX
- 1-year return: -6.5%
- 5-year return: 1.8%
- 10-year return: 2.6%
- Yield: 5.6%
- Expense ratio: 0.66%
The focus: Bonds from a variety of sectors. The fund yields 5.6%.
The process: The fund invests in multiple sectors, keeping in mind a benchmark of 45% of assets in high-yield bonds (rated double-B to triple-C), 30% in U.S. government and other high-quality issues, 15% emerging-markets debt, and 10% in IOUs from developed foreign countries. Lead managers decide how much to devote to each sector; other pros pick the securities.
The track record: The fund lost 6.5% over the past 12 months, behind 61% of multisector bond funds. But it held up better than the Agg, down 9.7%.
The last word: Strategic Income has a solid long-term record.
Fidelity Intermediate Municipal Income
- Symbol: FLTMX
- 1-year return: -3.3%
- 5-year return: 1.6%
- 10-year return: 1.8%
- Yield: 3.0%
- Expense ratio: 0.32%
The focus: High-quality, medium-maturity bonds exempt from federal taxes. The fund yields 3.0%, or a tax-equivalent 4.0% for investors in the 24% federal income tax bracket.
The process: Three managers look for well-priced general obligation debt – muni bonds funded by state and local taxes – and revenue bonds, or IOUs for projects such as toll bridges that generate income to pay off the loan.
The track record: The fund’s five-year annualized 1.6% return ranks among the top 24% of its peers.
The last word: This fund wins the race with slow and steady returns.
T. Rowe Price Floating Rate
- Symbol: PRFRX
- 1-year return: 2.6%
- 5-year return: 3.2%
- 10-year return: 3.3%
- Yield: 8.2%
- Expense ratio: 0.75%
The focus: Short- to medium-term loans issued to firms with below-investment-grade credit ratings. These notes pay interest rates that reset every three months in line with a short-term benchmark. The fund yields 8.2%.
The process: Manager Paul Massaro and a team of analysts dive deep to find quality loans trading at a discount. Since the start of 2019, none of the loans in the portfolio have defaulted. Meanwhile, the bank-loan market has averaged a 1.6% default rate.
The track record: The fund delivered a 2.6% gain last year, beating 91% of its bank-loan-fund peers. Massaro added to positions among his favorite financials and reduced his stake in the healthcare industry.
The last word: With the Fed nearing a pause on its rake hikes, we're watching the market closely.
TIAA-CREF Core Impact Bond
- Symbol: TSBRX
- 1-year return: -10.1%
- 5-year return: 0.3%
- 10-year return: 1.4
- Yield: 4.1%
- Expense ratio: 0.64%
The focus: Medium-maturity, high-grade bonds. The fund yields 4.1%.
The process: Three comanagers invest in debt issued by firms that meet ESG measures and financial criteria. About 40% of the portfolio is devoted to projects that make a positive, measurable social or environmental impact.
The track record: The fund's 10-year annualized return handily beat the Agg index and 87% of its peers. But it lagged over the past year, with a 10.1% loss.
The last word: The fund's impact investments have helped 38 million people in the U.S. and Africa benefit from clean water and other projects.
Vanguard Emerging Markets Bond
- Symbol: VEMBX
- 1-year return: -4.3%
- 5-year return: 3.3%
- 10-year return: N/A
- Yield: 6.9%
- Expense ratio: 0.55%
The focus: Dollar-denominated debt in developing countries. Yield: 6.9%.
The process: Vanguard's Dan Shaykevich and Mauro Favini invest primarily in government bonds.
The track record: Over the past year, this fund’s total return – change in net asset value plus interest payments – was a negative 4.3%. The typical emerging-markets bond fund lost 6.7%.
The last word: The stars are aligning for emerging-markets bonds. High yields are a plus; high commodity prices help many emerging-markets producers; and China’s reopening is a boon, too.
Vanguard High-Yield Corporate
- Symbol: VWEHX
- 1-year return: -4.1%
- 5-year return: 2.7%
- 10-year return: 3.7%
- Yield: 6.8%
- Expense ratio: 0.23%
The focus: Short- to medium-maturity debt issued by firms with junk credit ratings. The fund yields 6.8%
The process: Manager Michael Hong, of subadviser Wellington Management, took on a comanager last summer. At the same time, Vanguard's in-house bond pickers stepped in to manage a third of the fund's assets, or about $8 billion. Both subadvisers emphasize the highest-quality junk, which helps lower the fund's risk profile.
The track record: High-Yield Corporate has delivered above-average returns with below-average risk for the past five and 10 years. And it held up better than its peers over the past 12 months.
The last word: Recessions aren't ideal for junk bonds, as the risk of default may rise. But strategists say these companies look financially stronger than usual, and current yields resemble stock-like returns. Just step cautiously.
Vanguard Short-Term Investment Grade
- Symbol: VFSTX
- 1-year return: -3.6%
- 5-year return: 1.2%
- 10-year return: 1.4%
- Yield: 4.8%
- Expense ratio: 0.20%
The focus: High-quality, short-maturity debt. The fund yields 4.8%.
The process: Lead managers make the big-picture decisions; bond-sector specialists pick the securities. Currently, 80% of the fund is invested in corporate debt. The rest is spread among government, securitized and foreign debt.
The track record: The fund lost 3.6% over the past year, lagging peers. But over 10 years, it ranks in the top 25% of its category.
The last word: This is a sensible choice for short-term bond exposure.
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Nellie joined Kiplinger in August 2011 after a seven-year stint in Hong Kong. There, she worked for the Wall Street Journal Asia, where as lifestyle editor, she launched and edited Scene Asia, an online guide to food, wine, entertainment and the arts in Asia. Prior to that, she was an editor at Weekend Journal, the Friday lifestyle section of the Wall Street Journal Asia. Kiplinger isn't Nellie's first foray into personal finance: She has also worked at SmartMoney (rising from fact-checker to senior writer), and she was a senior editor at Money.
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A big earnings boom for credit card giant American Express helped the Dow notch another win.
By Karee Venema Published