Buy: Vanguard Growth Index Admiral (VIGAX)
Spanning 83 funds, Vanguard’s “Admiral” shares boast lower annual expenses than Vanguard’s “Investor” share class. Think of Admiral and Investor class funds as non-identical twins; both of them invest in the same basket of securities, but Admiral shares have lower fees and higher minimums.
Admiral shares, which typically cannot be purchased at a broker, require a minimum $10,000 investment for index funds and $50,000 for most actively managed funds. In contrast, Investor class funds typically require an initial deposit of $3,000.
The nine Vanguard Admiral funds average expense ratios 48% lower than their counterparts. One of the best values and a top pick is Vanguard Growth Index Admiral (VIGAX), which charges only 0.09%, versus 0.24% for its twin. Up 2.3% this year, the fund focuses on large-company growth stocks.
Richard J. Moroney, CFA, Dow Theory Forecasts, www.dowtheory.com, 800-233-5922, October 20, 2014