Vanguard U.S. Growth Fund (VWUAX)

[chang]

Just looking at VWUAX's portfolio stats here:

investor.vanguard.com/mutual-funds/profile/portfolio/vwuax

Compared to the Russell 1000 Growth Index (benchmark), VWUAX looks pretty aggressive. P/E and earnings growth rate significantly higher (but ROE lower?).

I've got this in an IRA; I initiated the position last fall when the Nasdaq dropped around 15% (October?). My IRAs contains "hold forever" positions (in principle, anyway) so I would only add to this, not sell. I do have some cash in this IRA which I want to deploy into existing positions. In fact, I am looking to lighten up on U.S. LCG and what I may do is to sell off all the FSPGX in my Fido Individual Account and balance this by increasing the VWUAX position.

Anyone else own this VG fund? Do you consider it a "turbocharged" LCG fund compared to the index? When I first invested in it I had some doubts about the large number of subadvisors/managers, but the fund does not seem over-diversified (242 stocks, 10 largest holdings = 38.00% of total net assets) and I cannot complain about its performance.

[nromsted]

I'm not a current holder of VWUAX, although I held it in an IRA from 1999-2003 (and lost a lot in growth those years). I would think the Growth Index VIGAX or its ETF VUG, would be fair comparison, and cheaper.

I have not been a big fan of Vanguard's multi-manager approach - it seems to clutter up the decision-making process. I can see it being effective when the fund AUM are large and the market sector it invests in is relatively small (like foreign small cap). But the US Growth sector is huge.

[jcserc]

Similar to nromsted, I don't own or have experience with VWUAX but have a minimal position in VIGIX (it is the best option in an old HSA account). I can tell from routine portfolio monitoring that VIGIX tends to move more aggressively than other LCG funds I hold (i.e., APGAX, CSIEX). Although the expense rate is lower in the case of VIGIX if I wanted to add to LCG I would probably go with my other holdings given the better volatility metrics (at the moment I am not adding to any LCG fund - using SCHD for my adds).

[chang]

Thanks nromsted jcserc. I agree VG sometimes seems to have too many cooks in their multi-subadvised funds. But VWUAX has been doing well, including during the short time I've had it. VIGIX looks like VIGAX except with a lower ER (0.04% vs. 0.05%). I bought a similar index fund from Fido (FSPGX) earlier in the year, which I plan to liquidate in the next 1-2 weeks to fund other purchases. I like the index fund for a taxable acct but hold VWUAX in an IRA.