Vanguard Windsor Fund

Overview

The managers at Vanguard Windsor like their stocks cheap. As value investors, they focus on picking undervalued companies they believe have potential to grow.

As of November 27, 2023, the fund has assets totaling $21.23 billion. Its portfolio consists largely of investments in large-cap stocks, mostly in the United States, and the managers can invest up to 30 percent in companies outside the U.S.

With holdings like American International Group, Fannie Mae, and Freddie Mac, the fund suffered during the downturn. Still, management sees untapped value in financials, which as of the end of September 2010 made up the fund’s largest sector holding. In an annual report, management says, “A roller-coaster ride isn’t unusual for Windsor because of its focus on out-of-favor companies that the fund’s advisors believe have unrecognized merit.” Meanwhile, in 2010 the fund has struggled to find its footing. The fund has returned 2.99 percent over the past year and 15.30 percent over the past three years.

The fund’s management looks for stocks that are out of favor. In a semi-annual report, management notes, “Value stocks have strongly outperformed coming out of past bear markets, often for extended periods.” The fund normally maintains fairly diversified holdings, with the two largest sector holdings being in financial and consumer companies. The fund has returned 10.06 percent over the past five years and 8.81 percent over the past decade.