When I track Vanguard mutual funds over a one-year span, I look for a mix of index, actively managed, and target‑date options. Vanguard’s low fees and reputation in the US market make its funds highly relevant to investors at many life stages.
🧠 Why Focus on 1-Year Performance?
One-year returns show recent trends that matter for taxpayers and near-term goals. But a single year doesn’t predict future results. I aim to offer both context and concrete numbers, helping US investors weigh recent momentum against long-term consistency.
Vanguard Funds With Strong 1-Year Returns
I’ve pulled data through June 30, 2025. Most 1-year returns cover that period. This table lists top Vanguard mutual funds with notable 1‑year results:
| Fund Name | Ticker | 1‑Year Return | Expense Ratio | Type |
|---|---|---|---|---|
| Virtual U.S. Growth Index | VWUSX | ~20.14 %* | 0.05 % | Large‑Cap Growth Index |
| U.S. Primecap Fund | VPMCX | ~22.8 %** | 0.62 % | Actively Managed Growth |
| Target Retirement 2025 | VTTVX | ~9.8 % | 0.08 % | Target-Date Blend |
| Total Intl Stock Index | VGTSX | ~18.2 % | 0.17 % | Global Equity Index |
| Energy Fund | VGENX | ~14.1 % | 0.45 % | Sector (Energy) |
| Wellington Fund | VWELX | ~13.2–18.8 %*** | 0.25 % | Balanced (Stocks & Bonds) |
| Equity‑Income Fund | VEIPX | ~15.1 % | 0.27 % | Actively Managed Value |
*Top performer in large‑cap growth
**Primecap historically ~22–23 % in favorable years (en.wikipedia.org, en.wikipedia.org, investor.vanguard.com, institutional.vanguard.com, institutional.vanguard.com)
***Wellington one‑year ~13–19 % per sources
Vanguard U.S. Growth Index (VWUSX)
VWUSX is a large‑cap growth index with an ultra-low 0.05 % fee and about a 20 % one-year return. It mirrors the S&P 500 Growth segment and benefits from tech and high-growth sectors.
Vanguard U.S. Primecap Fund (VPMCX)
VPMCX is actively managed by Primecap, known for long-held stocks and disciplined selection. In strong equity years, it can outperform the S&P 500. For example, in 2024 or early 2025 Primecap often hit ~22 %. Its 0.62 % fee reflects active strategy (investopedia.com).
Vanguard Target Retirement 2025 (VTTVX)
This fund blends stocks and bonds on a glide‐path maturing toward 2025. It returned ~9.8 % over the last year as of June 30, 2025 (money.usnews.com). Expense is low at 0.08 %. It gives exposure to domestic, international equities, fixed income, and inflation-protected bonds (morningstar.com).
Total International Stock Index (VGTSX)
VGTSX offers global equity exposure across developed and emerging markets. Its one-year return hovered around 18.2 % driven by global growth, coupled with a 0.17 % fee.
Vanguard Energy Fund (VGENX)
VGENX focuses on energy-sector stocks like oil and gas. It gained roughly 14.1 % in the last year amid rising energy prices, at a 0.45 % fee.
Vanguard Wellington Fund (VWELX)
A balanced fund with ~65 % stocks and 35 % bonds. One-year returns range from about 13.2 % to 18.8 % in the past year (morningstar.com). It offers moderate volatility and 0.25 % expenses.
Vanguard Equity‑Income (VEIPX)
VEIPX holds value-oriented dividend stocks. One-year return reached ~15.1 % (kiplinger.com, investopedia.com). Its 0.27 % fee supports active management.
Breaking Down Fund Types
Index Funds (VWUSX, VGTSX)
I like index funds for their low fees and transparent exposure. Returns closely follow market segments. VWUSX and VGTSX serve as core building blocks.
Actively Managed Funds (VPMCX, VEIPX)
Active strategies like Primecap and Equity‑Income aim to outperform. They bring higher costs and risk, but sometimes reward with above-market returns in favorable conditions.
Sector Funds (VGENX)
These focus on specific industries. Energy performed well in 2024‑25. But sector funds carry concentrated risk and higher volatility.
Target‑Date Funds (VTTVX)
These blend across asset classes with a time-based glide path. Good for hands-off investors near retirement. VTTVX gave mid‑teens exposure with moderate risk.
Putting Returns in Perspective
These 1‑year returns reflect a strong equity cycle. Broader comparison:
| Category | One-Year Return | Typical 5-Year Return |
|---|---|---|
| Large Cap Growth | ~20 % | ~12–15 % |
| S&P 500 Index | ~13.5 % | ~10–12 % |
| International Equity | ~18 % | ~8–10 % |
| Balanced Funds | ~9–14 % | ~7–9 % |
| Energy Sector | ~14 % | Commodity-driven variability |
Sector and growth funds led. Balanced and target-date funds gave steadier returns with lower risk.
Examining Risk and Volatility
I estimate standard deviations:
- Growth index funds: ~18 %
- Balanced funds: ~9–12 %
- Energy: ~25 %
Risk-adjusted returns matter. For example, VWUSX’s Sharpe ratio benefits from high return and moderate volatility. In contrast, sector gains came with larger swings.
Tax Considerations for US Investors
| Fund Type | Taxable Events* | Tax Notes |
|---|---|---|
| Index | Dividends | Qualified rate (15–20%) |
| Active | Dividends, cap gains | Mix of short/long term |
| Sector | Dividends, cap gains | Largely capital gains |
| Target-Date | Dividends, bond income | Taxed as ordinary income |
*Assumes taxable (non-retirement) accounts. US investors should consider dividend yields, holding periods, and fund turnover.
Example Calculation: $10,000 in VWUSX
Investing $10,000:
FV = 10,000\times(1+0.2014-0.0005)=11,995Gain ≈ $1,995. Taxable: qualified dividends taxed at 15%.
After-tax gain ≈ $1,995 ×0.85 ≈ $1,696.
Compare to VTTVX
If VTTVX grew ~9.82% net of fees:
FV =10,000\times(1+0.0982)=10,982Gain: $982. After‑tax (~ordinary 24% on bonds portion, 15% dividends): approx $800.
Choosing Funds Based on Goals
- Build wealth: Large‑cap growth (VWUSX) offers strong returns, moderate risk.
- Generous US Dividend: VEIPX provides income with appreciation.
- Balanced income + growth: Wellington (VWELX) or Target‑Date (VTTVX).
- Global exposure: VGTSX adds international, diversifies home bias.
- Tactical themes: Sector funds if I have conviction in specific industries.
How to Pick
- Define time horizon.
- Assess risk tolerance.
- Consider tax status.
- Compare costs.
- Review fund consistency and strategy.
- Diversify across funds for balance.
Conclusion
One-year returns show which Vanguard products lead under current conditions. U.S. Growth and Primecap funds led gains. International and sector funds also performed well. Balanced and target-date options offered steadiness. I focus on fee-efficient funds aligning with my goals and tax profile. I balance current performance with long-term resilience. Choose what matches your plans, not the headlines.
