Active management infographic

1 Source: Vanguard, based on data as of December 31, 2016.

2Successful funds are those that survived for the 15 years and also outperformed their prospectus benchmarks.

3Data are as of December 31, 2016. Our analysis was based on expenses and fund returns for active equity funds available to U.S. investors at the start of the period. The oldest and lowest-cost shareclass was used to represent a fund when multiple share classes existed. Each fund’s performance was compared with that of its prospectus benchmark. Funds that were merged or liquidated were considered underperformers for the purpose of this analysis. The following fund categories were included: small-cap value, small-cap growth, small-cap blend, mid-cap value, mid-cap growth, mid-cap blend, large-cap value, large-cap growth, and large-cap blend. Sources: Vanguard calculations, based on data from Morningstar, Inc.

4Because of expenses, most index funds also underperform their benchmarks. Our analysis was based on expenses and fund returns for active equity funds available to U.S. investors at the start of each period. The oldest and lowest-cost share class was used to represent a fund when multiple share classes existed. Each fund’s performance was compared with that of its prospectus benchmark. Funds that were merged or liquidated were considered underperformers for the purposes of this analysis. The following fund categories were included: small-cap value, small-cap growth, small-cap blend, mid-cap value, mid-cap growth, mid-cap blend, large-cap value, large-cap growth, and large-cap blend. Sources: Vanguard calculations, based on data from Morningstar, Inc., as of December 31, 2016.

5Sources: Vanguard and Morningstar, Inc., based on data as of December 31, 2016.

6For the one-year period, 10 of 10 money market funds, 43 of 51 bond funds, 27 of 35 balanced funds, and 36 of 48 stock funds, or 116 of 144 Vanguard funds outperformed their peer-group averages. For the three-year period, 10 of 10 money market funds, 41 of 44 bond funds, 22 of 22 balanced funds, and 43of 48 stock funds, or 116 of 124 Vanguard funds outperformed their peer-group averages. For the five-year period, 10 of 10 money market funds, 42 of 44 bond funds, 18 of 21 balanced funds, and 44 of 46 stock funds, or 114 of 121 Vanguard funds outperformed their peer-group averages. For the ten-year period, 10 of 10 money market funds, 41 of 44 bond funds, 19 of 19 balanced funds, and 41 of 44 stock funds, or 111 of 117 Vanguard funds outperformed their peer-group averages. Results will vary for other time periods. Only funds with a minimum one-, three-, five-, or ten-year history, respectively, were included in the comparison. Source: Lipper, a Thomson Reuters Company. Note that the competitive performance data shown represent past performance, which is not a guarantee of future results, and that all investments are subject to risks. For the most recent performance, visit our website at vanguard.com/performance.

Notes:

For more information about Vanguard funds, visit vanguard.com or call 877-662-7447 to obtain a prospectus or, if available, a summary prospectus. Investment objectives, risks, charges, expenses, and other important information are contained in the prospectus; read and consider it carefully before investing.

All investing is subject to risk, including the possible loss of the money you invest. Past performance is no guarantee of future returns. The performance of an index is not an exact representation of any particular investment, as you cannot invest directly in an index. There may be other material differences between products that must be considered prior to investing.

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