Vanguard Equity-Income Fund Investor Shares (VEIPX)(https://finance.yahoo.com/quote/VEIPX/holdings?p=VEIPX) seeks to provide an above-average level of current income and reasonable long-term capital appreciation. The fund invests mainly in common stocks of mid-size and large companies whose stocks typically pay above-average levels of dividend income and are, in the opinion of the purchasing advisor, undervalued relative to similar stocks. In addition, the advisors generally look for companies that they believe are committed to paying dividends consistently. Under normal circumstances, it will invest at least 80% of its assets in equity securities. The fund uses multiple investment advisors.
According to Vanguard, the fund’s emphasis on slower-growing, higher-yielding stocks may cause the fund to lag a bit in a bull market. As of April 29, 2021, the fund has assets totaling almost $45.23 billion invested in 193 different holdings.
The fund’s expense ratio is 0.28 percent, which is categorized as low for funds in this category by Morningstar. The fund requires a minimum initial purchase of $3,000.
The fund’s risk compared to that of other funds in its peer group is considered below average for the trailing three, five and 10 years by Morningstar. The fund’s level of return is high for the trailing three- and 10-year periods and above average for the trailing five years.
The fund has trailing 12-month yield at 2.36 percent. The fund has returned 43.64 percent over the past year, 12.46 percent over the past three years, 11.19 percent over the past five years and 12.37 percent over the past decade.
The fund holds 2.22 percent in cash and 97.78 percent in stocks.
Top 10 Holdings (26.10% of Total Assets)
- Johnson & Johnson JNJ 4.35%\
- JPMorgan Chase & Co JPM 3.53%
- Procter & Gamble Co PG 2.69%
- Comcast Corp Class A CMCSA 2.55%
- Cisco Systems Inc CSCO 2.52%
- Bank of America Corp BAC 2.45%
- Pfizer Inc PFE 2.25%
- Verizon Communications Inc VZ 2.13%
- Eli Lilly and Co LLY 1.86%
- Merck & Co Inc MRK 1.77%
In conclusion, value investors should consider this fund, launched in March 1988, because it hold large stable stocks.