Vanguard Extended Market's index construction leads to an unintentional but persistent growth tilt, which has landed the fund in the mid-growth Morningstar Category. As the strategy does not deliberately target growth stocks, we have downgraded its Process rating to Average from Above Average. As a result, we have downgraded the Morningstar Analyst Rating for its Investor share class to Bronze from Silver, and to Bronze from Gold for the remaining share classes. This reflects our confidence in its ability to outperform new category peers in the long run, despite its roundabout growth bias.
Will VEXAX outperform in future?
Get our overall rating based on a fundamental assessment of the pillars below.
The Process Pillar is our assessment of how sensible, clearly defined, and repeatable VEXAX’s performance objective and investment process is for both security selection and portfolio construction.
The People Pillar is our evaluation of the VEXAX management team’s experience and ability. We find that high-quality management teams deliver superior performance relative to their benchmarks and/or peers.
The Parent Pillar is our rating of VEXAX’s parent organization’s priorities and whether they’re in line with investors’ interests.