I’ve been looking at the Vanguard Energy Fund (VGENX) as part of my current studies on sector specific funds, and have been pleasantly surprised by the historical performance of the fund. Since 1984, it has beaten the S&P 500 by about a percentage point and delivered returns slightly north of 10% annually to investors.
This historical outperformance is impressive given the sharp decline in the fund’s performance since June 20, 2014. That was the day it hit a high of $77.38, and the Vanguard Energy Fund (VGENX) has since fallen to $38.32 per share. Even though the fund came in existence back in 1983, total returns still take a sharp hit when the measuring period includes a period towards the bottom of the business cycle. If someone bought at the May launch and sold in June 2014 at the thirty-year mark, the annual returns would be nearly 13%. Instead, you … Read the rest of this article!