INVESTMENT STRATEGIES

 

Active equity investments

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    Active management from the start

    We began in 1975 as an active-only fund provider—and our commitment to active investing remains strong. Today, we’re the world’s third-largest active manager, with $1.9 trillion in active strategies, including more than $760 billion in active equity and balanced funds.1  

    Active management—it’s in our DNA 

    50 +
    Years offering active equity
    3rd
    Largest active equity provider
    11
    Active funds offered at our founding
    Source: Vanguard, using Morningstar data, as of December 31, 2025
    1. Manager selection
    2. Top talent
    3. Low costs
    4. Long-term performance

      Unlock the power of active equity funds

      Our framework for evaluating current and prospective managers emphasizes qualitative criteria, not short-term performance.

      Vanguard’s dedicated manager search team scours the globe for world-class managers. With the flexibility to engage external managers, we broaden our access to talent—allowing us to match the right managers to each strategy.

      Over time, we’ve built lasting partnerships with more than 20 leading external managers, who have an average tenure with us of more than 18 years. Our global scale and strong reputation make us an attractive partner for top-tier investment firms.

      We maintain long-term partnerships with leading global managers

      • Wellington Management Company
      • PRIMECAP Management Company
      • Donald Smith & Co.
      • Jennison Associates
      • Sanders Capital
      • ARGA Investment Management
      • ArrowMark Partners
      • Ariel Investments
      • Sprucegrove Investment Management
      • Schroder Investment Management North America
      • Vanguard Quantitative Equity Group
      • Baillie Gifford Overseas
      • Pzena Investment Management
      • Frontier Capital Management
      • D. E. Show Investment Management
      • Stephens Investment Management Group
      • Ninety One North America
      • Aristotle Capital Management
      • Hotchkis & Wiley
      • Los Angeles Capital Management
      • ClearBridge Investments
      • Cooke & Bieler
      • Altrinsic Global Advisors
      • Tremblant Capital
      • Harris Associates
      Source: Vanguard, as of December 31, 2025.
      See more details about the active portfolio managers we partner with, including their firms and the funds they manage. https://workplace.vanguard.com/tools/investment/active-portfolio-managers.html#
      Our cost advantage lowers the hurdle for active success and lets more of any return accrue for your clients. Vanguard’s average active equity fund expense ratio is just 25 basis points (bps)—that’s roughly 40 bps below industry levels on an asset-weighted basis.2

      Our consistent low costs help improve the odds of active success

      Asset-weighted average expense ratios

      Source: Vanguard calculations, using data from Morningstar, Inc., as of December 31, 2025.

      Note: One basis point = 1,000 of 1%.

      Our active equity funds have delivered net outperformance, while the broader industry has seen flat or negative results.

      Source: Vanguard calculations, using data from Morningstar, Inc., as of December 31, 2025.

      Note: One basis point = 1,000 of 1%.

      Featured retirement plan products

      Our diverse lineup of single- and multimanager active funds and ETFs spans strategies, styles, sizes, and regions. Meet your active equity needs with confidence.
      VZICX
      Vanguard International Core Stock Fund Admiral Shares

      EXPENSE RATIO
      0.38%
      as of January 28, 2026
      VPMAX
      Vanguard PRIMECAP Fund Admiral Shares

      EXPENSE RATIO
      0.27%
      as of January 28, 2026
      VSEQX
      Vanguard Strategic Equity Fund

      EXPENSE RATIO
      0.17%
      as of January 28, 2026
      Explore our active equity funds and ETFs

      Equity investment insights

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      Sources

      1 Vanguard, using Morningstar data, as of December 31, 2025.

      2 Vanguard, using Morningstar data, as of December 31, 2025. Industry-wide data includes U.S.-domiciled active equity funds and ETFs, excluding funds of funds.

      3 LSEG Lipper, as of December 31, 2025. For the 10-year period, 32 out 39 Vanguard active equity funds outperformed their peer-group averages. Results will vary for other time periods. Only funds with a minimum 10-year history were included in the comparison. The performance data shown represent past performance, which is not a guarantee of future results. Investment returns and principal value will fluctuate, so investors’ shares, when sold, may be worth more or less than their original cost. Current performance may be lower or higher than the performance data cited. For performance data current to the most recent month-end, visit our website at vanguard.com/performance. The performance of an index is not an exact representation of any particular investment, as you cannot invest directly in an index.

      4 Vanguard calculations, using data from Morningstar, Inc. The performance of each Vanguard and non-Vanguard fund was compared with that of its benchmark as defined by Morningstar using monthly return data ended December 31, 2025.  The monthly returns for all Vanguard active equity funds, including those that were merged or liquidated during the period, were included in the performance calculations. The active equity portions of Vanguard balanced funds were excluded. Annualized asset-weighted excess returns were generated by calculating the asset-weighted cross-section monthly returns and then generating a time series set of returns. All fund performance data are net of fund expense ratios. Cost advantage is measured as the asset-weighted expense ratio differential between Vanguard and non-Vanguard equity funds used in the analysis. The performance data shown represent past performance, which is not a guarantee of future results. Investment returns and principal value will fluctuate, so investors’ shares, when sold, may be worth more or less than their original cost. Current performance may be lower or higher than the performance data cited. For performance data current to the most recent month-end, visit our website at vanguard.com/performance. The performance of an index is not an exact representation of any particular investment, as you cannot invest directly in an index.

      Notes

      For more information about Vanguard funds or Vanguard ETFs, visit advisors.vanguard.com 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.

      Vanguard ETF Shares are not redeemable with the issuing Fund other than in very large aggregations worth millions of dollars. Instead, investors must buy and sell Vanguard ETF Shares in the secondary market and hold those shares in a brokerage account. In doing so, the investor may incur brokerage commissions and may pay more than net asset value when buying and receive less than net asset value when selling.

      All investing is subject to risk, including possible loss of principal.

      Investments in stocks issued by non-U.S. companies are subject to risks including country/regional risk and currency risk.

      Prices of mid- and small-cap stocks often fluctuate more than those of large-company stocks.