Fund Evaluator:

Vanguard Capital Opportunity Inv Overview

Vanguard Capital Opportunity Inv (VHCOX) is an actively managed U.S. Equity Large Blend fund. Vanguard launched the fund in 1995.

The investment seeks long-term capital appreciation. The fund invests mainly in U.S. stocks, with an emphasis on companies that are considered to have prospects for rapid earnings growth. It does not focus on companies of any particular size, however; the advisor may emphasize mid-cap stocks. The fund's investment advisor uses fundamental research to identify stocks that are expected to outperform the market over a three- to five-year time horizon and that are available at attractive prices relative to their fundamental values.

About Vanguard Capital Opportunity Inv (VHCOX)

There are 5 members of the management team with an average tenure of 22.66 years: M. Ansari (2007), James Marchetti (2015), Alfred Mordecai (1999), Theo Kolokotrones (1998), Joel Fried (1998). Management tenure is more important for actively managed funds than passive index funds.

The fund has 2 primary benchmarks: DJ US Total Stock Market TR USD index with a weighting of 100% and Russell 3000 Growth TR USD index with a weighting of 100%. Vanguard Capital Opportunity Inv has 193 securities in its portfolio. The top 10 holdings constitute 30.0% of the fund’s assets. The fund meets the SEC requirement of being classified as a diversified fund. The fund is not considered to have an ESG focus with its investment selection and management.

Vanguard Capital Opportunity Inv is part of the Equity global asset class and is within the U.S. Equity fund group. Vanguard Capital Opportunity Inv has 11.7% of its portfolio invested in foreign issues. The overall assets allocated to domestic stock is 85.2%. There is 11.7% allocated to foreign stock, and 0.0% is allocated to preferred stocks. The bond allocation as a percentage of total assets is 0.0% (0.0% domestic bond, 0.0% foreign bond and 0.0% convertible bond). Vanguard Capital Opportunity Inv has 3.1% of the portfolio in cash.

Assets Under Management

The fund has $1 billion in total assets, which is below the $6 billion average for the Large Blend category. Normally, lower assets under management translates to higher average expense ratios, and greater total assets are desired. However, for some investment categories, such as small-cap investing, it may be difficult for the manager to fully employ the desired active strategy if assets grow too large or too quickly.

VHCOX Performance and Fees

The expense ratio measures how much of a fund’s assets are used for administrative expenses and operating expenses, including adviser fees and fees for the transfer agent and custodial services. The Vanguard Capital Opportunity Inv expense ratio is average compared to funds in the Large Blend category. Vanguard Capital Opportunity Inv has an expense ratio of 0.40%, which is 51% lower than its category average, making the fund expense ratio grade a A. While it is difficult to predict returns, it is known that high annual expense ratios reduce your rate of return, and excessive fees are difficult to overcome. Active management normally comes with higher expense ratios than passive index management. Certain investment categories such as small company and foreign also normally have higher expense ratios. It is best to compare fund expense ratios against the category averages for meaningful assessments.

High portfolio turnover can translate to higher expenses and lower aftertax returns. Vanguard Capital Opportunity Inv has a portfolio turnover rate of 11%, indicating that holds its assets around 0.1 years. By way of comparison, the average portfolio turnover is 48% for the Large Blend category.

Recently, in the month of June 2026, Vanguard Capital Opportunity Inv returned 5.4%, which earned it a grade of A, as the Large Blend category had an average return of -0.2%. The letter grades of A, B, C, D and F are based upon relative rankings within the investment category. A grade of A, for example, would indicate that the return is in the highest 20% for that time period compared to all funds in that category.

Vanguard Capital Opportunity Inv has a trailing yield of 0.33%, which is below the 0.56% category average. The fund normally distributes its income annually and its capital gains annually.

It’s natural to seek the best-performing investments, but you must consider the relationship between risk and return and the impact of costs and taxes on your realized returns.

Vanguard Capital Opportunity Inv Grades

Year to date, the fund has returned 30.5%, 21.5 percentage points better than the category, which translates into a grade of A. The fund has returned 55.9% over the past year (grade of A), 27.3% over the past three years (grade of A) and 14.8% per year over the past five years (grade of A) and 18.1% per year over the past 10 years (grade of A).

For more mutual fund grades, analysis and screening tools to help your investment discovery, join AAII for a $2, full-access trial. Learn more here: https://invest.aaii.com/membership.

Otherwise, for more information about Vanguard Capital Opportunity Inv, including its riskiness, submit your email to unlock the rest of the article.