Fund Evaluator:
Vanguard Strategic Equity Inv (VSEQX)
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Best Performing in Mid-Cap Blend Over the Last Year
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| 36.0% | Vanguard Strategic Equity Inv (VSEQX) |
Fund Details
Vanguard Strategic Equity Inv Overview
Vanguard Strategic Equity Inv (VSEQX) is an actively managed U.S. Equity Mid-Cap Blend fund. Vanguard launched the fund in 1995.
The investment seeks long-term capital appreciation. The fund invests in small- and mid-capitalization domestic equity securities based on the advisor's assessment of the relative return potential of the securities. The advisor selects securities that the advisor believes offer an appropriate balance between strong growth prospects and reasonable valuations relative to their industry peers. The advisor does this by using a quantitative process to evaluate all of the securities in the benchmark, the MSCI U.S. Small + Mid Cap 2200 Index, while seeking to maintain a risk profile similar to that of the index.
About Vanguard Strategic Equity Inv (VSEQX)
There are 1 members of the management team with an average tenure of 5.34 years: Cesar Orosco (2021). 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 MSCI US Small&Mid Cap 2200 GR USD index with a weighting of 100%. Vanguard Strategic Equity Inv has 610 securities in its portfolio. The top 10 holdings constitute 7.4% 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 Strategic Equity Inv is part of the Equity global asset class and is within the U.S. Equity fund group. Vanguard Strategic Equity Inv has 2.2% of its portfolio invested in foreign issues. The overall assets allocated to domestic stock is 97.1%. There is 2.2% 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 Strategic Equity Inv has 0.7% of the portfolio in cash.
Assets Under Management
The fund has $11 billion in total assets, which is above the $1 billion average for the Mid-Cap 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.
VSEQX 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 Strategic Equity Inv expense ratio is low compared to funds in the Mid-Cap Blend category. Vanguard Strategic Equity Inv has an expense ratio of 0.17%, which is 83% 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 Strategic Equity Inv has a portfolio turnover rate of 62%, indicating that holds its assets around 0.0 years. By way of comparison, the average portfolio turnover is 51% for the Mid-Cap Blend category.
Recently, in the month of June 2026, Vanguard Strategic Equity Inv returned 4.8%, which earned it a grade of B, as the Mid-Cap Blend category had an average return of 4.1%. 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 Strategic Equity Inv has a trailing yield of 0.98%, which is above the 0.47% 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 Strategic Equity Inv Grades
Year to date, the fund has returned 20.6%, 5.3 percentage points better than the category, which translates into a grade of B. The fund has returned 36.0% over the past year (grade of A), 21.1% over the past three years (grade of A) and 12.8% per year over the past five years (grade of A) and 13.9% per year over the past 10 years (grade of A).
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VSEQX Trailing NAV Total Returns Data as of 6/30/26
| Last Month |
Last Quarter |
Ann'l. 1Yr |
Ann'l. 3Yr |
Ann'l. 5Yr |
Ann'l. 10Yr |
|
| VSEQX Return (NAV) | 4.8% | 18.6% | 36.0% | 21.1% | 12.8% | 13.9% |
| VSEQX Grade | B | A | A | A | A | A |
| +/- Category | 0.7% | 4.1% | 13.9% | 6.3% | 4.6% | 2.9% |
| Mid-Cap Blend Avg | 4.1% | 14.4% | 22.0% | 14.7% | 8.2% | 11.0% |
| VSEQX Tax Cost Ratio | na | na | 2.7% | 2.4% | 2.9% | 2.1% |
VSEQX Annual NAV Total ReturnsData as of 6/30/26
| 2026 | 2025 | 2024 | 2023 | 2022 | 2021 | 2020 | 2019 | 2018 | 2017 | 2016 | |
| VSEQX Return (NAV) | 20.6% | 15.4% | 17.2% | 19.2% | -11.8% | 30.9% | 10.3% | 26.8% | -11.9% | 13.8% | 17.9% |
| VSEQX Grade | B | A | A | B | B | A | D | C | D | D | B |
| +/- Category | 5.3% | 7.4% | 3.6% | 2.8% | 3.3% | 6.6% | -3.0% | -1.7% | -1.6% | -2.3% | 3.3% |
| Mid-Cap Blend Avg | 15.3% | 8.0% | 13.5% | 16.4% | -15.1% | 24.3% | 13.3% | 28.5% | -10.3% | 16.1% | 14.6% |
| Risk Measures | |
| Standard Deviation: | 17.0% |
| Total Risk Index: | 1.40 - High |
| Category Risk Index: | 1.09 - High |
| Category Risk Grade: | F (86% Rank) |
| Beta: | 1.08 |
| R-Squared: | 69% |
| Leveraged Fund: | No |
| Inverse Fund: | No |
| Portfolio Characteristics | |
| Equity Investment Style: | Small-Cap Blend |
| Bond Investment Style: | na |
| Yield: | 1.0% |
| Dividend Distribution: | Annually |
| Cap Gains Distribution: | Annually |
| Total Assets: | $11481 Mil |
| Fund Total Assets: | $11,481 Mil |
| Share Class Type: | Inv |
| Portfolio Turnover: | 62% |
Management Team
| Number of Managers: 1 | |||
| Longest Tenure: 5.3 years | |||
| Average Tenure: 5.3 years | |||
| Managers (Year): Orosco Cesar (2021) | |||
Portfolio Composition (as of 3/31/26)
| # of Holdings: | 610 |
| % in Top 10 Holdings: | 7.4% |
| Fund is Non-Diversified: | No |
| % in Foreign Issues: | 2.2% |
Portfolio Allocation |
|
| Domestic Stock: | 97.1% |
| Foreign Stock: | 2.2% |
| Preferred Stock: | 0.0% |
| Domestic Bond: | 0.0% |
| Foreign Bond: | 0.0% |
| Convertible Bond: | 0.0% |
| Other: | 0.0% |
| Cash: | 0.7% |
Purchase Information
| Fund Family: | Vanguard |
| Phone Number: | 800-662-7447 |
| Website: | www.vanguard.com |
| Status: | Open |
| Inception Date: | August 14, 1995 |
| Min. Initial Purchase: | $3,000 |
| Min. Initial IRA Purchase: | $ 0 |
| True No-Load: | Yes |
| Front Load Maximum: | 0.00% |
| Deferred Charge Maximum: | 0.00% |
| Redemption Charge Maximum: | 0.00% |
| 12b-1 Fee: | na |
Expenses and Fees | |
| Expense Ratio (%): | 0.17% ( Rating : Low ) |
| Category Average Expense Ratio (%): | 0.98% |
| Share Class: | Vanguard Strategic Equity Inv |
| Min. Subsequent Purchase: | $ 1 |
| Min. Subsequent IRA Purchase: | $ 0 |
