The Vanguard Star Fund (VGSTX) Review

The Vanguard Star Fund Investor Shares is a balanced fund between stocks and fixed income and falls into Morningstar’s allocation – 50 to 70 percent equity category. The category includes a wide range of funds with varying strategies.

Disclaimer: This post may contain affiliate links. Please read our disclosure for more information.

Bottom Line:

This fund is not out there making bold and risky purchases, so is unlikely to net mouth-watering returns. However, it is a steady performer and the risk is not so great as to be concerning. For millennials who are worried about there being no money in the pension pot by the time they are allowed to retire, this could be a good steady investment. It is not likely to put an end to today’s money worries, however.

The Vanguard Star Fund (VGSTX) fund aims to create a balanced portfolio that can create steady returns.

This is achieved by investing in a mixture of stocks and domestic holdings. At present the split is 60% stock and 40% holdings. The fund currently has $22.4 billion invested across 12 different holdings.

These assets come from investments into 11 other funds owned by Vanguard.

In other words, this fund is a combination of 11 other funds, this dilutes the risk, but can also potentially dilute the rewards. The 11 funds that makeup STAR, are a mixture of 3, 4, and 5-star funds.

Does It Have Good Returns?

Out of 30 years of trading, the fund has had positive returns in 25 of those years. That is very steady going.

The highest year’s return was from 1995, where the fund grew by 29%. In the current year it looks to have grown by 4%.

So, the returns are generally positive. They are not astronomical, but they are better than a savings account. The results are above average for similar funds that all can be bought and sold using investing apps or brokerages.

App RatingCommissions
robinhood logo

★ 5.0/5 

$0$0

OPEN ACCOUNT
On Robinhood's website

M1 finance

★ 5.0/5

$0$100

OPEN ACCOUNT
On M1 Finance's website

fundrise

★ 5.0/5

0.15%$500

OPEN ACCOUNT
On Fundrise's website

public

★ 5.0/5

$0$0

OPEN ACCOUNT
On Public's website

webull logo

★ 4.9/5

$0$0

OPEN ACCOUNT
On Webull's website

Is This Fund Good for Beginner Investors?

This risk associated with this fund are about average for funds of its type, so it is not an excessively high-risk option. When linked with the above average returns it does mean that this fund could be a good choice for people who are new to investing.

It is a low-cost option with an expense ratio of 0.32%. This means for first time investors there is not a large amount risk involved, if you get cold feet and want to pull out.

If you have the funds to do so it is worth spreading your money across a range of funds to protect your investment. This fund would be a good steady component of a larger portfolio for a novice investor.

If you're new to investing you would benefit from a Beginner’s Guide to Investing In The Stock Market.

Does the Vanguard Star Fund have Good Reviews?

The majority of reviews of this fund suggest that it is a good fund, but not great. It is a relatively safe option that gives reasonable returns on funds.

Vanguard is a well-respected investment company that have been pioneering the mutual fund world with low-cost passive investment strategies.

It has been profitable significantly more often than it hasn’t been which in the current economic climate is an achievement.

See other review(s):

Top Holdings

Company% Net Assets
Vanguard Windsorâ„¢ II Inv VWNFX
14.19
Vanguard Short-Term Investment-Grade Inv VFSTX
12.48
Vanguard Long-Term Investment-Grade Inv VWESX
12.48
Vanguard GNMA Inv VFIIX
12.35
Vanguard International Value Inv VTRIX
9.45
Vanguard International Growth Inv VWIGX
9.29
Vanguard Windsorâ„¢ Inv VWNDX
7.76
Vanguard PRIMECAP Inv VPMCX
6.09
Vanguard Morganâ„¢ Growth Inv VMRGX
6.06
Vanguard US Growth Inv VWUSX
6.03

What is the Minimum Purchase Requirement and How Do They Compare to Other Similar Funds?

The Minimum Investment is $1,000. Most similar funds have minimums that range from $500-$3,000, so this fund is on the lower end of the scale.

Volatility Measurements

Volitility measures reflect the uncertainty or risk of change in a security's value.

  • Standard Deviation 7.009
  • Mean 0.77
  • Sharpe Ratio 1.255

Is it Too Conservative for Millennials?

This fund is not out there making bold and risky purchases, so is unlikely to net mouth-watering returns. However, it is a steady performer and the risk is not so great as to be concerning.

For millennials who are worried about there being no money in the pension pot by the time they are allowed to retire, this could be a good steady investment. It is not likely to put an end to today’s money worries, however.

About the author

Brian Meiggs
Hi, I'm Brian Meiggs! A personal finance expert, entrepreneur, and the founder of My Millennial Guide. My drive is to help others unlock the wealth of freedom and pave the path to financial success. With my bachelor's degree in finance, I help millennials follow the smart money in order to increase their earning potential and start building wealth for the future. I write regularly about side hustles, investing, and general personal finance topics aimed to help anyone earn more, pay off debt, and reach financial freedom. I have been quoted in major publications including Business Insider, Yahoo Finance, NASDAQ, Discover, GoDaddy, BiggerPockets, Fox News, Debt.com, Quick Sprout, Money Geek, MSN Money and many more!

Want An Extra $300?

Best Bank Bonus

Credit Card Bonus

Where to Invest $100

Ready to Make More Money?

Subscribe to the My Millennial Guide Newsletter to make more money, invest smarter, and start living better! Plus, get online side hustle ideas that actually work.

This fund is not out there making bold and risky purchases, so is unlikely to net mouth-watering returns. However, it is a steady performer and the risk is not so great as to be concerning. For millennials who are worried about there being no money in the pension pot by the time they are allowed to retire, this could be a good steady investment. It is not likely to put an end to today’s money worries, however.The Vanguard Star Fund (VGSTX) Review