The
The move comes at a time when assets in the fund have risen more than 50% over the last two years, thanks to market gains and shareholder demand, despite a hefty, $25,000 initial investment minimum.
Vanguard's actions were prompted by concerns from
This is not the first time that Vanguard has closed a fund when asset growth peaked. The company closed Health Care in 1999, for 10 months, and investors who bought in after the reopening were rewarded handsomely.
Over the past five years through March 22, Vanguard Health Care rose 9.7% annually on average, placing it in the top 15% of health-care sector funds, according to Morningstar. The no-load fund's 8.7% gain over the past 12 months ranks above 94% of its peers.
"Each closing is different," said John Demming, a Vanguard spokesman. "We close funds to protect the interests of the fund's long-term shareholders. In this instance with Health Care, we're taking the steps to help preserve Wellington's ability to employ its investment strategy to produce competitive long-term returns."
Christopher Davis, a