Vanguard Strategic Equity Fund
VSEQX
NASDAQ- -
USD
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- -
Capital Structure
FRC
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in mil. unless spec.Working Capital
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in mil. unless spec.Growth Rates
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in mil. unless spec.Quarterly Revenue
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in mil. unless spec.Quarterly Earnings Per Share
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in mil. unless spec.Quarterly Dividends Per Share
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in mil. unless spec.- Sector
- Financial Services
- Industry
- Asset Management
- Address
- P O Box 2600 Valley Forge PA United States of America 19482
- IPO Date
- Sep 1, 1995
- CIK
- 0000932471
- Website
- investor.vanguard.com
- Similar Companies
- Business
- Vanguard Horizon Funds - Vanguard Strategic Equity Fund (VSEQX) is an open-end mutual fund that seeks long-term capital appreciation by investing primarily in small- and mid-capitalization domestic equity securities selected through a quantitative systematic process assessing relative return potential based on factors including earnings growth, quality, management decisions, momentum, valuation, and short interest (a defensive measure). The fund employs twin models—a traditional quantitative model and a parallel machine-learning artificial intelligence version introduced in early 2023—to evaluate over 2,200 stocks in its MSCI US Small + Mid Cap 2200 benchmark universe, ranking them via an optimizer to construct a diversified portfolio of more than 550 holdings that remains sector-neutral with a slight small-cap bias (average market cap of USD 9 billion versus the benchmark's USD 11 billion). It offers investor shares with a net expense ratio of 0.17%, a minimum initial investment of USD 3,000, a trailing 12-month yield of 1.03%, and annual turnover of 62%; top holdings as of late 2025 include State Street Corp (0.86%), EMCOR Group Inc (0.84%), and eBay Inc (0.80%), with sector allocations led by financials (approximately 22%), technology (18%), and industrials (13%). Part of Vanguard Horizon Funds, a suite of actively managed funds distributed by Vanguard Marketing Corporation, VSEQX operates within the mid-cap blend category (with small-blend style characteristics) and targets long-term investors seeking exposure to high-quality small- and mid-cap U.S. companies trading at reasonable valuations relative to peers, maintaining total net assets of approximately USD 9.8 billion. Launched in August 1995 and headquartered at Vanguard's facilities in Valley Forge, Pennsylvania (part of The Vanguard Group, Inc., based in Malvern, Pennsylvania), the fund underwent significant enhancements under lead portfolio manager Cesar Orosco, who assumed responsibility in February 2021 following the retirements of prior managers James Stetler and Binbin Guo; Orosco expanded the holdings count from around 350 to over 550, aligned sector weightings more closely with benchmarks, and spearheaded the 2023 launch of the AI-enhanced model for more adaptive factor weighting amid fluctuating market conditions such as 2025 tariff impacts and interest rate shifts. Recent strategic developments at the fund and parent organization include Vanguard's early 2025 implementation of its largest fee reductions (costing an estimated USD 350 million), the establishment of a dedicated advice and wealth management division, and a June 2025 reorganization dividing oversight of its multi-trillion-dollar ETF and mutual fund lineup into Vanguard Capital Management (fixed income and global equity index) and Vanguard Portfolio Management (quantitative equity and active stock/multi-asset funds) to address operational challenges from rapid asset growth rivaling only BlackRock's inflows; the fund itself demonstrated resilience in 2025 with a 37% gain from April through November after an initial 16.5% year-to-date loss, achieving a top-decile result driven by stock selection in financials and consumer discretionary sectors.