You’re probably looking at your portfolio and wondering why value stocks feel like they're finally waking up after a decade-long nap. Or maybe you're just staring at the $50,000 minimum for Vanguard Windsor II Fund Admiral Shares and asking, "Is this actually worth the entry price?"
Honestly? It depends on whether you believe "cheap" is a strategy or a trap.
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Most people confuse this fund with its older sibling, the original Windsor Fund. They aren't the same. While the original is the legendary contrarian play, Windsor II (VWNAX) is the diversified, multi-manager workhorse that tries to find the middle ground between "on sale" and "actually growing." As of early 2026, it’s navigating a market that has been obsessed with AI and tech, yet the fund is quietly sitting on a massive pile of cash-flow-heavy giants.
Why Vanguard Windsor II Fund Admiral Shares Still Matter in 2026
Value investing isn't dead. It just smells funny sometimes.
For a long time, if you weren't buying high-flying tech, you were losing. But Vanguard Windsor II Fund Admiral Shares doesn't just buy "dying" companies. It’s a Large-Cap Value fund that currently holds about 185 stocks. That's a lot of diversification. It doesn't bet the farm on one idea.
The fund’s secret sauce—or its complication, depending on how you look at it—is its multi-manager structure. Vanguard doesn't just hire one person to pick the stocks. They hire a small army of institutional heavyweights. We’re talking about firms like Aristotle Capital, Hotchkis and Wiley, and Sanders Capital.
The Big Shake-up at the Top
Just recently, in late 2025, Vanguard swapped out Lazard Asset Management and brought in Harris | Oakmark. This is a huge deal. Bill Nygren and his team are now managing a 25% chunk of the Windsor II assets. If you know anything about the Oakmark style, you know they are "deep value" hunters. They want companies trading at a massive discount to intrinsic value.
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This mix of managers means you get different flavors of value:
- Aristotle looks for high-quality businesses that happen to be misunderstood.
- Hotchkis and Wiley goes for the stuff that looks truly beaten down.
- Sanders Capital takes a more valuation-sensitive approach across the board.
Because of this, the fund doesn't usually crash as hard as the "pure" value funds when the market shifts, but it might not rocket as high during a speculative frenzy either. It’s a "less bumpy ride," as Vanguard likes to put it.
The Cost of Admission (and Staying)
Let's talk about the $50,000 elephant in the room.
To get into the Admiral Shares (VWNAX), you need 50 grand. If you don't have that, you're stuck with the Investor Shares (VWNFX), which have a $3,000 minimum but a higher expense ratio.
Currently, the expense ratio for VWNAX sits around 0.23% to 0.25%.
Is that cheap?
Compared to the average large-cap value fund (which often charges 0.85% or more), it's a steal. But compared to a total market index fund that charges 0.03%, it’s expensive. You are paying that extra bit for the managers to try and beat the Russell 1000 Value Index.
Performance Reality Check
In 2025, the fund returned a solid 18.69%, outperforming its benchmark (the Russell 1000 Value Index) which did 15.91%. That’s a win. Over 10 years, it’s averaged around 12.7% annually.
But here is what most people get wrong: they compare it to the S&P 500.
Don't do that.
The S&P 500 is heavy on growth and tech. Windsor II is built to win when the "expensive" stocks finally get tired. If you compare it to the S&P over the last five years, Windsor II usually trails. If you compare it to other value funds, it’s often near the top of the pack.
What’s Actually Inside the Fund?
You might think a "value" fund is full of old oil companies and tired banks.
Well, sort of.
Financials make up a huge chunk (around 17-18%), and you’ll see plenty of Health Care and Industrials. But surprisingly, as of late 2025/early 2026, Information Technology is still a top-three sector. The managers are finding value in tech companies that have massive cash flows but perhaps "slower" growth than the AI darlings.
- Microsoft (MSFT): Still a top holding.
- Apple (AAPL): Often makes an appearance when the price dips.
- Alphabet (GOOGL): A favorite for value managers who like the search moat.
- Financial Giants: Think Bank of America or HCA Healthcare.
The fund also keeps a small amount of cash on the sidelines—usually around 4-5%. This gives the managers "dry powder" to buy when the market panics.
The Risks: What Could Go Wrong?
No investment is a safe harbor.
First, there’s Manager Risk. Since there are four different advisory firms picking stocks, one of them could have a terrible year and drag down the rest. It’s a "too many cooks in the kitchen" scenario that sometimes leads to average performance rather than stellar gains.
Then there is Style Risk. If "Growth" stocks (like Tesla or Nvidia) keep dominating for another decade, value funds like Windsor II will feel like a boat anchor on your portfolio. You have to be okay with looking "wrong" for long periods.
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Also, watch out for the Financials exposure. Because value funds love banks, they are sensitive to interest rate changes. If the Fed does something weird in 2026, the Windsor II Fund will feel it immediately.
How to Actually Use This Information
If you’re already in Vanguard Windsor II Fund Admiral Shares, or thinking about jumping in, here is the move:
- Check your "Home Bias": This fund is almost 90% U.S. stocks. If you don't have international exposure elsewhere, you're betting entirely on the American economy.
- Rebalance, don't chase: Don't buy this just because it had a good 2025. Buy it because your portfolio is too heavy on tech and you need a "ballast" of companies that actually make profits and pay dividends.
- The 5-year Rule: Do not put money in here that you need before 2031. Value cycles take years to play out.
- Tax Efficiency: This is an actively managed fund. It turns over about 22-40% of its holdings every year. That means capital gains distributions. If you can, keep this in an IRA or 401(k) to avoid the annual tax bill.
Value investing isn't about being smart; it's about being patient when everyone else is being greedy. Windsor II is the tool for people who prefer a steady climb over a rocket ship that might run out of fuel.
Next Steps for Investors
Check your current asset allocation to see if you are over-weighted in Large-Cap Growth. If more than 30% of your portfolio is in the "Magnificent Seven" or similar tech giants, adding a position in a diversified value fund like VWNAX can provide the necessary structural balance to survive a market rotation. Always review the most recent prospectus for updated manager allocations following the 2025 transition to Harris | Oakmark.