Fund #1:

Growth Equity (VGEQX)

Turner Investment Partners runs this fund, and since early 2000, their high-turnover earnings momentum strategy has been bad news for shareholders. The fund plummeted to a terrifying depth of -68.7% in two years and has yet to recover. While the fund seems to have tracked its benchmark, the Russell 1000 Growth Index, pretty closely, I found that after comparing rolling returns, the fund lagged on average and hit lower lows at its worst. But to add insult to injury, it’s also one of Vanguard’s most expensive funds, with an expense ratio of 0.88%. That’s a surefire way to increase losses and reduce gains. Who would want that?