What Is a Family of Funds?

By Catherine Brock – Updated Sep 14, 2025 at 9:48 PM EST

Key Points

Investing in one fund family can simplify research and reduce costs.
Fund families might limit diversification, potentially increasing investment risk.
Research fund families using tools like the Morningstar Fund Family 150 report.

Sneakers and handbags have brands, while mutual funds and exchange-traded funds (ETFs) have fund families. Vanguard and Schwab (SCHW +3.60%) may not have iconic logos like Nike (NKE +1.03%), but they do have an overarching investing style that flows through to all their funds.

Read on to learn the must-know details about fund families, including the pros and cons of investing with one family of funds and how to research fund families. We'll also take a closer look at one of the most popular families for fund investors.

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Person at desk is looking at laptop and writing notes. — Image source: Getty Images.

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Asset Classes

A grouping of investments based on shared behaviors, characteristics, and regulations.

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Cons: Potential for quick decisions

It can be easy to assume that if one fund in a family performs well, the sibling funds will perform well, too. That assumption can encourage you to make quick decisions you'll regret later.

Unfortunately, inconsistent or unexpected performance is given in investing. This is true whether you're holding your money within one fund family or not. So, make it a non-negotiable task to conduct thorough research before trading any security.

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Market Share

Market share is the percentage of total revenue that a product, service, or company accounts for in a category.

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Retail investors can open brokerage accounts, individual retirement accounts (IRAs), Uniform Gift to Minors Act (UGMA) accounts, Uniform Transfers to Minors Act (UTMA) accounts, and 529 plans directly with Vanguard. Annual account fees range from a flat $25 to $25 per Vanguard mutual fund held in the account. Fee waivers are available for account holders who reach certain balances with their Vanguard assets.

The perks of holding a brokerage account with Vanguard include no minimum opening balance requirement, no fees to buy and sell Vanguard funds, and access to low-cost investing guidance and research.

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About the Author

Catherine grew up in Southern California wearing a lot of black and trying to perfect the art of sarcasm. Prior to joining The Fool as a contract writer, Catherine was climbing the corporate ladder in marketing roles and dabbling in too many side hustles. When she's not writing, she can be found riding a horse in the country or shopping online for clothes.

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@catherinejbrock

Charles Schwab is an advertising partner of Motley Fool Money. Catherine Brock has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Nike. The Motley Fool recommends Charles Schwab and recommends the following options: short September 2025 $92.50 calls on Charles Schwab. The Motley Fool has a disclosure policy.

What Is a Family of Funds?