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Is Vanguard Small-Cap Growth Index Fund (VISGX) a Strong Mutual Fund Pick Right Now?
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There are plenty of choices in the Index category, but where should you start your research? Well, one fund that might be worth investigating is Vanguard Small-Cap Growth Index Fund (VISGX - Free Report) . VISGX has no Zacks Mutual Fund Rank, but we have been able to look into other metrics like performance, volatility, and cost.
History of Fund/Manager
Vanguard Group is responsible for VISGX, and the company is based out of Malvern, PA. Vanguard Small-Cap Growth Index Fund debuted in May of 1998. Since then, VISGX has accumulated assets of about $206.62 million, according to the most recently available information. Gerard O'Reilly is the fund's current manager and has held that role since September of 2011.
Performance
Investors naturally seek funds with strong performance. This fund carries a 5-year annualized total return of 19.5%, and is in the top third among its category peers. But if you are looking for a shorter time frame, it is also worth looking at its 3-year annualized total return of 20.66%, which places it in the top third during this time-frame.
When looking at a fund's performance, it is also important to note the standard deviation of the returns. The lower the standard deviation, the less volatility the fund experiences. The standard deviation of VISGX over the past three years is 24.19% compared to the category average of 15.52%. Over the past 5 years, the standard deviation of the fund is 19.41% compared to the category average of 12.91%. This makes the fund more volatile than its peers over the past half-decade.
Risk Factors
The fund has a 5-year beta of 1.16, so investors should note that it is hypothetically more volatile than the market at large. Another factor to consider is alpha, as it reflects a portfolio's performance on a risk-adjusted basis relative to a benchmark-in this case, the S&P 500. Over the past 5 years, the fund has a negative alpha of -0.07. This means that managers in this portfolio find it difficult to pick securities that generate better-than-benchmark returns.
Expenses
As competition heats up in the mutual fund market, costs become increasingly important. Compared to its otherwise identical counterpart, a low-cost product will be an outperformer, all other things being equal. Thus, taking a closer look at cost-related metrics is vital for investors. In terms of fees, VISGX is a no load fund. It has an expense ratio of 0.19% compared to the category average of 0.80%. Looking at the fund from a cost perspective, VISGX is actually cheaper than its peers.
Investors need to be aware that with this product, the minimum initial investment is $0; each subsequent investment has no minimum amount.
Bottom Line
For additional information on this product, or to compare it to other mutual funds in the Index, make sure to go to www.zacks.com/funds/mutual-funds for additional information. Zacks provides a full suite of tools to help you analyze your portfolio - both funds and stocks - in the most efficient way possible.
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Is Vanguard Small-Cap Growth Index Fund (VISGX) a Strong Mutual Fund Pick Right Now?
There are plenty of choices in the Index category, but where should you start your research? Well, one fund that might be worth investigating is Vanguard Small-Cap Growth Index Fund (VISGX - Free Report) . VISGX has no Zacks Mutual Fund Rank, but we have been able to look into other metrics like performance, volatility, and cost.
History of Fund/Manager
Vanguard Group is responsible for VISGX, and the company is based out of Malvern, PA. Vanguard Small-Cap Growth Index Fund debuted in May of 1998. Since then, VISGX has accumulated assets of about $206.62 million, according to the most recently available information. Gerard O'Reilly is the fund's current manager and has held that role since September of 2011.
Performance
Investors naturally seek funds with strong performance. This fund carries a 5-year annualized total return of 19.5%, and is in the top third among its category peers. But if you are looking for a shorter time frame, it is also worth looking at its 3-year annualized total return of 20.66%, which places it in the top third during this time-frame.
When looking at a fund's performance, it is also important to note the standard deviation of the returns. The lower the standard deviation, the less volatility the fund experiences. The standard deviation of VISGX over the past three years is 24.19% compared to the category average of 15.52%. Over the past 5 years, the standard deviation of the fund is 19.41% compared to the category average of 12.91%. This makes the fund more volatile than its peers over the past half-decade.
Risk Factors
The fund has a 5-year beta of 1.16, so investors should note that it is hypothetically more volatile than the market at large. Another factor to consider is alpha, as it reflects a portfolio's performance on a risk-adjusted basis relative to a benchmark-in this case, the S&P 500. Over the past 5 years, the fund has a negative alpha of -0.07. This means that managers in this portfolio find it difficult to pick securities that generate better-than-benchmark returns.
Expenses
As competition heats up in the mutual fund market, costs become increasingly important. Compared to its otherwise identical counterpart, a low-cost product will be an outperformer, all other things being equal. Thus, taking a closer look at cost-related metrics is vital for investors. In terms of fees, VISGX is a no load fund. It has an expense ratio of 0.19% compared to the category average of 0.80%. Looking at the fund from a cost perspective, VISGX is actually cheaper than its peers.
Investors need to be aware that with this product, the minimum initial investment is $0; each subsequent investment has no minimum amount.
Bottom Line
For additional information on this product, or to compare it to other mutual funds in the Index, make sure to go to www.zacks.com/funds/mutual-funds for additional information. Zacks provides a full suite of tools to help you analyze your portfolio - both funds and stocks - in the most efficient way possible.