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Is Vanguard Energy Investor (VGENX) a Strong Mutual Fund Pick Right Now?
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There are plenty of choices in the Sector - Energy category, but where should you start your research? Well, one fund that you should consider investigating is Vanguard Energy Investor (VGENX - Free Report) . VGENX has a Zacks Mutual Fund Rank of 3 (Hold), which is based on nine forecasting factors like size, cost, and past performance.
Objective
We classify VGENX in the Sector - Energy category, an area that is rife with possible choices. Throughout the massive global energy sector, Sector - Energy mutual funds hold a wide range of quickly changing and vitally important industries. While oil and gas comprise the bulk of the exposure, carbon-based fuels will be the biggest group of assets in these funds, though clean energy is starting to pick up steam.
History of Fund/Manager
VGENX is a part of the Vanguard Group family of funds, a company based out of Malvern, PA. Vanguard Energy Investor made its debut in May of 1984, and since then, VGENX has accumulated about $1.61 billion in assets, per the most up-to-date date available. The fund's current manager, G. Thomas Levering, has been in charge of the fund since January of 2020.
Performance
Investors naturally seek funds with strong performance. This fund has delivered a 5-year annualized total return of -2.95%, and is in the top third among its category peers. Investors who prefer analyzing shorter time frames should look at its 3-year annualized total return of -10.56%, 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 VGENX over the past three years is 27.48% compared to the category average of 29.53%. The fund's standard deviation over the past 5 years is 22.9% compared to the category average of 24.34%. This makes the fund less volatile than its peers over the past half-decade.
Risk Factors
The fund has a 5-year beta of 1.25, 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. VGENX's 5-year performance has produced a negative alpha of -19.85, which means managers in this portfolio find it difficult to pick securities that generate better-than-benchmark returns.
Expenses
For investors, taking a closer look at cost-related metrics is key, since costs are increasingly important for mutual fund investing. Competition is heating up in this space, and a lower cost product will likely outperform its otherwise identical counterpart, all things being equal. In terms of fees, VGENX is a no load fund. It has an expense ratio of 0.37% compared to the category average of 1.54%. So, VGENX is actually cheaper than its peers from a cost perspective.
Investors should also note that the minimum initial investment for the product is $3,000 and that each subsequent investment needs to be at $1.
Bottom Line
Overall, Vanguard Energy Investor ( VGENX ) has a neutral Zacks Mutual Fund rank, and in conjunction with its comparatively strong performance, average downside risk, and lower fees, this fund looks like a somewhat average choice for investors right now.
For additional information on the Sector - Energy area of the mutual fund world, make sure to check out www.zacks.com/funds/mutual-funds. There, you can see more about the ranking process, and dive even deeper into VGENX too for additional information. Want to learn even more? We have a full suite of tools on stocks that you can use to find the best choices for your portfolio too, no matter what kind of investor you are.
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Is Vanguard Energy Investor (VGENX) a Strong Mutual Fund Pick Right Now?
There are plenty of choices in the Sector - Energy category, but where should you start your research? Well, one fund that you should consider investigating is Vanguard Energy Investor (VGENX - Free Report) . VGENX has a Zacks Mutual Fund Rank of 3 (Hold), which is based on nine forecasting factors like size, cost, and past performance.
Objective
We classify VGENX in the Sector - Energy category, an area that is rife with possible choices. Throughout the massive global energy sector, Sector - Energy mutual funds hold a wide range of quickly changing and vitally important industries. While oil and gas comprise the bulk of the exposure, carbon-based fuels will be the biggest group of assets in these funds, though clean energy is starting to pick up steam.
History of Fund/Manager
VGENX is a part of the Vanguard Group family of funds, a company based out of Malvern, PA. Vanguard Energy Investor made its debut in May of 1984, and since then, VGENX has accumulated about $1.61 billion in assets, per the most up-to-date date available. The fund's current manager, G. Thomas Levering, has been in charge of the fund since January of 2020.
Performance
Investors naturally seek funds with strong performance. This fund has delivered a 5-year annualized total return of -2.95%, and is in the top third among its category peers. Investors who prefer analyzing shorter time frames should look at its 3-year annualized total return of -10.56%, 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 VGENX over the past three years is 27.48% compared to the category average of 29.53%. The fund's standard deviation over the past 5 years is 22.9% compared to the category average of 24.34%. This makes the fund less volatile than its peers over the past half-decade.
Risk Factors
The fund has a 5-year beta of 1.25, 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. VGENX's 5-year performance has produced a negative alpha of -19.85, which means managers in this portfolio find it difficult to pick securities that generate better-than-benchmark returns.
Expenses
For investors, taking a closer look at cost-related metrics is key, since costs are increasingly important for mutual fund investing. Competition is heating up in this space, and a lower cost product will likely outperform its otherwise identical counterpart, all things being equal. In terms of fees, VGENX is a no load fund. It has an expense ratio of 0.37% compared to the category average of 1.54%. So, VGENX is actually cheaper than its peers from a cost perspective.
Investors should also note that the minimum initial investment for the product is $3,000 and that each subsequent investment needs to be at $1.
Bottom Line
Overall, Vanguard Energy Investor ( VGENX ) has a neutral Zacks Mutual Fund rank, and in conjunction with its comparatively strong performance, average downside risk, and lower fees, this fund looks like a somewhat average choice for investors right now.
For additional information on the Sector - Energy area of the mutual fund world, make sure to check out www.zacks.com/funds/mutual-funds. There, you can see more about the ranking process, and dive even deeper into VGENX too for additional information. Want to learn even more? We have a full suite of tools on stocks that you can use to find the best choices for your portfolio too, no matter what kind of investor you are.