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Is Vanguard Small-Cap Value Index Investor (VISVX) a Strong Mutual Fund Pick Right Now?
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Investors in search of a Small Cap Value fund might want to consider looking at Vanguard Small-Cap Value Index Investor (VISVX - Free Report) . VISVX has no Zacks Mutual Fund Rank, but we have been able to look into other metrics like performance, volatility, and cost.
Objective
The world of Small Cap Value mutual funds is an area filled with options, such as VISVX. Small Cap Value funds invest in small companies with stock market valuation less than $2 billion. These funds offer more bang for an owner's buck, providing low P/E ratios, high dividend yields, and better-than-average P/S ratios.
History of Fund/Manager
Vanguard Group is responsible for VISVX, and the company is based out of Malvern, PA. Vanguard Small-Cap Value Index Investor made its debut in April of 1998, and since then, VISVX has accumulated about $251.18 million in assets, per the most up-to-date date available. The fund is currently managed by William Coleman who has been in charge of the fund since April of 2016.
Performance
Of course, investors look for strong performance in funds. VISVX has a 5-year annualized total return of 11.56% 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 9.07%, 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. Compared to the category average of 19.35%, the standard deviation of VISVX over the past three years is 26.24%. Looking at the past 5 years, the fund's standard deviation is 21.2% compared to the category average of 15.92%. This makes the fund more volatile than its peers over the past half-decade.
Risk Factors
Investors should not forget about beta, an important way to measure a mutual fund's risk compared to the market as a whole. VISVX has a 5-year beta of 1.26, which means it is likely to be more volatile than the market average. 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 -8.5. 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, VISVX is a no load fund. It has an expense ratio of 0.19% compared to the category average of 1.25%. VISVX is actually cheaper than its peers when you consider factors like cost.
This fund requires a minimum initial investment of $0, while there is no minimum for each subsequent investment.
Bottom Line
Your research on the Small Cap Value segment doesn't have to stop here. You can check out all the great mutual fund tools we have to offer by going to www.zacks.com/funds/mutual-funds to see the additional features we offer as well 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 Small-Cap Value Index Investor (VISVX) a Strong Mutual Fund Pick Right Now?
Investors in search of a Small Cap Value fund might want to consider looking at Vanguard Small-Cap Value Index Investor (VISVX - Free Report) . VISVX has no Zacks Mutual Fund Rank, but we have been able to look into other metrics like performance, volatility, and cost.
Objective
The world of Small Cap Value mutual funds is an area filled with options, such as VISVX. Small Cap Value funds invest in small companies with stock market valuation less than $2 billion. These funds offer more bang for an owner's buck, providing low P/E ratios, high dividend yields, and better-than-average P/S ratios.
History of Fund/Manager
Vanguard Group is responsible for VISVX, and the company is based out of Malvern, PA. Vanguard Small-Cap Value Index Investor made its debut in April of 1998, and since then, VISVX has accumulated about $251.18 million in assets, per the most up-to-date date available. The fund is currently managed by William Coleman who has been in charge of the fund since April of 2016.
Performance
Of course, investors look for strong performance in funds. VISVX has a 5-year annualized total return of 11.56% 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 9.07%, 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. Compared to the category average of 19.35%, the standard deviation of VISVX over the past three years is 26.24%. Looking at the past 5 years, the fund's standard deviation is 21.2% compared to the category average of 15.92%. This makes the fund more volatile than its peers over the past half-decade.
Risk Factors
Investors should not forget about beta, an important way to measure a mutual fund's risk compared to the market as a whole. VISVX has a 5-year beta of 1.26, which means it is likely to be more volatile than the market average. 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 -8.5. 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, VISVX is a no load fund. It has an expense ratio of 0.19% compared to the category average of 1.25%. VISVX is actually cheaper than its peers when you consider factors like cost.
This fund requires a minimum initial investment of $0, while there is no minimum for each subsequent investment.
Bottom Line
Your research on the Small Cap Value segment doesn't have to stop here. You can check out all the great mutual fund tools we have to offer by going to www.zacks.com/funds/mutual-funds to see the additional features we offer as well 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.