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Is Vanguard Wellington Investor (VWELX) a Strong Mutual Fund Pick Right Now?
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If you've been stuck searching for Mutual Fund Equity Report funds, consider Vanguard Wellington Investor (VWELX - Free Report) as a possibility. VWELX bears a Zacks Mutual Fund Rank of 1 (Strong Buy), which is based on nine forecasting factors like size, cost, and past performance.
History of Fund/Manager
Vanguard Group is based in Malvern, PA, and is the manager of VWELX. Since Vanguard Wellington Investor made its debut in July of 1929, VWELX has garnered more than $15.86 billion in assets. The fund's current manager, Loren L. Moran, has been in charge of the fund since January of 2017.
Performance
Of course, investors look for strong performance in funds. This fund carries a 5-year annualized total return of 12.28%, and it sits 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 17.22%, 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 13.18%, the standard deviation of VWELX over the past three years is 11.38%. Looking at the past 5 years, the fund's standard deviation is 9.99% compared to the category average of 11.54%. This makes the fund less volatile than its peers over the past half-decade.
Risk Factors
With a 5-year beta of 0.63, the fund is likely to be less volatile than the market average. Because alpha represents a portfolio's performance on a risk-adjusted basis relative to a benchmark, which is the S&P 500 in this case, one should pay attention to this metric as well. VWELX's 5-year performance has produced a positive alpha of 0.2, which means managers in this portfolio are skilled in picking 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, VWELX is a no load fund. It has an expense ratio of 0.24% compared to the category average of 0.86%. From a cost perspective, VWELX is actually cheaper than its peers.
While the minimum initial investment for the product is $3,000, investors should also note that each subsequent investment needs to be at least $1.
Bottom Line
Overall, Vanguard Wellington Investor ( VWELX ) has a high Zacks Mutual Fund rank, and in conjunction with its comparatively strong performance, average downside risk, and lower fees, Vanguard Wellington Investor ( VWELX ) looks like a good potential choice for investors right now.
Want even more information about VWELX? Then go over to Zacks.com and check out our mutual fund comparison tool, and all of the other great features that we have to help you with your mutual fund analysis for additional information. And don't forget, Zacks has all of your needs covered on the equity side too! Make sure to check out Zacks.com for more information on our screening capabilities, Rank, and all our articles as well.
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Is Vanguard Wellington Investor (VWELX) a Strong Mutual Fund Pick Right Now?
If you've been stuck searching for Mutual Fund Equity Report funds, consider Vanguard Wellington Investor (VWELX - Free Report) as a possibility. VWELX bears a Zacks Mutual Fund Rank of 1 (Strong Buy), which is based on nine forecasting factors like size, cost, and past performance.
History of Fund/Manager
Vanguard Group is based in Malvern, PA, and is the manager of VWELX. Since Vanguard Wellington Investor made its debut in July of 1929, VWELX has garnered more than $15.86 billion in assets. The fund's current manager, Loren L. Moran, has been in charge of the fund since January of 2017.
Performance
Of course, investors look for strong performance in funds. This fund carries a 5-year annualized total return of 12.28%, and it sits 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 17.22%, 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 13.18%, the standard deviation of VWELX over the past three years is 11.38%. Looking at the past 5 years, the fund's standard deviation is 9.99% compared to the category average of 11.54%. This makes the fund less volatile than its peers over the past half-decade.
Risk Factors
With a 5-year beta of 0.63, the fund is likely to be less volatile than the market average. Because alpha represents a portfolio's performance on a risk-adjusted basis relative to a benchmark, which is the S&P 500 in this case, one should pay attention to this metric as well. VWELX's 5-year performance has produced a positive alpha of 0.2, which means managers in this portfolio are skilled in picking 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, VWELX is a no load fund. It has an expense ratio of 0.24% compared to the category average of 0.86%. From a cost perspective, VWELX is actually cheaper than its peers.
While the minimum initial investment for the product is $3,000, investors should also note that each subsequent investment needs to be at least $1.
Bottom Line
Overall, Vanguard Wellington Investor ( VWELX ) has a high Zacks Mutual Fund rank, and in conjunction with its comparatively strong performance, average downside risk, and lower fees, Vanguard Wellington Investor ( VWELX ) looks like a good potential choice for investors right now.
Want even more information about VWELX? Then go over to Zacks.com and check out our mutual fund comparison tool, and all of the other great features that we have to help you with your mutual fund analysis for additional information. And don't forget, Zacks has all of your needs covered on the equity side too! Make sure to check out Zacks.com for more information on our screening capabilities, Rank, and all our articles as well.