If you have been looking for Mutual Fund Equity Report funds, it would not be wise to start your search with Vanguard Managed Payout Investor . VPGDX holds a Zacks Mutual Fund Rank of 4 (Sell), which is based on nine forecasting factors like size, cost, and past performance.
History of Fund/Manager
Vanguard Group is responsible for VPGDX, and the company is based out of Malvern, PA. Since Vanguard Managed Payout Investor made its debut in April of 2008, VPGDX has garnered more than $1.34 billion in assets. The fund is currently managed by Fei Xu who has been in charge of the fund since February of 2020.
Performance
Of course, investors look for strong performance in funds. This fund in particular has delivered a 5-year annualized total return of 7.15%, and is in the bottom third among its category peers. Investors who prefer analyzing shorter time frames should look at its 3-year annualized total return of 8.43%, which places it in the bottom 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 12.24%, the standard deviation of VPGDX over the past three years is 11.14%. The standard deviation of the fund over the past 5 years is 9.54% compared to the category average of 10.8%. This makes the fund less 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. VPGDX has a 5-year beta of 0.56, which means it is likely to be less 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. With a negative alpha of -2.1, managers in this portfolio find it difficult to pick securities that generate better-than-benchmark returns.
Expenses
Costs are increasingly important for mutual fund investing, and particularly as competition heats up in this market. And all things being equal, a lower cost product will outperform its otherwise identical counterpart, so taking a closer look at these metrics is key for investors. In terms of fees, VPGDX is a no load fund. It has an expense ratio of 0.31% compared to the category average of 0.86%. VPGDX is actually cheaper than its peers when you consider factors like cost.
While the minimum initial investment for the product is $25,000, investors should also note that each subsequent investment needs to be at least $1.
Bottom Line
Overall, Vanguard Managed Payout Investor ( VPGDX ) has a low Zacks Mutual Fund rank, and in conjunction with its comparatively weak performance, average downside risk, and lower fees, Vanguard Managed Payout Investor ( VPGDX ) looks like a somewhat weak choice for investors right now.
For additional information on the Mutual Fund Equity Report 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 VPGDX too 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 Managed Payout Investor (VPGDX) a Strong Mutual Fund Pick Right Now?
If you have been looking for Mutual Fund Equity Report funds, it would not be wise to start your search with Vanguard Managed Payout Investor . VPGDX holds a Zacks Mutual Fund Rank of 4 (Sell), which is based on nine forecasting factors like size, cost, and past performance.
History of Fund/Manager
Vanguard Group is responsible for VPGDX, and the company is based out of Malvern, PA. Since Vanguard Managed Payout Investor made its debut in April of 2008, VPGDX has garnered more than $1.34 billion in assets. The fund is currently managed by Fei Xu who has been in charge of the fund since February of 2020.
Performance
Of course, investors look for strong performance in funds. This fund in particular has delivered a 5-year annualized total return of 7.15%, and is in the bottom third among its category peers. Investors who prefer analyzing shorter time frames should look at its 3-year annualized total return of 8.43%, which places it in the bottom 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 12.24%, the standard deviation of VPGDX over the past three years is 11.14%. The standard deviation of the fund over the past 5 years is 9.54% compared to the category average of 10.8%. This makes the fund less 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. VPGDX has a 5-year beta of 0.56, which means it is likely to be less 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. With a negative alpha of -2.1, managers in this portfolio find it difficult to pick securities that generate better-than-benchmark returns.
Expenses
Costs are increasingly important for mutual fund investing, and particularly as competition heats up in this market. And all things being equal, a lower cost product will outperform its otherwise identical counterpart, so taking a closer look at these metrics is key for investors. In terms of fees, VPGDX is a no load fund. It has an expense ratio of 0.31% compared to the category average of 0.86%. VPGDX is actually cheaper than its peers when you consider factors like cost.
While the minimum initial investment for the product is $25,000, investors should also note that each subsequent investment needs to be at least $1.
Bottom Line
Overall, Vanguard Managed Payout Investor ( VPGDX ) has a low Zacks Mutual Fund rank, and in conjunction with its comparatively weak performance, average downside risk, and lower fees, Vanguard Managed Payout Investor ( VPGDX ) looks like a somewhat weak choice for investors right now.
For additional information on the Mutual Fund Equity Report 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 VPGDX too 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.