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Is Vanguard Equity Income Admiral (VEIRX) a Strong Mutual Fund Pick Right Now?
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If you have been looking for Mutual Fund Equity Report funds, a place to start could be Vanguard Equity Income Admiral (VEIRX - Free Report) . VEIRX carries 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 VEIRX. The Vanguard Equity Income Admiral made its debut in August of 2001 and VEIRX has managed to accumulate roughly $47.29 billion in assets, as of the most recently available information. The fund's current manager, Sharon Hill, has been in charge of the fund since February of 2021.
Performance
Investors naturally seek funds with strong performance. This fund carries a 5-year annualized total return of 10.26%, and it sits 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 10.97%, 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. VEIRX's standard deviation over the past three years is 17.33% compared to the category average of 17.53%. Looking at the past 5 years, the fund's standard deviation is 15.54% compared to the category average of 15.7%. This makes the fund less volatile than its peers over the past half-decade.
Risk Factors
Investors should note that the fund has a 5-year beta of 0.83, so it is likely going to be less volatile than the market at large. Alpha is an additional metric to take into consideration, since it represents a portfolio's performance on a risk-adjusted basis relative to a benchmark, which in this case, is the S&P 500. Over the past 5 years, the fund has a negative alpha of -0.43. This means that managers in this portfolio find it difficult to pick securities that generate better-than-benchmark returns.
Holdings
Examining the equity holdings of a mutual fund is also a valuable exercise. This can show us how the manager is applying their stated methodology, as well as if there are any inherent biases in their approach. For this particular fund, the focus is largely on equities that are traded in the United States.
As of the last filing date, the mutual fund has 91.02% of its assets in stocks, with an average market capitalization of $158.78 billion. The fund has the heaviest exposure to the following market sectors:
Finance
Non-Durable
Health
Technology
This fund's turnover is about 34%, so the fund managers are making fewer trades than the average comparable fund.
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, VEIRX is a no load fund. It has an expense ratio of 0.19% compared to the category average of 0.99%. Looking at the fund from a cost perspective, VEIRX is actually cheaper than its peers.
This fund requires a minimum initial investment of $50,000, and each subsequent investment should be at least $1.
Bottom Line
Overall, Vanguard Equity Income Admiral ( VEIRX ) has a high Zacks Mutual Fund rank, and in conjunction with its comparatively strong performance, average downside risk, and lower fees, Vanguard Equity Income Admiral ( VEIRX ) looks like a good potential choice for investors right now.
This could just be the start of your research on VEIRXin the Mutual Fund Equity Report category. Consider going to www.zacks.com/funds/mutual-funds for additional information about this fund, and all the others that we rank 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 Equity Income Admiral (VEIRX) a Strong Mutual Fund Pick Right Now?
If you have been looking for Mutual Fund Equity Report funds, a place to start could be Vanguard Equity Income Admiral (VEIRX - Free Report) . VEIRX carries 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 VEIRX. The Vanguard Equity Income Admiral made its debut in August of 2001 and VEIRX has managed to accumulate roughly $47.29 billion in assets, as of the most recently available information. The fund's current manager, Sharon Hill, has been in charge of the fund since February of 2021.
Performance
Investors naturally seek funds with strong performance. This fund carries a 5-year annualized total return of 10.26%, and it sits 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 10.97%, 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. VEIRX's standard deviation over the past three years is 17.33% compared to the category average of 17.53%. Looking at the past 5 years, the fund's standard deviation is 15.54% compared to the category average of 15.7%. This makes the fund less volatile than its peers over the past half-decade.
Risk Factors
Investors should note that the fund has a 5-year beta of 0.83, so it is likely going to be less volatile than the market at large. Alpha is an additional metric to take into consideration, since it represents a portfolio's performance on a risk-adjusted basis relative to a benchmark, which in this case, is the S&P 500. Over the past 5 years, the fund has a negative alpha of -0.43. This means that managers in this portfolio find it difficult to pick securities that generate better-than-benchmark returns.
Holdings
Examining the equity holdings of a mutual fund is also a valuable exercise. This can show us how the manager is applying their stated methodology, as well as if there are any inherent biases in their approach. For this particular fund, the focus is largely on equities that are traded in the United States.
As of the last filing date, the mutual fund has 91.02% of its assets in stocks, with an average market capitalization of $158.78 billion. The fund has the heaviest exposure to the following market sectors:
- Finance
- Non-Durable
- Health
- Technology
This fund's turnover is about 34%, so the fund managers are making fewer trades than the average comparable fund.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, VEIRX is a no load fund. It has an expense ratio of 0.19% compared to the category average of 0.99%. Looking at the fund from a cost perspective, VEIRX is actually cheaper than its peers.
This fund requires a minimum initial investment of $50,000, and each subsequent investment should be at least $1.
Bottom Line
Overall, Vanguard Equity Income Admiral ( VEIRX ) has a high Zacks Mutual Fund rank, and in conjunction with its comparatively strong performance, average downside risk, and lower fees, Vanguard Equity Income Admiral ( VEIRX ) looks like a good potential choice for investors right now.
This could just be the start of your research on VEIRXin the Mutual Fund Equity Report category. Consider going to www.zacks.com/funds/mutual-funds for additional information about this fund, and all the others that we rank 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.