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Is Vanguard Target Retirement 2030 Fund (VTHRX) a Strong Mutual Fund Pick Right Now?
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Have you been searching for a Mutual Fund Equity Report fund? You might want to begin with Vanguard Target Retirement 2030 Fund (VTHRX - Free Report) . The fund does not have a Zacks Mutual Fund Rank, though we have been able to explore other metrics like performance, volatility, and cost.
History of Fund/Manager
Vanguard Group is based in Malvern, PA, and is the manager of VTHRX. Vanguard Target Retirement 2030 Fund debuted in June of 2006. Since then, VTHRX has accumulated assets of about $78.95 billion, according to the most recently available information. William Coleman is the fund's current manager and has held that role since February of 2013.
Performance
Investors naturally seek funds with strong performance. This fund has delivered a 5-year annualized total return of 4.87%, and it sits in the middle third among its category peers. If you're interested in shorter time frames, do not dismiss looking at the fund's 3-year annualized total return of 4.01%, which places it in the middle 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. VTHRX's standard deviation over the past three years is 14.67% compared to the category average of 14.42%. The standard deviation of the fund over the past 5 years is 12.76% compared to the category average of 12.58%. 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. VTHRX has a 5-year beta of 0.67, which means it 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. VTHRX's 5-year performance has produced a negative alpha of -2.93, which means 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, VTHRX is a no load fund. It has an expense ratio of 0.09% compared to the category average of 0.49%. From a cost perspective, VTHRX is actually cheaper than its peers.
Investors need to be aware that with this product, the minimum initial investment is $1,000; each subsequent investment needs to be at least $1.
Bottom Line
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 VTHRX 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 Target Retirement 2030 Fund (VTHRX) a Strong Mutual Fund Pick Right Now?
Have you been searching for a Mutual Fund Equity Report fund? You might want to begin with Vanguard Target Retirement 2030 Fund (VTHRX - Free Report) . The fund does not have a Zacks Mutual Fund Rank, though we have been able to explore other metrics like performance, volatility, and cost.
History of Fund/Manager
Vanguard Group is based in Malvern, PA, and is the manager of VTHRX. Vanguard Target Retirement 2030 Fund debuted in June of 2006. Since then, VTHRX has accumulated assets of about $78.95 billion, according to the most recently available information. William Coleman is the fund's current manager and has held that role since February of 2013.
Performance
Investors naturally seek funds with strong performance. This fund has delivered a 5-year annualized total return of 4.87%, and it sits in the middle third among its category peers. If you're interested in shorter time frames, do not dismiss looking at the fund's 3-year annualized total return of 4.01%, which places it in the middle 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. VTHRX's standard deviation over the past three years is 14.67% compared to the category average of 14.42%. The standard deviation of the fund over the past 5 years is 12.76% compared to the category average of 12.58%. 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. VTHRX has a 5-year beta of 0.67, which means it 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. VTHRX's 5-year performance has produced a negative alpha of -2.93, which means 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, VTHRX is a no load fund. It has an expense ratio of 0.09% compared to the category average of 0.49%. From a cost perspective, VTHRX is actually cheaper than its peers.
Investors need to be aware that with this product, the minimum initial investment is $1,000; each subsequent investment needs to be at least $1.
Bottom Line
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 VTHRX 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.