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Is Vanguard Growth Index Institutional (VIGIX) a Strong Mutual Fund Pick Right Now?
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Looking for a Mutual Fund Equity Report fund? You may want to consider Vanguard Growth Index Institutional (VIGIX - Free Report) as a possible option. VIGIX has no Zacks Mutual Fund Rank, but we have been able to look into other metrics like performance, volatility, and cost.
History of Fund/Manager
Vanguard Group is based in Malvern, PA, and is the manager of VIGIX. Since Vanguard Growth Index Institutional made its debut in May of 1998, VIGIX has garnered more than $21.92 billion in assets. The fund's current manager, Gerard C. O'Reilly, has been in charge of the fund since May of 1998.
Performance
Of course, investors look for strong performance in funds. VIGIX has a 5-year annualized total return of 13.07% and it sits in the top 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 12.48%, 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. Over the past three years, VIGIX's standard deviation comes in at 22.79%, compared to the category average of 19.43%. Looking at the past 5 years, the fund's standard deviation is 21.77% compared to the category average of 17.12%. This makes the fund more volatile than its peers over the past half-decade.
Risk Factors
Investors should note that the fund has a 5-year beta of 1.11, so it is likely going to be more volatile than the market at large. 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. The fund has produced a positive alpha over the past 5 years of 0.87, which shows that managers in this portfolio are skilled in picking securities that generate better-than-benchmark returns.
Holdings
Exploring 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 principally on equities that are traded in the United States.
Currently, this mutual fund is holding 90.19% stock in stocks, with an average market capitalization of $330.57 billion. The fund has the heaviest exposure to the following market sectors:
Technology
Retail Trade
With turnover at about 5%, this fund is making fewer trades than comparable funds.
Expenses
For investors, taking a closer look at cost-related metrics is key, since costs are increasingly important for mutual fund investing. Competition is heating up in this space, and a lower cost product will likely outperform its otherwise identical counterpart, all things being equal. In terms of fees, VIGIX is a no load fund. It has an expense ratio of 0.04% compared to the category average of 0.99%. From a cost perspective, VIGIX is actually cheaper than its peers.
While the minimum initial investment for the product is $5 million, investors should also note that each subsequent investment needs to be at least $1.
Bottom Line
Don't stop here for your research on Mutual Fund Equity Report funds. We also have plenty more on our site in order to help you find the best possible fund for your portfolio. Make sure to check out www.zacks.com/funds/mutual-funds for more information about the world of funds, and feel free to compare VIGIX to its peers as well for additional information. Zacks provides a full suite of tools to help you analyze your portfolio - both funds and stocks - in the most efficient way possible.
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Is Vanguard Growth Index Institutional (VIGIX) a Strong Mutual Fund Pick Right Now?
Looking for a Mutual Fund Equity Report fund? You may want to consider Vanguard Growth Index Institutional (VIGIX - Free Report) as a possible option. VIGIX has no Zacks Mutual Fund Rank, but we have been able to look into other metrics like performance, volatility, and cost.
History of Fund/Manager
Vanguard Group is based in Malvern, PA, and is the manager of VIGIX. Since Vanguard Growth Index Institutional made its debut in May of 1998, VIGIX has garnered more than $21.92 billion in assets. The fund's current manager, Gerard C. O'Reilly, has been in charge of the fund since May of 1998.
Performance
Of course, investors look for strong performance in funds. VIGIX has a 5-year annualized total return of 13.07% and it sits in the top 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 12.48%, 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. Over the past three years, VIGIX's standard deviation comes in at 22.79%, compared to the category average of 19.43%. Looking at the past 5 years, the fund's standard deviation is 21.77% compared to the category average of 17.12%. This makes the fund more volatile than its peers over the past half-decade.
Risk Factors
Investors should note that the fund has a 5-year beta of 1.11, so it is likely going to be more volatile than the market at large. 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. The fund has produced a positive alpha over the past 5 years of 0.87, which shows that managers in this portfolio are skilled in picking securities that generate better-than-benchmark returns.
Holdings
Exploring 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 principally on equities that are traded in the United States.
Currently, this mutual fund is holding 90.19% stock in stocks, with an average market capitalization of $330.57 billion. The fund has the heaviest exposure to the following market sectors:
- Technology
- Retail Trade
With turnover at about 5%, this fund is making fewer trades than comparable funds.Expenses
For investors, taking a closer look at cost-related metrics is key, since costs are increasingly important for mutual fund investing. Competition is heating up in this space, and a lower cost product will likely outperform its otherwise identical counterpart, all things being equal. In terms of fees, VIGIX is a no load fund. It has an expense ratio of 0.04% compared to the category average of 0.99%. From a cost perspective, VIGIX is actually cheaper than its peers.
While the minimum initial investment for the product is $5 million, investors should also note that each subsequent investment needs to be at least $1.
Bottom Line
Don't stop here for your research on Mutual Fund Equity Report funds. We also have plenty more on our site in order to help you find the best possible fund for your portfolio. Make sure to check out www.zacks.com/funds/mutual-funds for more information about the world of funds, and feel free to compare VIGIX to its peers as well for additional information. Zacks provides a full suite of tools to help you analyze your portfolio - both funds and stocks - in the most efficient way possible.