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Is Vanguard Institutional Index Fund (VINIX) a Strong Mutual Fund Pick Right Now?
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Investors in search of a Mutual Fund Equity Report fund might want to consider looking at Vanguard Institutional Index Fund (VINIX - 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 VINIX. Vanguard Institutional Index Fund debuted in July of 1990. Since then, VINIX has accumulated assets of about $109.56 billion, according to the most recently available information. The fund is currently managed by Donald M. Butler who has been in charge of the fund since December of 2000.
Performance
Obviously, what investors are looking for in these funds is strong performance relative to their peers. VINIX has a 5-year annualized total return of 12.17% and is 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 13.68%, which places it in the top third during this time-frame.
It is important to note that the product's returns may not reflect all its expenses. Any fees not reflected would lower the returns. Total returns do not reflect the fund's [%] sale charge. If sales charges were included, total returns would have been lower.
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, VINIX's standard deviation comes in at 18.03%, compared to the category average of 16.28%. The standard deviation of the fund over the past 5 years is 18.79% compared to the category average of 17.11%. 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, so it is likely going to be as volatile as 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. With a positive alpha of 0.01, 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 mostly on equities that are traded in the United States.
As of the last filing date, the mutual fund has 88.21% of its assets in stocks and it has 2.55% of assets in foreign securities. The fund has the heaviest exposure to the following market sectors:
Technology
Finance
With turnover at about 3%, this fund is making fewer trades than its comparable peers.
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, VINIX is a no load fund. It has an expense ratio of 0.04% compared to the category average of 0.80%. VINIX is actually cheaper than its peers when you consider factors like cost.
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.
Fees charged by investment advisors have not been taken into considiration. Returns would be less if those were included.
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 VINIX to its peers 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 Institutional Index Fund (VINIX) a Strong Mutual Fund Pick Right Now?
Investors in search of a Mutual Fund Equity Report fund might want to consider looking at Vanguard Institutional Index Fund (VINIX - 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 VINIX. Vanguard Institutional Index Fund debuted in July of 1990. Since then, VINIX has accumulated assets of about $109.56 billion, according to the most recently available information. The fund is currently managed by Donald M. Butler who has been in charge of the fund since December of 2000.
Performance
Obviously, what investors are looking for in these funds is strong performance relative to their peers. VINIX has a 5-year annualized total return of 12.17% and is 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 13.68%, which places it in the top third during this time-frame.
It is important to note that the product's returns may not reflect all its expenses. Any fees not reflected would lower the returns. Total returns do not reflect the fund's [%] sale charge. If sales charges were included, total returns would have been lower.
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, VINIX's standard deviation comes in at 18.03%, compared to the category average of 16.28%. The standard deviation of the fund over the past 5 years is 18.79% compared to the category average of 17.11%. 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, so it is likely going to be as volatile as 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. With a positive alpha of 0.01, 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 mostly on equities that are traded in the United States.
As of the last filing date, the mutual fund has 88.21% of its assets in stocks and it has 2.55% of assets in foreign securities. The fund has the heaviest exposure to the following market sectors:
- Technology
- Finance
With turnover at about 3%, this fund is making fewer trades than its comparable peers.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, VINIX is a no load fund. It has an expense ratio of 0.04% compared to the category average of 0.80%. VINIX is actually cheaper than its peers when you consider factors like cost.
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.
Fees charged by investment advisors have not been taken into considiration. Returns would be less if those were included.
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 VINIX to its peers 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.