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Is Vanguard Real Estate Index Investor (VGSIX) 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 Real Estate Index Investor (VGSIX - 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
VGSIX finds itself in the Vanguard Group family, based out of Malvern, PA. Vanguard Real Estate Index Investor debuted in May of 1996. Since then, VGSIX has accumulated assets of about $82.63 million, according to the most recently available information. Gerard O'Reilly is the fund's current manager and has held that role since November of 2001.
Performance
Of course, investors look for strong performance in funds. VGSIX has a 5-year annualized total return of 2.29% and is in the middle 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 2.18%, which places it in the bottom 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, VGSIX's standard deviation comes in at 20.84%, compared to the category average of 16.12%. The standard deviation of the fund over the past 5 years is 20.5% compared to the category average of 16.84%. 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. VGSIX has a 5-year beta of 0.93, 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. VGSIX's 5-year performance has produced a negative alpha of -6.02, 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, VGSIX is a no load fund. It has an expense ratio of 0.26% compared to the category average of 0.80%. From a cost perspective, VGSIX is actually cheaper than its peers.
Investors need to be aware that with this product, the minimum initial investment is $0; each subsequent investment has no minimum amount.
Fees charged by investment advisors have not been taken into considiration. Returns would be less if those were included.
Bottom Line
Your research on the Mutual Fund Equity Report segment doesn't have to stop here. You can check out all the great mutual fund tools we have to offer by going to www.zacks.com/funds/mutual-funds to see the additional features we offer as well 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 Real Estate Index Investor (VGSIX) a Strong Mutual Fund Pick Right Now?
Investors in search of a Mutual Fund Equity Report fund might want to consider looking at Vanguard Real Estate Index Investor (VGSIX - 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
VGSIX finds itself in the Vanguard Group family, based out of Malvern, PA. Vanguard Real Estate Index Investor debuted in May of 1996. Since then, VGSIX has accumulated assets of about $82.63 million, according to the most recently available information. Gerard O'Reilly is the fund's current manager and has held that role since November of 2001.
Performance
Of course, investors look for strong performance in funds. VGSIX has a 5-year annualized total return of 2.29% and is in the middle 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 2.18%, which places it in the bottom 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, VGSIX's standard deviation comes in at 20.84%, compared to the category average of 16.12%. The standard deviation of the fund over the past 5 years is 20.5% compared to the category average of 16.84%. 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. VGSIX has a 5-year beta of 0.93, 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. VGSIX's 5-year performance has produced a negative alpha of -6.02, 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, VGSIX is a no load fund. It has an expense ratio of 0.26% compared to the category average of 0.80%. From a cost perspective, VGSIX is actually cheaper than its peers.
Investors need to be aware that with this product, the minimum initial investment is $0; each subsequent investment has no minimum amount.
Fees charged by investment advisors have not been taken into considiration. Returns would be less if those were included.
Bottom Line
Your research on the Mutual Fund Equity Report segment doesn't have to stop here. You can check out all the great mutual fund tools we have to offer by going to www.zacks.com/funds/mutual-funds to see the additional features we offer as well 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.