We use cookies to understand how you use our site and to improve your experience. This includes personalizing content and advertising. To learn more, click here. By continuing to use our site, you accept our use of cookies, revised Privacy Policy and Terms of Service.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
Is Vanguard Consumer Staples Index Administrative (VCSAX) a Strong Mutual Fund Pick Right Now?
Read MoreHide Full Article
On the lookout for a Large Cap Blend fund? Starting with Vanguard Consumer Staples Index Administrative (VCSAX - Free Report) is one possibility. VCSAX possesses a Zacks Mutual Fund Rank of 1 (Strong Buy), which is based on nine forecasting factors like size, cost, and past performance.
Objective
VCSAX is part of the Large Cap Blend section, an area that boasts an array of many possible options. Large Cap Blend mutual funds most often invest in firms with a market capitalization of $10 billion or more. By investing in bigger companies, these funds offer more stability, and are often well-suited for investors with a "buy and hold" mindset. Blended funds mix large, established companies into their holdings, which gives investors exposure to both value and growth at the same time.
History of Fund/Manager
VCSAX finds itself in the Vanguard Group family, based out of Malvern, PA. The Vanguard Consumer Staples Index Administrative made its debut in January of 2004 and VCSAX has managed to accumulate roughly $699.16 million in assets, as of the most recently available information. Michael A. Johnson is the fund's current manager and has held that role since December of 2010.
Performance
Investors naturally seek funds with strong performance. This fund has delivered a 5-year annualized total return of 12.4%, and is in the bottom third among its category peers. Investors who prefer analyzing shorter time frames should look at its 3-year annualized total return of 9.06%, which places it in the bottom 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, VCSAX's standard deviation comes in at 9.35%, compared to the category average of 10.58%. Over the past 5 years, the standard deviation of the fund is 9.85% compared to the category average of 10.09%. This makes the fund less volatile than its peers over the past half-decade.
Risk Factors
Investors cannot discount the risks to this segment though, as it is always important to remember the downside for any potential investment. VCSAX lost 27.95% in the most recent bear market and outperformed its peer group by 21.81%. This could mean that the fund is a better choice than comparable funds during a bear market.
Investors should note that the fund has a 5-year beta of 0.7, so it is likely going to be less volatile than the market at large. 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. VCSAX has generated a positive alpha over the past five years of 1.44, demonstrating that managers in this portfolio are skilled in picking securities that generate better-than-benchmark returns.
Expenses
As competition heats up in the mutual fund market, costs become increasingly important. Compared to its otherwise identical counterpart, a low-cost product will be an outperformer, all other things being equal. Thus, taking a closer look at cost-related metrics is vital for investors. In terms of fees, VCSAX is a no load fund. It has an expense ratio of 0.10% compared to the category average of 0.91%. VCSAX is actually cheaper than its peers when you consider factors like cost.
Investors should also note that the minimum initial investment for the product is $100,000 and that each subsequent investment needs to be at $1.
Bottom Line
Overall, Vanguard Consumer Staples Index Administrative has a high Zacks Mutual Fund rank, and in conjunction with its comparatively weak performance, average downside risk, and lower fees, this fund looks like a great potential choice for investors right now.
For additional information on this product, or to compare it to other mutual funds in the Large Cap Blend, make sure to go to www.zacks.com/funds/mutual-funds for additional information. If you are more of a stock investor, make sure to also check out our Zacks Rank, and our full suite of tools we have available for novice and professional investors alike.
See More Zacks Research for These Tickers
Normally $25 each - click below to receive one report FREE:
Image: Bigstock
Is Vanguard Consumer Staples Index Administrative (VCSAX) a Strong Mutual Fund Pick Right Now?
On the lookout for a Large Cap Blend fund? Starting with Vanguard Consumer Staples Index Administrative (VCSAX - Free Report) is one possibility. VCSAX possesses a Zacks Mutual Fund Rank of 1 (Strong Buy), which is based on nine forecasting factors like size, cost, and past performance.
Objective
VCSAX is part of the Large Cap Blend section, an area that boasts an array of many possible options. Large Cap Blend mutual funds most often invest in firms with a market capitalization of $10 billion or more. By investing in bigger companies, these funds offer more stability, and are often well-suited for investors with a "buy and hold" mindset. Blended funds mix large, established companies into their holdings, which gives investors exposure to both value and growth at the same time.
History of Fund/Manager
VCSAX finds itself in the Vanguard Group family, based out of Malvern, PA. The Vanguard Consumer Staples Index Administrative made its debut in January of 2004 and VCSAX has managed to accumulate roughly $699.16 million in assets, as of the most recently available information. Michael A. Johnson is the fund's current manager and has held that role since December of 2010.
Performance
Investors naturally seek funds with strong performance. This fund has delivered a 5-year annualized total return of 12.4%, and is in the bottom third among its category peers. Investors who prefer analyzing shorter time frames should look at its 3-year annualized total return of 9.06%, which places it in the bottom 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, VCSAX's standard deviation comes in at 9.35%, compared to the category average of 10.58%. Over the past 5 years, the standard deviation of the fund is 9.85% compared to the category average of 10.09%. This makes the fund less volatile than its peers over the past half-decade.
Risk Factors
Investors cannot discount the risks to this segment though, as it is always important to remember the downside for any potential investment. VCSAX lost 27.95% in the most recent bear market and outperformed its peer group by 21.81%. This could mean that the fund is a better choice than comparable funds during a bear market.
Investors should note that the fund has a 5-year beta of 0.7, so it is likely going to be less volatile than the market at large. 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. VCSAX has generated a positive alpha over the past five years of 1.44, demonstrating that managers in this portfolio are skilled in picking securities that generate better-than-benchmark returns.
Expenses
As competition heats up in the mutual fund market, costs become increasingly important. Compared to its otherwise identical counterpart, a low-cost product will be an outperformer, all other things being equal. Thus, taking a closer look at cost-related metrics is vital for investors. In terms of fees, VCSAX is a no load fund. It has an expense ratio of 0.10% compared to the category average of 0.91%. VCSAX is actually cheaper than its peers when you consider factors like cost.
Investors should also note that the minimum initial investment for the product is $100,000 and that each subsequent investment needs to be at $1.
Bottom Line
Overall, Vanguard Consumer Staples Index Administrative has a high Zacks Mutual Fund rank, and in conjunction with its comparatively weak performance, average downside risk, and lower fees, this fund looks like a great potential choice for investors right now.
For additional information on this product, or to compare it to other mutual funds in the Large Cap Blend, make sure to go to www.zacks.com/funds/mutual-funds for additional information. If you are more of a stock investor, make sure to also check out our Zacks Rank, and our full suite of tools we have available for novice and professional investors alike.