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Is Vanguard Institutional Total Stock Market Plus (VITPX) a Strong Mutual Fund Pick Right Now?
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If investors are looking at the Large Cap Blend fund category, Vanguard Institutional Total Stock Market Plus (VITPX - Free Report) could be a potential option. VITPX possesses a Zacks Mutual Fund Rank of 2 (Buy), which is based on nine forecasting factors like size, cost, and past performance.
Objective
We note that VITPX is a Large Cap Blend option, an area loaded with different options. More often than not, Large Cap Blend mutual funds invest in companies with a market cap of over $10 billion. Buying stakes in bigger companies offer these funds more stability, and are well-suited for investors with a " buy and hold " mindset. Additionally, blended funds mix large, more established firms into their portfolios, giving investors exposure to value and growth opportunities.
History of Fund/Manager
Vanguard Group is based in Malvern, PA, and is the manager of VITPX. Since Vanguard Institutional Total Stock Market Plus made its debut in May of 2001, VITPX has garnered more than $35.21 billion in assets. Walter Nejman is the fund's current manager and has held that role since April of 2016.
Performance
Obviously, what investors are looking for in these funds is strong performance relative to their peers. This fund has delivered a 5-year annualized total return of 10.64%, and is 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 11.83%, which places it in the top 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. Compared to the category average of 10.05%, the standard deviation of VITPX over the past three years is 9.83%. Over the past 5 years, the standard deviation of the fund is 10.23% compared to the category average of 10.52%. This makes the fund less volatile than its peers over the past half-decade.
Risk Factors
It's always important to be aware of the downsides to any future investment, so one should not discount the risks that come with this segment. In VITPX's case, the fund lost 50.79% in the most recent bear market and underperformed comparable funds by 1.19%. This means that the fund could possibly be a worse choice than its peers during a down market environment.
Nevertheless, investors should also note that the fund has a 5-year beta of 1.01, which means it is hypothetically as volatile as 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. VITPX's 5-year performance has produced a negative alpha of -0.54, which means managers in this portfolio find it difficult to pick securities that generate better-than-benchmark returns.
Holdings
Investigating 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.
The mutual fund currently has 86.58% of its holdings in stocks, which have an average market capitalization of $203.10 billion. The fund has the heaviest exposure to the following market sectors:
Technology
Finance
Industrial Cyclical
With turnover at about 12%, this fund is making fewer trades than the average comparable fund.
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, VITPX is a no load fund. It has an expense ratio of 0.02% compared to the category average of 0.98%. Looking at the fund from a cost perspective, VITPX is actually cheaper than its peers.
This fund requires a minimum initial investment of $100 million, and each subsequent investment should be at least $1.
Bottom Line
Overall, Vanguard Institutional Total Stock Market Plus ( VITPX ) has a high Zacks Mutual Fund rank, and in conjunction with its comparatively strong performance, average downside risk, and lower fees, this fund looks like a good potential choice for investors right now.
Want even more information about VITPX? Then go over to Zacks.com and check out our mutual fund comparison tool, and all of the other great features that we have to help you with your mutual fund analysis 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 Institutional Total Stock Market Plus (VITPX) a Strong Mutual Fund Pick Right Now?
If investors are looking at the Large Cap Blend fund category, Vanguard Institutional Total Stock Market Plus (VITPX - Free Report) could be a potential option. VITPX possesses a Zacks Mutual Fund Rank of 2 (Buy), which is based on nine forecasting factors like size, cost, and past performance.
Objective
We note that VITPX is a Large Cap Blend option, an area loaded with different options. More often than not, Large Cap Blend mutual funds invest in companies with a market cap of over $10 billion. Buying stakes in bigger companies offer these funds more stability, and are well-suited for investors with a " buy and hold " mindset. Additionally, blended funds mix large, more established firms into their portfolios, giving investors exposure to value and growth opportunities.
History of Fund/Manager
Vanguard Group is based in Malvern, PA, and is the manager of VITPX. Since Vanguard Institutional Total Stock Market Plus made its debut in May of 2001, VITPX has garnered more than $35.21 billion in assets. Walter Nejman is the fund's current manager and has held that role since April of 2016.
Performance
Obviously, what investors are looking for in these funds is strong performance relative to their peers. This fund has delivered a 5-year annualized total return of 10.64%, and is 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 11.83%, which places it in the top 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. Compared to the category average of 10.05%, the standard deviation of VITPX over the past three years is 9.83%. Over the past 5 years, the standard deviation of the fund is 10.23% compared to the category average of 10.52%. This makes the fund less volatile than its peers over the past half-decade.
Risk Factors
It's always important to be aware of the downsides to any future investment, so one should not discount the risks that come with this segment. In VITPX's case, the fund lost 50.79% in the most recent bear market and underperformed comparable funds by 1.19%. This means that the fund could possibly be a worse choice than its peers during a down market environment.
Nevertheless, investors should also note that the fund has a 5-year beta of 1.01, which means it is hypothetically as volatile as 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. VITPX's 5-year performance has produced a negative alpha of -0.54, which means managers in this portfolio find it difficult to pick securities that generate better-than-benchmark returns.
Holdings
Investigating 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.
The mutual fund currently has 86.58% of its holdings in stocks, which have an average market capitalization of $203.10 billion. The fund has the heaviest exposure to the following market sectors:
- Technology
- Finance
- Industrial Cyclical
With turnover at about 12%, this fund is making fewer trades than the average comparable fund.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, VITPX is a no load fund. It has an expense ratio of 0.02% compared to the category average of 0.98%. Looking at the fund from a cost perspective, VITPX is actually cheaper than its peers.
This fund requires a minimum initial investment of $100 million, and each subsequent investment should be at least $1.
Bottom Line
Overall, Vanguard Institutional Total Stock Market Plus ( VITPX ) has a high Zacks Mutual Fund rank, and in conjunction with its comparatively strong performance, average downside risk, and lower fees, this fund looks like a good potential choice for investors right now.
Want even more information about VITPX? Then go over to Zacks.com and check out our mutual fund comparison tool, and all of the other great features that we have to help you with your mutual fund analysis 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.