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Is Vanguard Small-Cap Growth Index Admiral (VSGAX) a Strong Mutual Fund Pick Right Now?
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Investors in search of an Index fund might want to consider looking at Vanguard Small-Cap Growth Index Admiral (VSGAX - Free Report) . While this fund is not tracked by the Zacks Mutual Fund Rank, we were able to examine other factors like performance, volatility, and cost.
History of Fund/Manager
Vanguard Group is based in Malvern, PA, and is the manager of VSGAX. Vanguard Small-Cap Growth Index Admiral debuted in September of 2011. Since then, VSGAX has accumulated assets of about $10.38 billion, according to the most recently available information. The fund's current manager, Gerard C. O'Reilly, has been in charge of the fund since September of 2011.
Performance
Of course, investors look for strong performance in funds. This fund in particular has delivered a 5-year annualized total return of 8.71%, 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 15.76%, 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. The standard deviation of VSGAX over the past three years is 15.02% compared to the category average of 8.45%. Over the past 5 years, the standard deviation of the fund is 15.15% compared to the category average of 9.13%. This makes the fund more volatile than its peers over the past half-decade.
Risk Factors
Investors should always remember the downsides to a potential investment, and this segment carries some risks one should be aware of.
Investors should note that the fund has a 5-year beta of 1.18, 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. VSGAX's 5-year performance has produced a negative alpha of -3.22, 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 primarily on equities that are traded in the United States.
Right now, 79.2% of this mutual fund's holdings are stocks, with an average market capitalization of $4.46 billion. The fund has the heaviest exposure to the following market sectors:
Technology
Finance
Other
Industrial Cyclical
Health
With turnover at about 22%, this fund makes 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, VSGAX is a no load fund. It has an expense ratio of 0.07% compared to the category average of 0.76%. So, VSGAX is actually cheaper than its peers from a cost perspective.
While the minimum initial investment for the product is $3,000, investors should also note that each subsequent investment needs to be at least $1.
Bottom Line
Want even more information about VSGAX? 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. 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 Small-Cap Growth Index Admiral (VSGAX) a Strong Mutual Fund Pick Right Now?
Investors in search of an Index fund might want to consider looking at Vanguard Small-Cap Growth Index Admiral (VSGAX - Free Report) . While this fund is not tracked by the Zacks Mutual Fund Rank, we were able to examine other factors like performance, volatility, and cost.
History of Fund/Manager
Vanguard Group is based in Malvern, PA, and is the manager of VSGAX. Vanguard Small-Cap Growth Index Admiral debuted in September of 2011. Since then, VSGAX has accumulated assets of about $10.38 billion, according to the most recently available information. The fund's current manager, Gerard C. O'Reilly, has been in charge of the fund since September of 2011.
Performance
Of course, investors look for strong performance in funds. This fund in particular has delivered a 5-year annualized total return of 8.71%, 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 15.76%, 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. The standard deviation of VSGAX over the past three years is 15.02% compared to the category average of 8.45%. Over the past 5 years, the standard deviation of the fund is 15.15% compared to the category average of 9.13%. This makes the fund more volatile than its peers over the past half-decade.
Risk Factors
Investors should always remember the downsides to a potential investment, and this segment carries some risks one should be aware of.
Investors should note that the fund has a 5-year beta of 1.18, 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. VSGAX's 5-year performance has produced a negative alpha of -3.22, 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 primarily on equities that are traded in the United States.
Right now, 79.2% of this mutual fund's holdings are stocks, with an average market capitalization of $4.46 billion. The fund has the heaviest exposure to the following market sectors:
- Technology
- Finance
- Other
- Industrial Cyclical
- Health
With turnover at about 22%, this fund makes 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, VSGAX is a no load fund. It has an expense ratio of 0.07% compared to the category average of 0.76%. So, VSGAX is actually cheaper than its peers from a cost perspective.
While the minimum initial investment for the product is $3,000, investors should also note that each subsequent investment needs to be at least $1.
Bottom Line
Want even more information about VSGAX? 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. 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.