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Is Vanguard Mid-Cap Value Index Admiral (VMVAX) a Strong Mutual Fund Pick Right Now?
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Index fund seekers should consider taking a look at Vanguard Mid-Cap Value Index Admiral (VMVAX - Free Report) . VMVAX carries a Zacks Mutual Fund Rank of 1 (Strong Buy), which is based on nine forecasting factors like size, cost, and past performance.
History of Fund/Manager
Vanguard Group is based in Malvern, PA, and is the manager of VMVAX. The Vanguard Mid-Cap Value Index Admiral made its debut in September of 2011 and VMVAX has managed to accumulate roughly $8.56 billion in assets, as of the most recently available information. The fund's current manager, Donald M. Butler, has been in charge of the fund since September of 2011.
Performance
Investors naturally seek funds with strong performance. This fund in particular has delivered a 5-year annualized total return of 6.42%, and it sits 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 7.52%, 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 VMVAX over the past three years is 12.92% compared to the category average of 10.97%. The standard deviation of the fund over the past 5 years is 12.58% compared to the category average of 11.26%. This makes the fund more 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.
Investors should not forget about beta, an important way to measure a mutual fund's risk compared to the market as a whole. VMVAX has a 5-year beta of 1.02, which means it is likely to be as volatile as the market average. 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. VMVAX's 5-year performance has produced a negative alpha of -3.02, which means managers in this portfolio find it difficult to pick 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, VMVAX is a no load fund. It has an expense ratio of 0.07% compared to the category average of 1.14%. VMVAX is actually cheaper than its peers when you consider factors like cost.
This fund requires a minimum initial investment of $3,000, and each subsequent investment should be at least $1.
Bottom Line
Overall, Vanguard Mid-Cap Value Index Admiral ( VMVAX ) has a high Zacks Mutual Fund rank, strong performance, average downside risk, and lower fees compared to its peers.
Don't stop here for your research on Index 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 VMVAX to its peers as well 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.
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Is Vanguard Mid-Cap Value Index Admiral (VMVAX) a Strong Mutual Fund Pick Right Now?
Index fund seekers should consider taking a look at Vanguard Mid-Cap Value Index Admiral (VMVAX - Free Report) . VMVAX carries a Zacks Mutual Fund Rank of 1 (Strong Buy), which is based on nine forecasting factors like size, cost, and past performance.
History of Fund/Manager
Vanguard Group is based in Malvern, PA, and is the manager of VMVAX. The Vanguard Mid-Cap Value Index Admiral made its debut in September of 2011 and VMVAX has managed to accumulate roughly $8.56 billion in assets, as of the most recently available information. The fund's current manager, Donald M. Butler, has been in charge of the fund since September of 2011.
Performance
Investors naturally seek funds with strong performance. This fund in particular has delivered a 5-year annualized total return of 6.42%, and it sits 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 7.52%, 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 VMVAX over the past three years is 12.92% compared to the category average of 10.97%. The standard deviation of the fund over the past 5 years is 12.58% compared to the category average of 11.26%. This makes the fund more 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.
Investors should not forget about beta, an important way to measure a mutual fund's risk compared to the market as a whole. VMVAX has a 5-year beta of 1.02, which means it is likely to be as volatile as the market average. 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. VMVAX's 5-year performance has produced a negative alpha of -3.02, which means managers in this portfolio find it difficult to pick 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, VMVAX is a no load fund. It has an expense ratio of 0.07% compared to the category average of 1.14%. VMVAX is actually cheaper than its peers when you consider factors like cost.
This fund requires a minimum initial investment of $3,000, and each subsequent investment should be at least $1.
Bottom Line
Overall, Vanguard Mid-Cap Value Index Admiral ( VMVAX ) has a high Zacks Mutual Fund rank, strong performance, average downside risk, and lower fees compared to its peers.
Don't stop here for your research on Index 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 VMVAX to its peers as well 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.