Have you been searching for a Small Cap Value fund? You might want to begin with Vanguard Small-Cap Value Index Admiral (VSIAX Quick QuoteVSIAX - Free Report) . VSIAX has no Zacks Mutual Fund Rank, but we have been able to look into other metrics like performance, volatility, and cost.

Objective

The world of Small Cap Value mutual funds is an area filled with options, such as VSIAX. Small Cap Value funds invest in small companies with stock market valuation less than $2 billion. These funds offer more bang for an owner's buck, providing low P/E ratios, high dividend yields, and better-than-average P/S ratios.

History of Fund/Manager

Vanguard Group is based in Malvern, PA, and is the manager of VSIAX. The Vanguard Small-Cap Value Index Admiral made its debut in September of 2011 and VSIAX has managed to accumulate roughly $11.98 billion in assets, as of the most recently available information. William A. Coleman is the fund's current manager and has held that role since April of 2016.

Performance

Of course, investors look for strong performance in funds. VSIAX has a 5-year annualized total return of 3.99% and is in the top 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 0.57%, 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. Over the past three years, VSIAX's standard deviation comes in at 16.35%, compared to the category average of 11.63%. The standard deviation of the fund over the past 5 years is 15.39% compared to the category average of 11.8%. This makes the fund more 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.

Even still, the fund has a 5-year beta of 1.11, so investors should note that it is hypothetically 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. Over the past 5 years, the fund has a negative alpha of -5.35. This means that 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 mostly on equities that are traded in the United States.

Currently, this mutual fund is holding 97.88% stock in stocks, which have an average market capitalization of $4.46 billion. The fund has the heaviest exposure to the following market sectors:

1. Finance
2. Industrial Cyclical

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, VSIAX is a no load fund. It has an expense ratio of 0.07% compared to the category average of 1.28%. VSIAX 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

For additional information on the Small Cap Value area of the mutual fund world, make sure to check out www.zacks.com/funds/mutual-funds. There, you can see more about the ranking process, and dive even deeper into VSIAX too for additional information. For analysis of the rest of your portfolio, make sure to visit Zacks.com for our full suite of tools which will help you investigate all of your stocks and funds in one place.