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Is Vanguard Global Equity Fund (VHGEX) a Strong Mutual Fund Pick Right Now?

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Any investors hoping to find a Global - Equity fund could think about starting with Vanguard Global Equity Fund (VHGEX - Free Report) . VHGEX carries 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 VHGEX is a Global - Equity option, an investment area loaded with different options. While Global - Equity mutual funds invest their assets in large markets--think the U.S., Europe, and Japan--they aren't limited by geography. Their investment technique is one that leverages the global economy in order to offer stable returns.

History of Fund/Manager

VHGEX finds itself in the Vanguard Group family, based out of Malvern, PA. Vanguard Global Equity Fund debuted in August of 1995. Since then, VHGEX has accumulated assets of about $7.87 billion, according to the most recently available information. The fund's current manager is a team of investment professionals.

Performance

Of course, investors look for strong performance in funds. VHGEX has a 5-year annualized total return of 15.64% and it sits 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 10.42%, 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 18.63%, the standard deviation of VHGEX over the past three years is 18.67%. Over the past 5 years, the standard deviation of the fund is 15.2% compared to the category average of 15.49%. This makes the fund less volatile than its peers over the past half-decade.

Risk Factors

With a 5-year beta of 0.97, the fund is likely to be as volatile as the market average. 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. With a positive alpha of 0.07, managers in this portfolio are skilled in picking securities that generate better-than-benchmark returns.

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, VHGEX is a no load fund. It has an expense ratio of 0.45% compared to the category average of 1.14%. VHGEX is actually cheaper than its peers when you consider factors like cost.

Investors need to be aware that with this product, the minimum initial investment is $3,000; each subsequent investment needs to be at least $1.

Bottom Line

Overall, Vanguard Global Equity Fund ( VHGEX ) has a high Zacks Mutual Fund rank, and in conjunction with its comparatively strong performance, average downside risk, and lower fees, Vanguard Global Equity Fund ( VHGEX ) looks like a good potential choice for investors right now.

This could just be the start of your research on VHGEXin the Global - Equity category. Consider going to www.zacks.com/funds/mutual-funds for additional information about this fund, and all the others that we rank as well 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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