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Is Vanguard Institutional Index Fund (VINIX) 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 Institutional Index Fund (VINIX - Free Report) . The fund does not have a Zacks Mutual Fund Rank, though we have been able to explore other metrics like performance, volatility, and cost.
History of Fund/Manager
VINIX finds itself in the Vanguard Group family, based out of Malvern, PA. Since Vanguard Institutional Index Fund made its debut in July of 1990, VINIX has garnered more than $116.76 billion in assets. The fund's current manager, Donald M. Butler, has been in charge of the fund since December of 2000.
Performance
Investors naturally seek funds with strong performance. This fund in particular has delivered a 5-year annualized total return of 16.13%, 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 11.68%, 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 15.98%, the standard deviation of VINIX over the past three years is 18.69%. Over the past 5 years, the standard deviation of the fund is 15.06% compared to the category average of 13.52%. This makes the fund more volatile than its peers over the past half-decade.
Risk Factors
The fund has a 5-year beta of 1, so investors should note that it is hypothetically as volatile as the market at large. 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. Over the past 5 years, the fund has a negative alpha of -0.02. This means that managers in this portfolio find it difficult to pick securities that generate better-than-benchmark returns.
Holdings
Exploring 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 largely on equities that are traded in the United States.
Currently, this mutual fund is holding 97.09% stock in stocks, and these companies have an average market capitalization of $279.57 billion. The fund has the heaviest exposure to the following market sectors:
Technology
Finance
This fund's turnover is about 4%, so the fund managers are 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, VINIX is a no load fund. It has an expense ratio of 0.04% compared to the category average of 0.80%. So, VINIX is actually cheaper than its peers from a cost perspective.
Investors need to be aware that with this product, the minimum initial investment is $5 million; each subsequent investment needs to be at least $1.
Bottom Line
Your research on the Index segment doesn't have to stop here. You can check out all the great mutual fund tools we have to offer by going to www.zacks.com/funds/mutual-funds to see the additional features we offer 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 Institutional Index Fund (VINIX) a Strong Mutual Fund Pick Right Now?
Investors in search of an Index fund might want to consider looking at Vanguard Institutional Index Fund (VINIX - Free Report) . The fund does not have a Zacks Mutual Fund Rank, though we have been able to explore other metrics like performance, volatility, and cost.
History of Fund/Manager
VINIX finds itself in the Vanguard Group family, based out of Malvern, PA. Since Vanguard Institutional Index Fund made its debut in July of 1990, VINIX has garnered more than $116.76 billion in assets. The fund's current manager, Donald M. Butler, has been in charge of the fund since December of 2000.
Performance
Investors naturally seek funds with strong performance. This fund in particular has delivered a 5-year annualized total return of 16.13%, 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 11.68%, 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 15.98%, the standard deviation of VINIX over the past three years is 18.69%. Over the past 5 years, the standard deviation of the fund is 15.06% compared to the category average of 13.52%. This makes the fund more volatile than its peers over the past half-decade.
Risk Factors
The fund has a 5-year beta of 1, so investors should note that it is hypothetically as volatile as the market at large. 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. Over the past 5 years, the fund has a negative alpha of -0.02. This means that managers in this portfolio find it difficult to pick securities that generate better-than-benchmark returns.
Holdings
Exploring 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 largely on equities that are traded in the United States.
Currently, this mutual fund is holding 97.09% stock in stocks, and these companies have an average market capitalization of $279.57 billion. The fund has the heaviest exposure to the following market sectors:
- Technology
- Finance
This fund's turnover is about 4%, so the fund managers are 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, VINIX is a no load fund. It has an expense ratio of 0.04% compared to the category average of 0.80%. So, VINIX is actually cheaper than its peers from a cost perspective.
Investors need to be aware that with this product, the minimum initial investment is $5 million; each subsequent investment needs to be at least $1.
Bottom Line
Your research on the Index segment doesn't have to stop here. You can check out all the great mutual fund tools we have to offer by going to www.zacks.com/funds/mutual-funds to see the additional features we offer 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.