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Is Vanguard Growth Index Investor (VIGRX) a Strong Mutual Fund Pick Right Now?
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Have you been searching for a Large Cap Growth fund? You might want to begin with Vanguard Growth Index Investor (VIGRX - 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.
Objective
VIGRX is part of the Large Cap Growth section, and this segment boasts an array of other possible options. Large Cap Growth mutual funds purchase stakes in numerous large U.S. companies that are expected to develop and grow at a faster rate than other large-cap stocks. Companies are usually considered to be large-cap if their market capitalization is over $10 billion.
History of Fund/Manager
Vanguard Group is based in Malvern, PA, and is the manager of VIGRX. The Vanguard Growth Index Investor made its debut in November of 1992 and VIGRX has managed to accumulate roughly $738.51 million in assets, as of the most recently available information. The fund's current manager, Gerard O'Reilly, has been in charge of the fund since November of 2000.
Performance
Investors naturally seek funds with strong performance. This fund carries a 5-year annualized total return of 21.43%, and it sits 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 19.76%, 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. Compared to the category average of 15.67%, the standard deviation of VIGRX over the past three years is 19.99%. The fund's standard deviation over the past 5 years is 16.22% compared to the category average of 13.24%. This makes the fund more volatile than its peers over the past half-decade.
Risk Factors
Investors should note that the fund has a 5-year beta of 1.04, so it is likely going to be more volatile than the market at large. Because alpha represents a portfolio's performance on a risk-adjusted basis relative to a benchmark, which is the S&P 500 in this case, one should pay attention to this metric as well. VIGRX has generated a positive alpha over the past five years of 4.15, demonstrating that managers in this portfolio are skilled in picking 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 primarily on equities that are traded in the United States.
As of the last filing date, the mutual fund has 93.14% of its assets in stocks, which have an average market capitalization of $406.09 billion. The fund has the heaviest exposure to the following market sectors:
Technology
Retail Trade
Turnover is 6%, which means, on average, the fund makes fewer trades than the average comparable fund.
Expenses
For investors, taking a closer look at cost-related metrics is key, since costs are increasingly important for mutual fund investing. Competition is heating up in this space, and a lower cost product will likely outperform its otherwise identical counterpart, all things being equal. In terms of fees, VIGRX is a no load fund. It has an expense ratio of 0.17% compared to the category average of 1.03%. VIGRX is actually cheaper than its peers when you consider factors like cost.
Investors should also note that the minimum initial investment for the product is $0 and that each subsequent investment has no minimum amount.
Bottom Line
For additional information on this product, or to compare it to other mutual funds in the Large Cap Growth, make sure to go to www.zacks.com/funds/mutual-funds 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 Growth Index Investor (VIGRX) a Strong Mutual Fund Pick Right Now?
Have you been searching for a Large Cap Growth fund? You might want to begin with Vanguard Growth Index Investor (VIGRX - 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.
Objective
VIGRX is part of the Large Cap Growth section, and this segment boasts an array of other possible options. Large Cap Growth mutual funds purchase stakes in numerous large U.S. companies that are expected to develop and grow at a faster rate than other large-cap stocks. Companies are usually considered to be large-cap if their market capitalization is over $10 billion.
History of Fund/Manager
Vanguard Group is based in Malvern, PA, and is the manager of VIGRX. The Vanguard Growth Index Investor made its debut in November of 1992 and VIGRX has managed to accumulate roughly $738.51 million in assets, as of the most recently available information. The fund's current manager, Gerard O'Reilly, has been in charge of the fund since November of 2000.
Performance
Investors naturally seek funds with strong performance. This fund carries a 5-year annualized total return of 21.43%, and it sits 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 19.76%, 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. Compared to the category average of 15.67%, the standard deviation of VIGRX over the past three years is 19.99%. The fund's standard deviation over the past 5 years is 16.22% compared to the category average of 13.24%. This makes the fund more volatile than its peers over the past half-decade.
Risk Factors
Investors should note that the fund has a 5-year beta of 1.04, so it is likely going to be more volatile than the market at large. Because alpha represents a portfolio's performance on a risk-adjusted basis relative to a benchmark, which is the S&P 500 in this case, one should pay attention to this metric as well. VIGRX has generated a positive alpha over the past five years of 4.15, demonstrating that managers in this portfolio are skilled in picking 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 primarily on equities that are traded in the United States.
As of the last filing date, the mutual fund has 93.14% of its assets in stocks, which have an average market capitalization of $406.09 billion. The fund has the heaviest exposure to the following market sectors:
- Technology
- Retail Trade
Turnover is 6%, which means, on average, the fund makes fewer trades than the average comparable fund.Expenses
For investors, taking a closer look at cost-related metrics is key, since costs are increasingly important for mutual fund investing. Competition is heating up in this space, and a lower cost product will likely outperform its otherwise identical counterpart, all things being equal. In terms of fees, VIGRX is a no load fund. It has an expense ratio of 0.17% compared to the category average of 1.03%. VIGRX is actually cheaper than its peers when you consider factors like cost.
Investors should also note that the minimum initial investment for the product is $0 and that each subsequent investment has no minimum amount.
Bottom Line
For additional information on this product, or to compare it to other mutual funds in the Large Cap Growth, make sure to go to www.zacks.com/funds/mutual-funds 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.