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Is Vanguard Emerging Markets Stock Index Admiral (VEMAX) a Strong Mutual Fund Pick Right Now?
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If you're looking for a Non US - Equity fund category, then a possible option is Vanguard Emerging Markets Stock Index Admiral (VEMAX - 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
We classify VEMAX in the Non US - Equity category, which is an area rife with potential choices. Investing in companies outside the United States is how Non US - Equity funds set themselves apart, since global funds tend to keep a good portion of their portfolio stateside. Many of these funds like to allocate across emerging and developed markets, and will often focus on all cap levels.
History of Fund/Manager
Vanguard Group is based in Malvern, PA, and is the manager of VEMAX. Vanguard Emerging Markets Stock Index Admiral made its debut in June of 2006, and since then, VEMAX has accumulated about $18.02 billion in assets, per the most up-to-date date available. The fund is currently managed by Michael Perre who has been in charge of the fund since August of 2008.
Performance
Of course, investors look for strong performance in funds. VEMAX has a 5-year annualized total return of 14.3% and it sits in the middle 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 6.25%, which places it in the bottom 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 VEMAX over the past three years is 19.01% compared to the category average of 15.42%. The standard deviation of the fund over the past 5 years is 17.05% compared to the category average of 12.91%. 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 0.85, which means it is hypothetically less volatile than 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. VEMAX's 5-year performance has produced a positive alpha of 0.46, which means managers in this portfolio are skilled in picking securities that generate better-than-benchmark returns.
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, VEMAX is a no load fund. It has an expense ratio of 0.14% compared to the category average of 1.19%. So, VEMAX is actually cheaper than its peers from a cost perspective.
While the minimum initial investment for the product is $3,000, investors should also note that each subsequent investment needs to be at least $1.
Bottom Line
This could just be the start of your research on VEMAXin the Non US - 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. 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 Emerging Markets Stock Index Admiral (VEMAX) a Strong Mutual Fund Pick Right Now?
If you're looking for a Non US - Equity fund category, then a possible option is Vanguard Emerging Markets Stock Index Admiral (VEMAX - 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
We classify VEMAX in the Non US - Equity category, which is an area rife with potential choices. Investing in companies outside the United States is how Non US - Equity funds set themselves apart, since global funds tend to keep a good portion of their portfolio stateside. Many of these funds like to allocate across emerging and developed markets, and will often focus on all cap levels.
History of Fund/Manager
Vanguard Group is based in Malvern, PA, and is the manager of VEMAX. Vanguard Emerging Markets Stock Index Admiral made its debut in June of 2006, and since then, VEMAX has accumulated about $18.02 billion in assets, per the most up-to-date date available. The fund is currently managed by Michael Perre who has been in charge of the fund since August of 2008.
Performance
Of course, investors look for strong performance in funds. VEMAX has a 5-year annualized total return of 14.3% and it sits in the middle 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 6.25%, which places it in the bottom 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 VEMAX over the past three years is 19.01% compared to the category average of 15.42%. The standard deviation of the fund over the past 5 years is 17.05% compared to the category average of 12.91%. 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 0.85, which means it is hypothetically less volatile than 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. VEMAX's 5-year performance has produced a positive alpha of 0.46, which means managers in this portfolio are skilled in picking securities that generate better-than-benchmark returns.
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, VEMAX is a no load fund. It has an expense ratio of 0.14% compared to the category average of 1.19%. So, VEMAX is actually cheaper than its peers from a cost perspective.
While the minimum initial investment for the product is $3,000, investors should also note that each subsequent investment needs to be at least $1.
Bottom Line
This could just be the start of your research on VEMAXin the Non US - 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. 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.