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Is Vanguard Small-Cap Value Index Admiral (VSIAX) a Strong Mutual Fund Pick Right Now?
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If you're looking for a Small Cap Value fund category, then a possible option is Vanguard Small-Cap Value Index Admiral (VSIAX - 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
VSIAX is one of many Small Cap Value funds to choose from. Small Cap Value mutual funds typically invest in companies with market caps under $2 billion. These funds represent value because they offer more bang for an owner's buck, often demonstrated by lower P/E Ratios, high dividend yields, and better-than-average price-to-sales 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 $16.11 billion in assets, as of the most recently available information. William 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. This fund carries a 5-year annualized total return of 13.2%, and is in the middle third among its category peers. Investors who prefer analyzing shorter time frames should look at its 3-year annualized total return of 9.25%, 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. VSIAX's standard deviation over the past three years is 26.08% compared to the category average of 15.57%. The fund's standard deviation over the past 5 years is 21.37% compared to the category average of 13.04%. 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 1.28, which means it is hypothetically more 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. VSIAX's 5-year performance has produced a negative alpha of -6.14, which means managers in this portfolio find it difficult to pick 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, VSIAX is a no load fund. It has an expense ratio of 0.07% compared to the category average of 1.25%. So, VSIAX 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
For additional information on this product, or to compare it to other mutual funds in the Small Cap Value, make sure to go to www.zacks.com/funds/mutual-funds 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.
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Is Vanguard Small-Cap Value Index Admiral (VSIAX) a Strong Mutual Fund Pick Right Now?
If you're looking for a Small Cap Value fund category, then a possible option is Vanguard Small-Cap Value Index Admiral (VSIAX - 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
VSIAX is one of many Small Cap Value funds to choose from. Small Cap Value mutual funds typically invest in companies with market caps under $2 billion. These funds represent value because they offer more bang for an owner's buck, often demonstrated by lower P/E Ratios, high dividend yields, and better-than-average price-to-sales 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 $16.11 billion in assets, as of the most recently available information. William 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. This fund carries a 5-year annualized total return of 13.2%, and is in the middle third among its category peers. Investors who prefer analyzing shorter time frames should look at its 3-year annualized total return of 9.25%, 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. VSIAX's standard deviation over the past three years is 26.08% compared to the category average of 15.57%. The fund's standard deviation over the past 5 years is 21.37% compared to the category average of 13.04%. 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 1.28, which means it is hypothetically more 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. VSIAX's 5-year performance has produced a negative alpha of -6.14, which means managers in this portfolio find it difficult to pick 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, VSIAX is a no load fund. It has an expense ratio of 0.07% compared to the category average of 1.25%. So, VSIAX 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
For additional information on this product, or to compare it to other mutual funds in the Small Cap Value, make sure to go to www.zacks.com/funds/mutual-funds 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.