We use cookies to understand how you use our site and to improve your experience. This includes personalizing content and advertising. To learn more, click here. By continuing to use our site, you accept our use of cookies, revised Privacy Policy and Terms of Service.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
Is Vanguard Utilities Index Admiral (VUIAX) a Strong Mutual Fund Pick Right Now?
Read MoreHide Full Article
Are you on the hunt for a Sector - Utilities fund? You should think about starting with Vanguard Utilities Index Admiral (VUIAX - Free Report) . VUIAX has no Zacks Mutual Fund Rank, but we have been able to look into other metrics like performance, volatility, and cost.
Objective
Zacks categorizes VUIAX in Sector - Utilities, which is a segment packed with options. Known for its stability, the utility industry is perfect for investors seeking low risk. Sector - Utilities mutual funds focus on companies that provide essential services to millions of people on a daily basis: think electric power, gas distribution, and water supply.
History of Fund/Manager
Vanguard Group is based in Malvern, PA, and is the manager of VUIAX. Vanguard Utilities Index Admiral made its debut in January of 2004, and since then, VUIAX has accumulated about $1.58 billion in assets, per the most up-to-date date available. The fund is currently managed by Awais Khan who has been in charge of the fund since November of 2017.
Performance
Investors naturally seek funds with strong performance. This fund carries a 5-year annualized total return of 10.28%, and is in the bottom 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 11.19%, which places it in the middle 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 16.7%, the standard deviation of VUIAX over the past three years is 15.08%. The standard deviation of the fund over the past 5 years is 13.4% compared to the category average of 13.94%. This makes the fund less volatile than its peers over the past half-decade.
Risk Factors
Investors should note that the fund has a 5-year beta of 0.38, which means it is hypothetically less volatile than the market at large. 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. Over the past 5 years, the fund has a positive alpha of 3.34. This means that 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, VUIAX is a no load fund. It has an expense ratio of 0.10% compared to the category average of 1.23%. From a cost perspective, VUIAX is actually cheaper than its peers.
While the minimum initial investment for the product is $100,000, investors should also note that each subsequent investment needs to be at least $1.
Bottom Line
Want even more information about VUIAX? Then go over to Zacks.com and check out our mutual fund comparison tool, and all of the other great features that we have to help you with your mutual fund analysis for additional information. If you want to check out our stock reports as well, make sure to go to Zacks.com to see all of the great tools we have to offer, including our time-tested Zacks Rank.
See More Zacks Research for These Tickers
Normally $25 each - click below to receive one report FREE:
Image: Bigstock
Is Vanguard Utilities Index Admiral (VUIAX) a Strong Mutual Fund Pick Right Now?
Are you on the hunt for a Sector - Utilities fund? You should think about starting with Vanguard Utilities Index Admiral (VUIAX - Free Report) . VUIAX has no Zacks Mutual Fund Rank, but we have been able to look into other metrics like performance, volatility, and cost.
Objective
Zacks categorizes VUIAX in Sector - Utilities, which is a segment packed with options. Known for its stability, the utility industry is perfect for investors seeking low risk. Sector - Utilities mutual funds focus on companies that provide essential services to millions of people on a daily basis: think electric power, gas distribution, and water supply.
History of Fund/Manager
Vanguard Group is based in Malvern, PA, and is the manager of VUIAX. Vanguard Utilities Index Admiral made its debut in January of 2004, and since then, VUIAX has accumulated about $1.58 billion in assets, per the most up-to-date date available. The fund is currently managed by Awais Khan who has been in charge of the fund since November of 2017.
Performance
Investors naturally seek funds with strong performance. This fund carries a 5-year annualized total return of 10.28%, and is in the bottom 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 11.19%, which places it in the middle 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 16.7%, the standard deviation of VUIAX over the past three years is 15.08%. The standard deviation of the fund over the past 5 years is 13.4% compared to the category average of 13.94%. This makes the fund less volatile than its peers over the past half-decade.
Risk Factors
Investors should note that the fund has a 5-year beta of 0.38, which means it is hypothetically less volatile than the market at large. 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. Over the past 5 years, the fund has a positive alpha of 3.34. This means that 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, VUIAX is a no load fund. It has an expense ratio of 0.10% compared to the category average of 1.23%. From a cost perspective, VUIAX is actually cheaper than its peers.
While the minimum initial investment for the product is $100,000, investors should also note that each subsequent investment needs to be at least $1.
Bottom Line
Want even more information about VUIAX? Then go over to Zacks.com and check out our mutual fund comparison tool, and all of the other great features that we have to help you with your mutual fund analysis for additional information. If you want to check out our stock reports as well, make sure to go to Zacks.com to see all of the great tools we have to offer, including our time-tested Zacks Rank.