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Is Invesco Small Cap Value Y (VSMIX) a Strong Mutual Fund Pick Right Now?
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If you've been stuck searching for Mutual Fund Equity Report funds, consider Invesco Small Cap Value Y (VSMIX - Free Report) as a possibility. VSMIX bears a Zacks Mutual Fund Rank of 1 (Strong Buy), which is based on nine forecasting factors like size, cost, and past performance.
History of Fund/Manager
Invesco is based in Kansas City, MO, and is the manager of VSMIX. Since Invesco Small Cap Value Y made its debut in August of 2005, VSMIX has garnered more than $765.54 million in assets. Jonathan Mueller is the fund's current manager and has held that role since June of 2010.
Performance
Obviously, what investors are looking for in these funds is strong performance relative to their peers. VSMIX has a 5-year annualized total return of 12.3% and is in the top third among its category peers. But if you are looking for a shorter time frame, it is also worth looking at its 3-year annualized total return of 26.24%, 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 17.31%, the standard deviation of VSMIX over the past three years is 34.26%. The fund's standard deviation over the past 5 years is 29.08% compared to the category average of 15.03%. 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 1.63, which means it is hypothetically 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. VSMIX's 5-year performance has produced a negative alpha of -12.22, which means managers in this portfolio find it difficult to pick securities that generate better-than-benchmark returns.
Holdings
Examining 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 principally on equities that are traded in the United States.
The mutual fund currently has 89.69% of its holdings in stocks, with an average market capitalization of $6.26 billion. The fund has the heaviest exposure to the following market sectors:
Finance
Industrial Cyclical
Other
This fund's turnover is about 142%, so the fund managers are making more trades in a given year than the category average.
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, VSMIX is a no load fund. It has an expense ratio of 0.87% compared to the category average of 1.21%. From a cost perspective, VSMIX is actually cheaper than its peers.
Investors need to be aware that with this product, the minimum initial investment is $1,000; each subsequent investment needs to be at least $50.
Bottom Line
Overall, Invesco Small Cap Value Y ( VSMIX ) has a high Zacks Mutual Fund rank, and in conjunction with its comparatively strong performance, worse downside risk, and lower fees, Invesco Small Cap Value Y ( VSMIX ) looks like a good potential choice for investors right now.
For additional information on this product, or to compare it to other mutual funds in the Mutual Fund Equity Report, make sure to go to www.zacks.com/funds/mutual-funds for additional information. Want to learn even more? We have a full suite of tools on stocks that you can use to find the best choices for your portfolio too, no matter what kind of investor you are.
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Is Invesco Small Cap Value Y (VSMIX) a Strong Mutual Fund Pick Right Now?
If you've been stuck searching for Mutual Fund Equity Report funds, consider Invesco Small Cap Value Y (VSMIX - Free Report) as a possibility. VSMIX bears a Zacks Mutual Fund Rank of 1 (Strong Buy), which is based on nine forecasting factors like size, cost, and past performance.
History of Fund/Manager
Invesco is based in Kansas City, MO, and is the manager of VSMIX. Since Invesco Small Cap Value Y made its debut in August of 2005, VSMIX has garnered more than $765.54 million in assets. Jonathan Mueller is the fund's current manager and has held that role since June of 2010.
Performance
Obviously, what investors are looking for in these funds is strong performance relative to their peers. VSMIX has a 5-year annualized total return of 12.3% and is in the top third among its category peers. But if you are looking for a shorter time frame, it is also worth looking at its 3-year annualized total return of 26.24%, 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 17.31%, the standard deviation of VSMIX over the past three years is 34.26%. The fund's standard deviation over the past 5 years is 29.08% compared to the category average of 15.03%. 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 1.63, which means it is hypothetically 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. VSMIX's 5-year performance has produced a negative alpha of -12.22, which means managers in this portfolio find it difficult to pick securities that generate better-than-benchmark returns.
Holdings
Examining 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 principally on equities that are traded in the United States.
The mutual fund currently has 89.69% of its holdings in stocks, with an average market capitalization of $6.26 billion. The fund has the heaviest exposure to the following market sectors:
- Finance
- Industrial Cyclical
- Other
This fund's turnover is about 142%, so the fund managers are making more trades in a given year than the category average.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, VSMIX is a no load fund. It has an expense ratio of 0.87% compared to the category average of 1.21%. From a cost perspective, VSMIX is actually cheaper than its peers.
Investors need to be aware that with this product, the minimum initial investment is $1,000; each subsequent investment needs to be at least $50.
Bottom Line
Overall, Invesco Small Cap Value Y ( VSMIX ) has a high Zacks Mutual Fund rank, and in conjunction with its comparatively strong performance, worse downside risk, and lower fees, Invesco Small Cap Value Y ( VSMIX ) looks like a good potential choice for investors right now.
For additional information on this product, or to compare it to other mutual funds in the Mutual Fund Equity Report, make sure to go to www.zacks.com/funds/mutual-funds for additional information. Want to learn even more? We have a full suite of tools on stocks that you can use to find the best choices for your portfolio too, no matter what kind of investor you are.