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Is Invesco Small Cap Value Y (VSMIX) a Strong Mutual Fund Pick Right Now?
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There are plenty of choices in the Mutual Fund Equity Report category, but where should you start your research? Well, one fund that might be worth investigating is Invesco Small Cap Value Y (VSMIX - Free Report) . VSMIX carries 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
VSMIX finds itself in the Invesco family, based out of Kansas City, MO. Invesco Small Cap Value Y debuted in August of 2005. Since then, VSMIX has accumulated assets of about $1.03 billion, according to the most recently available information. Jonathan Mueller is the fund's current manager and has held that role since June of 2010.
Performance
Of course, investors look for strong performance in funds. This fund has delivered a 5-year annualized total return of 9.35%, and it sits 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 14.53%, 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. The standard deviation of VSMIX over the past three years is 32.87% compared to the category average of 17.52%. The fund's standard deviation over the past 5 years is 29.88% compared to the category average of 15.71%. This makes the fund more volatile than its peers over the past half-decade.
Risk Factors
Investors should not forget about beta, an important way to measure a mutual fund's risk compared to the market as a whole. VSMIX has a 5-year beta of 1.49, which means it is likely to be more volatile than the market average. 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. VSMIX's 5-year performance has produced a negative alpha of -3.9, which means managers in this portfolio find it difficult to pick securities that generate better-than-benchmark returns.
Holdings
Investigating 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 largely on equities that are traded in the United States.
This fund is currently holding about 78.42% stock in stocks, and these companies have an average market capitalization of $5.80 billion. The fund has the heaviest exposure to the following market sectors:
Industrial Cyclical
Technology
Other
Energy
With turnover at about 142%, this fund is making more trades in a given year than the category average.
Expenses
As competition heats up in the mutual fund market, costs become increasingly important. Compared to its otherwise identical counterpart, a low-cost product will be an outperformer, all other things being equal. Thus, taking a closer look at cost-related metrics is vital for investors. In terms of fees, VSMIX is a no load fund. It has an expense ratio of 0.83% compared to the category average of 1.21%. VSMIX is actually cheaper than its peers when you consider factors like cost.
This fund requires a minimum initial investment of $1,000, and each subsequent investment should 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.
This could just be the start of your research on VSMIXin the Mutual Fund Equity Report 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. 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 Invesco Small Cap Value Y (VSMIX) a Strong Mutual Fund Pick Right Now?
There are plenty of choices in the Mutual Fund Equity Report category, but where should you start your research? Well, one fund that might be worth investigating is Invesco Small Cap Value Y (VSMIX - Free Report) . VSMIX carries 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
VSMIX finds itself in the Invesco family, based out of Kansas City, MO. Invesco Small Cap Value Y debuted in August of 2005. Since then, VSMIX has accumulated assets of about $1.03 billion, according to the most recently available information. Jonathan Mueller is the fund's current manager and has held that role since June of 2010.
Performance
Of course, investors look for strong performance in funds. This fund has delivered a 5-year annualized total return of 9.35%, and it sits 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 14.53%, 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. The standard deviation of VSMIX over the past three years is 32.87% compared to the category average of 17.52%. The fund's standard deviation over the past 5 years is 29.88% compared to the category average of 15.71%. This makes the fund more volatile than its peers over the past half-decade.
Risk Factors
Investors should not forget about beta, an important way to measure a mutual fund's risk compared to the market as a whole. VSMIX has a 5-year beta of 1.49, which means it is likely to be more volatile than the market average. 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. VSMIX's 5-year performance has produced a negative alpha of -3.9, which means managers in this portfolio find it difficult to pick securities that generate better-than-benchmark returns.
Holdings
Investigating 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 largely on equities that are traded in the United States.
This fund is currently holding about 78.42% stock in stocks, and these companies have an average market capitalization of $5.80 billion. The fund has the heaviest exposure to the following market sectors:
- Industrial Cyclical
- Technology
- Other
- Energy
With turnover at about 142%, this fund is making more trades in a given year than the category average.Expenses
As competition heats up in the mutual fund market, costs become increasingly important. Compared to its otherwise identical counterpart, a low-cost product will be an outperformer, all other things being equal. Thus, taking a closer look at cost-related metrics is vital for investors. In terms of fees, VSMIX is a no load fund. It has an expense ratio of 0.83% compared to the category average of 1.21%. VSMIX is actually cheaper than its peers when you consider factors like cost.
This fund requires a minimum initial investment of $1,000, and each subsequent investment should 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.
This could just be the start of your research on VSMIXin the Mutual Fund Equity Report 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. 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.