Any investors hoping to find a Mutual Fund Equity Report fund could think about starting with Vanguard Explorer Fund Investor (
VEXPX Quick Quote VEXPX - Free Report) . VEXPX holds a Zacks Mutual Fund Rank of 2 (Buy), which is based on nine forecasting factors like size, cost, and past performance. History of Fund/Manager
Vanguard Group is based in Malvern, PA, and is the manager of VEXPX. Since Vanguard Explorer Fund Investor made its debut in December of 1967, VEXPX has garnered more than $3.07 billion in assets. A team of investment professionals is the fund's current manager.
Investors naturally seek funds with strong performance. VEXPX has a 5-year annualized total return of 11.83% and is in the top third among its category peers. Investors who prefer analyzing shorter time frames should look at its 3-year annualized total return of 9.63%, 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. VEXPX's standard deviation over the past three years is 24.15% compared to the category average of 20.21%. The fund's standard deviation over the past 5 years is 21.94% compared to the category average of 18.25%. This makes the fund more volatile than its peers over the past half-decade.
The fund has a 5-year beta of 1.16, so investors should note that 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. VEXPX has generated a negative alpha over the past five years of -1.94, demonstrating that managers in this portfolio find it difficult to pick securities that generate better-than-benchmark returns.
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 mostly on equities that are traded in the United States.
As of the last filing date, the mutual fund has 96.36% of its assets in stocks, which have an average market capitalization of $8.08 billion. The fund has the heaviest exposure to the following market sectors:
Technology Industrial Cyclical Finance Health
With turnover at about 48%, this fund makes fewer trades than comparable funds.
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, VEXPX is a no load fund. It has an expense ratio of 0.45% compared to the category average of 1.20%. VEXPX is actually cheaper than its peers when you consider factors like cost.
Investors should also note that the minimum initial investment for the product is $3,000 and that each subsequent investment needs to be at $1.
Overall, Vanguard Explorer Fund Investor ( VEXPX ) has a high Zacks Mutual Fund rank, and in conjunction with its comparatively strong performance, average downside risk, and lower fees, this fund looks like a good potential choice for investors right now.
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