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Is Vanguard Mid-Cap Growth Index Admiral (VMGMX) a Strong Mutual Fund Pick Right Now?
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Are you on the hunt for a Mutual Fund Equity Report fund? You should think about starting with Vanguard Mid-Cap Growth Index Admiral (VMGMX - 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.
History of Fund/Manager
Vanguard Group is based in Malvern, PA, and is the manager of VMGMX. Since Vanguard Mid-Cap Growth Index Admiral made its debut in September of 2011, VMGMX has garnered more than $9.61 billion in assets. The fund's current manager, Donald Butler, has been in charge of the fund since February of 2013.
Performance
Investors naturally seek funds with strong performance. VMGMX has a 5-year annualized total return of 8.18% and it sits in the middle 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 6.48%, 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 21.41%, the standard deviation of VMGMX over the past three years is 21.02%. The standard deviation of the fund over the past 5 years is 21.9% compared to the category average of 18.92%. 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. VMGMX has a 5-year beta of 1.1, 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. VMGMX's 5-year performance has produced a negative alpha of -3, 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 largely on equities that are traded in the United States.
The mutual fund currently has 93.71% of its holdings in stocks, which have an average market capitalization of $25.66 billion. The fund has the heaviest exposure to the following market sectors:
Technology
Retail Trade
With turnover at about 22%, this fund makes fewer trades than its comparable peers.
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, VMGMX is a no load fund. It has an expense ratio of 0.07% compared to the category average of 0.79%. So, VMGMX is actually cheaper than its peers from a cost perspective.
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.
Bottom Line
For additional information on the Mutual Fund Equity Report area of the mutual fund world, make sure to check out www.zacks.com/funds/mutual-funds. There, you can see more about the ranking process, and dive even deeper into VMGMX too for additional information. If you are more of a stock investor, make sure to also check out our Zacks Rank, and our full suite of tools we have available for novice and professional investors alike.
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Is Vanguard Mid-Cap Growth Index Admiral (VMGMX) a Strong Mutual Fund Pick Right Now?
Are you on the hunt for a Mutual Fund Equity Report fund? You should think about starting with Vanguard Mid-Cap Growth Index Admiral (VMGMX - 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.
History of Fund/Manager
Vanguard Group is based in Malvern, PA, and is the manager of VMGMX. Since Vanguard Mid-Cap Growth Index Admiral made its debut in September of 2011, VMGMX has garnered more than $9.61 billion in assets. The fund's current manager, Donald Butler, has been in charge of the fund since February of 2013.
Performance
Investors naturally seek funds with strong performance. VMGMX has a 5-year annualized total return of 8.18% and it sits in the middle 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 6.48%, 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 21.41%, the standard deviation of VMGMX over the past three years is 21.02%. The standard deviation of the fund over the past 5 years is 21.9% compared to the category average of 18.92%. 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. VMGMX has a 5-year beta of 1.1, 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. VMGMX's 5-year performance has produced a negative alpha of -3, 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 largely on equities that are traded in the United States.
The mutual fund currently has 93.71% of its holdings in stocks, which have an average market capitalization of $25.66 billion. The fund has the heaviest exposure to the following market sectors:
- Technology
- Retail Trade
With turnover at about 22%, this fund makes fewer trades than its comparable peers.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, VMGMX is a no load fund. It has an expense ratio of 0.07% compared to the category average of 0.79%. So, VMGMX is actually cheaper than its peers from a cost perspective.
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.
Bottom Line
For additional information on the Mutual Fund Equity Report area of the mutual fund world, make sure to check out www.zacks.com/funds/mutual-funds. There, you can see more about the ranking process, and dive even deeper into VMGMX too for additional information. If you are more of a stock investor, make sure to also check out our Zacks Rank, and our full suite of tools we have available for novice and professional investors alike.