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Is Vanguard Materials Index Admiral (VMIAX) a Strong Mutual Fund Pick Right Now?
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Have you been searching for a Mid Cap Blend fund? You might want to begin with Vanguard Materials Index Admiral (VMIAX - Free Report) . VMIAX has no Zacks Mutual Fund Rank, but we have been able to look into other metrics like performance, volatility, and cost.
Objective
VMIAX is classified in the Mid Cap Blend category by Zacks, an area full of possibilities. Mid Cap Blend mutual funds usually feature a portfolio with stocks of various styles and sizes, allowing for diversification within a strategy that focuses on companies in the $2 billion to $10 billion market cap range. A mid-cap blend fund provides exposure to exciting growth potential, income opportunities, and value picks, while also attempting some level of stability through diversification.
History of Fund/Manager
Vanguard Group is based in Malvern, PA, and is the manager of VMIAX. Vanguard Materials Index Admiral made its debut in January of 2004, and since then, VMIAX has accumulated about $1.13 billion in assets, per the most up-to-date date available. The fund is currently managed by Kenny Narzikul who has been in charge of the fund since February of 2023.
Performance
Investors naturally seek funds with strong performance. This fund carries a 5-year annualized total return of 13.52%, and it sits 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 8.5%, which places it in the middle third during this time-frame.
It is important to note that the product's returns may not reflect all its expenses. Any fees not reflected would lower the returns. Total returns do not reflect the fund's [%] sale charge. If sales charges were included, total returns would have been lower.
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. Over the past three years, VMIAX's standard deviation comes in at 22.5%, compared to the category average of 22.67%. Looking at the past 5 years, the fund's standard deviation is 23.25% compared to the category average of 26.46%. 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 1.14, so it is likely going to be more 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. With a negative alpha of -2.84, managers in this portfolio find it difficult to pick securities that generate better-than-benchmark returns.
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, VMIAX is a no load fund. It has an expense ratio of 0.10% compared to the category average of 1.11%. From a cost perspective, VMIAX is actually cheaper than its peers.
Investors need to be aware that with this product, the minimum initial investment is $100,000; each subsequent investment needs to be at least $1.
Fees charged by investment advisors have not been taken into considiration. Returns would be less if those were included.
Bottom Line
For additional information on the Mid Cap Blend 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 VMIAX too 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.
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Is Vanguard Materials Index Admiral (VMIAX) a Strong Mutual Fund Pick Right Now?
Have you been searching for a Mid Cap Blend fund? You might want to begin with Vanguard Materials Index Admiral (VMIAX - Free Report) . VMIAX has no Zacks Mutual Fund Rank, but we have been able to look into other metrics like performance, volatility, and cost.
Objective
VMIAX is classified in the Mid Cap Blend category by Zacks, an area full of possibilities. Mid Cap Blend mutual funds usually feature a portfolio with stocks of various styles and sizes, allowing for diversification within a strategy that focuses on companies in the $2 billion to $10 billion market cap range. A mid-cap blend fund provides exposure to exciting growth potential, income opportunities, and value picks, while also attempting some level of stability through diversification.
History of Fund/Manager
Vanguard Group is based in Malvern, PA, and is the manager of VMIAX. Vanguard Materials Index Admiral made its debut in January of 2004, and since then, VMIAX has accumulated about $1.13 billion in assets, per the most up-to-date date available. The fund is currently managed by Kenny Narzikul who has been in charge of the fund since February of 2023.
Performance
Investors naturally seek funds with strong performance. This fund carries a 5-year annualized total return of 13.52%, and it sits 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 8.5%, which places it in the middle third during this time-frame.
It is important to note that the product's returns may not reflect all its expenses. Any fees not reflected would lower the returns. Total returns do not reflect the fund's [%] sale charge. If sales charges were included, total returns would have been lower.
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. Over the past three years, VMIAX's standard deviation comes in at 22.5%, compared to the category average of 22.67%. Looking at the past 5 years, the fund's standard deviation is 23.25% compared to the category average of 26.46%. 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 1.14, so it is likely going to be more 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. With a negative alpha of -2.84, managers in this portfolio find it difficult to pick securities that generate better-than-benchmark returns.
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, VMIAX is a no load fund. It has an expense ratio of 0.10% compared to the category average of 1.11%. From a cost perspective, VMIAX is actually cheaper than its peers.
Investors need to be aware that with this product, the minimum initial investment is $100,000; each subsequent investment needs to be at least $1.
Fees charged by investment advisors have not been taken into considiration. Returns would be less if those were included.
Bottom Line
For additional information on the Mid Cap Blend 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 VMIAX too 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.