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Is Vanguard Growth Index Investor (VIGRX) a Strong Mutual Fund Pick Right Now?
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Investors in search of a Large Cap Growth fund might want to consider looking at Vanguard Growth Index Investor (VIGRX - 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.
Objective
We classify VIGRX in the Large Cap Growth category, an area rife with potential choices. Large Cap Growth funds invest in many large U.S. companies that are expected to grow much faster compared to other large-cap stocks. To be considered large-cap, companies must have a market cap over $10 billion.
History of Fund/Manager
VIGRX is a part of the Vanguard Group family of funds, a company based out of Malvern, PA. Vanguard Growth Index Investor made its debut in November of 1992, and since then, VIGRX has accumulated about $416.97 million in assets, per the most up-to-date date available. The fund's current manager, Gerard C. O'Reilly, has been in charge of the fund since December of 1994.
Performance
Of course, investors look for strong performance in funds. This fund in particular has delivered a 5-year annualized total return of 17.44%, and is in the top 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 8.7%, which places it in the top 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. The standard deviation of VIGRX over the past three years is 21.99% compared to the category average of 16.48%. The fund's standard deviation over the past 5 years is 21.44% compared to the category average of 17.07%. 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 1.11, so it is likely going to be 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. VIGRX has generated a positive alpha over the past five years of 1.93, demonstrating that managers in this portfolio are skilled in picking 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 93.68% in stocks, with an average market capitalization of $521.29 billion. The fund has the heaviest exposure to the following market sectors:
Technology
Retail Trade
Turnover is 6%, which means, on average, the fund makes fewer trades than the average comparable fund.
Expenses
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, VIGRX is a no load fund. It has an expense ratio of 0.17% compared to the category average of 0.95%. So, VIGRX is actually cheaper than its peers from a cost perspective.
Investors need to be aware that with this product, the minimum initial investment is $0; each subsequent investment has no minimum amount.
Fees charged by investment advisors have not been taken into considiration. Returns would be less if those were included.
Bottom Line
Don't stop here for your research on Large Cap Growth funds. We also have plenty more on our site in order to help you find the best possible fund for your portfolio. Make sure to check out www.zacks.com/funds/mutual-funds for more information about the world of funds, and feel free to compare VIGRX to its peers 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 Vanguard Growth Index Investor (VIGRX) a Strong Mutual Fund Pick Right Now?
Investors in search of a Large Cap Growth fund might want to consider looking at Vanguard Growth Index Investor (VIGRX - 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.
Objective
We classify VIGRX in the Large Cap Growth category, an area rife with potential choices. Large Cap Growth funds invest in many large U.S. companies that are expected to grow much faster compared to other large-cap stocks. To be considered large-cap, companies must have a market cap over $10 billion.
History of Fund/Manager
VIGRX is a part of the Vanguard Group family of funds, a company based out of Malvern, PA. Vanguard Growth Index Investor made its debut in November of 1992, and since then, VIGRX has accumulated about $416.97 million in assets, per the most up-to-date date available. The fund's current manager, Gerard C. O'Reilly, has been in charge of the fund since December of 1994.
Performance
Of course, investors look for strong performance in funds. This fund in particular has delivered a 5-year annualized total return of 17.44%, and is in the top 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 8.7%, which places it in the top 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. The standard deviation of VIGRX over the past three years is 21.99% compared to the category average of 16.48%. The fund's standard deviation over the past 5 years is 21.44% compared to the category average of 17.07%. 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 1.11, so it is likely going to be 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. VIGRX has generated a positive alpha over the past five years of 1.93, demonstrating that managers in this portfolio are skilled in picking 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 93.68% in stocks, with an average market capitalization of $521.29 billion. The fund has the heaviest exposure to the following market sectors:
- Technology
- Retail Trade
Turnover is 6%, which means, on average, the fund makes fewer trades than the average comparable fund.Expenses
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, VIGRX is a no load fund. It has an expense ratio of 0.17% compared to the category average of 0.95%. So, VIGRX is actually cheaper than its peers from a cost perspective.
Investors need to be aware that with this product, the minimum initial investment is $0; each subsequent investment has no minimum amount.
Fees charged by investment advisors have not been taken into considiration. Returns would be less if those were included.
Bottom Line
Don't stop here for your research on Large Cap Growth funds. We also have plenty more on our site in order to help you find the best possible fund for your portfolio. Make sure to check out www.zacks.com/funds/mutual-funds for more information about the world of funds, and feel free to compare VIGRX to its peers 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.