Any investors hoping to find a Mid Cap Blend fund could think about starting with Vanguard Strategic Equity Fund (VSEQX Quick QuoteVSEQX - Free Report) . VSEQX has a Zacks Mutual Fund Rank of 1 (Strong Buy), which is based on various forecasting factors like size, cost, and past performance.

Objective

The world of Mid Cap Blend mutual funds is an area filled with options, such as VSEQX. Mid Cap Blend funds expose investors to value picks, income opportunities, and exciting growth potential, but also gives some stability; these funds usually seek a stock portfolio of various size and style, which allows for diversification when the focus is on companies with market capitalization in the range of $2 billion to $10 billion.

History of Fund/Manager

Vanguard Group is based in Malvern, PA, and is the manager of VSEQX. Vanguard Strategic Equity Fund made its debut in August of 1995, and since then, VSEQX has accumulated about $9.51 billion in assets, per the most up-to-date date available. The fund's current manager, Cesar Orosco, has been in charge of the fund since February of 2021.

Performance

Investors naturally seek funds with strong performance. This fund carries a 5-year annualized total return of 13.62%, 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 10.96%, 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. Compared to the category average of 19.97%, the standard deviation of VSEQX over the past three years is 21.33%. The fund's standard deviation over the past 5 years is 23.32% compared to the category average of 21.54%. This makes the fund more volatile than its peers over the past half-decade.

Risk Factors

With a 5-year beta of 1.16, the fund is likely to be more volatile than the market average. Because alpha represents a portfolio's performance on a risk-adjusted basis relative to a benchmark, which is the S&P 500 in this case, one should pay attention to this metric as well. With a negative alpha of -2.32, 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 mostly on equities that are traded in the United States.

The mutual fund currently has 87.75% of its holdings in stocks, with an average market capitalization of $12.24 billion. The fund has the heaviest exposure to the following market sectors:

• Finance
• Technology
• Industrial Cyclical

Turnover is 63%, which means, on average, the fund makes more traders than comparable funds in a given year.

Expenses

Costs are increasingly important for mutual fund investing, and particularly as competition heats up in this market. And all things being equal, a lower cost product will outperform its otherwise identical counterpart, so taking a closer look at these metrics is key for investors. In terms of fees, VSEQX is a no load fund. It has an expense ratio of 0.17% compared to the category average of 0.91%. VSEQX 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

Fees charged by investment advisors have not been taken into considiration. Returns would be less if those were included.

Bottom Line

Overall, Vanguard Strategic Equity Fund ( VSEQX ) has a high Zacks Mutual Fund rank, and in conjunction with its comparatively strong performance, average downside risk, and lower fees, Vanguard Strategic Equity Fund ( VSEQX ) looks like a good potential choice for investors right now.

Your research on the Mid Cap Blend segment doesn't have to stop here. You can check out all the great mutual fund tools we have to offer by going to www.zacks.com/funds/mutual-funds to see the additional features we offer as well for additional information. Want to learn even more? We have a full suite of tools on stocks that you can use to find the best choices for your portfolio too, no matter what kind of investor you are.