Have you been searching for an Index fund? You might want to begin with Vanguard Small-Cap Index Investor (NAESX Quick QuoteNAESX - Free Report) . While this fund is not tracked by the Zacks Mutual Fund Rank, we were able to examine other factors like performance, volatility, and cost.

History of Fund/Manager

Vanguard Group is based in Malvern, PA, and is the manager of NAESX. Since Vanguard Small-Cap Index Investor made its debut in March of 1975, NAESX has garnered more than $294.59 million in assets. The fund's current manager, William Coleman, has been in charge of the fund since April of 2016.

Performance

Of course, investors look for strong performance in funds. NAESX has a 5-year annualized total return of 15.48% and is in the middle third among its category peers. But if you are looking for a shorter time frame, it is also worth looking at its 3-year annualized total return of 2.89%, 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 NAESX over the past three years is 21.98% compared to the category average of 16.03%. The standard deviation of the fund over the past 5 years is 20.99% compared to the category average of 17.25%. This makes the fund more volatile than its peers over the past half-decade.

Risk Factors

With a 5-year beta of 1.1, the fund is likely to be more volatile than the market average. 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. NAESX's 5-year performance has produced a negative alpha of -3.44, 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 principally on equities that are traded in the United States.

As of the last filing date, the mutual fund has 78.92% of its assets in stocks, which have an average market capitalization of $9.05 billion. Turnover is about 13%, so those in charge of the fund make fewer trades than comparable funds.

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, NAESX is a no load fund. It has an expense ratio of 0.17% compared to the category average of 0.96%. Looking at the fund from a cost perspective, NAESX is actually cheaper than its peers.

Investors should also note that the minimum initial investment for the product is $0 and that 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

Want even more information about NAESX? Then go over to Zacks.com and check out our mutual fund comparison tool, and all of the other great features that we have to help you with your mutual fund analysis for additional information. And don't forget, Zacks has all of your needs covered on the equity side too! Make sure to check out Zacks.com for more information on our screening capabilities, Rank, and all our articles as well.