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Is Vanguard Emerging Markets Stock Index Investor (VEIEX) a Strong Mutual Fund Pick Right Now?
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Having trouble finding a Non US - Equity fund? Vanguard Emerging Markets Stock Index Investor (VEIEX - Free Report) is a potential starting point. VEIEX holds a Zacks Mutual Fund Rank of 2 (Buy), which is based on various forecasting factors like size, cost, and past performance.
Objective
We classify VEIEX in the Non US - Equity category, which is an area rife with potential choices. Investing in companies outside the United States is how Non US - Equity funds set themselves apart, since global funds tend to keep a good portion of their portfolio stateside. Many of these funds like to allocate across emerging and developed markets, and will often focus on all cap levels.
History of Fund/Manager
VEIEX is a part of the Vanguard Group family of funds, a company based out of Malvern, PA. Vanguard Emerging Markets Stock Index Investor debuted in May of 1994. Since then, VEIEX has accumulated assets of about $69.23 million, according to the most recently available information. The fund's current manager is a team of investment professionals.
Performance
Obviously, what investors are looking for in these funds is strong performance relative to their peers. This fund carries a 5-year annualized total return of 5.8%, 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 9.93%, 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. The standard deviation of VEIEX over the past three years is 15.7% compared to the category average of 14.63%. The fund's standard deviation over the past 5 years is 14.32% compared to the category average of 14.2%. This makes the fund more volatile than its peers over the past half-decade.
Risk Factors
With a 5-year beta of 0.52, the fund is likely to be less 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. VEIEX's 5-year performance has produced a negative alpha of -3.03, which means managers in this portfolio find it difficult to pick securities that generate better-than-benchmark returns.
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, VEIEX is a no load fund. It has an expense ratio of 0.29% compared to the category average of 0.98%. So, VEIEX 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 consideration. Returns would be less if those were included.
Bottom Line
Overall, Vanguard Emerging Markets Stock Index Investor ( VEIEX ) has a high Zacks Mutual Fund rank, and in conjunction with its comparatively similar performance, average downside risk, and lower fees, Vanguard Emerging Markets Stock Index Investor ( VEIEX ) looks like a good potential choice for investors right now.
Want even more information about VEIEX? 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. 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 Emerging Markets Stock Index Investor (VEIEX) a Strong Mutual Fund Pick Right Now?
Having trouble finding a Non US - Equity fund? Vanguard Emerging Markets Stock Index Investor (VEIEX - Free Report) is a potential starting point. VEIEX holds a Zacks Mutual Fund Rank of 2 (Buy), which is based on various forecasting factors like size, cost, and past performance.
Objective
We classify VEIEX in the Non US - Equity category, which is an area rife with potential choices. Investing in companies outside the United States is how Non US - Equity funds set themselves apart, since global funds tend to keep a good portion of their portfolio stateside. Many of these funds like to allocate across emerging and developed markets, and will often focus on all cap levels.
History of Fund/Manager
VEIEX is a part of the Vanguard Group family of funds, a company based out of Malvern, PA. Vanguard Emerging Markets Stock Index Investor debuted in May of 1994. Since then, VEIEX has accumulated assets of about $69.23 million, according to the most recently available information. The fund's current manager is a team of investment professionals.
Performance
Obviously, what investors are looking for in these funds is strong performance relative to their peers. This fund carries a 5-year annualized total return of 5.8%, 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 9.93%, 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. The standard deviation of VEIEX over the past three years is 15.7% compared to the category average of 14.63%. The fund's standard deviation over the past 5 years is 14.32% compared to the category average of 14.2%. This makes the fund more volatile than its peers over the past half-decade.
Risk Factors
With a 5-year beta of 0.52, the fund is likely to be less 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. VEIEX's 5-year performance has produced a negative alpha of -3.03, which means managers in this portfolio find it difficult to pick securities that generate better-than-benchmark returns.
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, VEIEX is a no load fund. It has an expense ratio of 0.29% compared to the category average of 0.98%. So, VEIEX 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 consideration. Returns would be less if those were included.
Bottom Line
Overall, Vanguard Emerging Markets Stock Index Investor ( VEIEX ) has a high Zacks Mutual Fund rank, and in conjunction with its comparatively similar performance, average downside risk, and lower fees, Vanguard Emerging Markets Stock Index Investor ( VEIEX ) looks like a good potential choice for investors right now.
Want even more information about VEIEX? 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. 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.