If investors are looking at the Mid Cap Value fund category, Vanguard Selected Value Fund (
VASVX Quick Quote VASVX - Free Report) could be a potential option. VASVX has a Zacks Mutual Fund Rank of 1 (Strong Buy), which is based on nine forecasting factors like size, cost, and past performance. Objective
VASVX is one of many Mid Cap Value mutual funds to choose from. Mid Cap Value funds usually invest in companies with a stock market valuation between $2 billion and $10 billion; these medium-sized firms possess strong value and income opportunities for investors.
History of Fund/Manager
Vanguard Group is based in Malvern, PA, and is the manager of VASVX. Vanguard Selected Value Fund made its debut in February of 1996, and since then, VASVX has accumulated about $11.25 billion in assets, per the most up-to-date date available. The fund is currently managed by a team of investment professionals.
Investors naturally seek funds with strong performance. This fund carries a 5-year annualized total return of 13.01%, 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 8.79%, which places it in the top third during this time-frame.
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 11.55%, the standard deviation of VASVX over the past three years is 11.63%. Looking at the past 5 years, the fund's standard deviation is 11% compared to the category average of 11.35%. This makes the fund less volatile than its peers over the past half-decade.
One cannot ignore the volatility of this segment, however, as it is always important for investors to remember the downside to any potential investment. VASVX lost 48.06% in the most recent bear market and outperformed its peer group by 3.29%. This could mean that the fund is a better choice than comparable funds during a bear market.
Nevertheless, investors should also note that the fund has a 5-year beta of 1.01, which means it is hypothetically as volatile as the market at large. 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. VASVX's 5-year performance has produced a negative alpha of -1.16, which means managers in this portfolio find it difficult to pick securities that generate better-than-benchmark returns.
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, VASVX is a no load fund. It has an expense ratio of 0.38% compared to the category average of 1.19%. So, VASVX is actually cheaper than its peers from a cost perspective.
This fund requires a minimum initial investment of $3,000, and each subsequent investment should be at least $1.
Overall, Vanguard Selected Value Fund has a high Zacks Mutual Fund rank, and in conjunction with its comparatively strong performance, average downside risk, and lower fees, Vanguard Selected Value Fund looks like a good potential choice for investors right now.
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