Have you been searching for a Mid Cap Growth fund? You might want to begin with Vanguard Mid-Cap Growth Index Admiral (VMGMX Quick QuoteVMGMX - Free Report) . VMGMX has no Zacks Mutual Fund Rank, but we have been able to look into other metrics like performance, volatility, and cost.

Objective

We note that VMGMX is a Mid Cap Growth fund, and this area is also loaded with many different options. Companies are usually considered growth stocks when they consistently report notable sales and/or earnings growth. Thus, Mid Cap Growth funds pick stocks--usually companies with a market cap between $2 billion and $10 billion--that demonstrate extensive growth opportunities for investors compared to their peers.

History of Fund/Manager

Vanguard Group is based in Malvern, PA, and is the manager of VMGMX. Vanguard Mid-Cap Growth Index Admiral debuted in September of 2011. Since then, VMGMX has accumulated assets of about $14.86 billion, according to the most recently available information. The fund's current manager, Aaron Choi, has been in charge of the fund since August of 2023.

Performance

Of course, investors look for strong performance in funds. VMGMX has a 5-year annualized total return of 6.06%, and is in the top 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 15%, 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. VMGMX's standard deviation over the past three years is 16.83% compared to the category average of 14.52%. The fund's standard deviation over the past 5 years is 19.43% compared to the category average of 16.36%. 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 1.16, which means it is hypothetically more volatile than the market at large. 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. Over the past 5 years, the fund has a negative alpha of -7.36. This means that managers in this portfolio find it difficult to pick securities that generate better-than-benchmark returns.

Holdings

Exploring 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 primarily on equities that are traded in the United States.

This fund is currently holding about 75.18% in stocks, which have an average market capitalization of $48.68 billion. The fund has the heaviest exposure to the following market sectors:

• Technology
• Retail Trade
• Industrial Cyclical

With turnover at about 17%, this fund makes fewer trades than its comparable peers.

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, VMGMX is a no load fund. It has an expense ratio of 0.07% compared to the category average of 0.99%. From a cost perspective, VMGMX is actually cheaper than its peers.

Investors need to be aware that with this product, the minimum initial investment is $3,000; each subsequent investment needs to be at least $1.

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

Bottom Line

For additional information on the Mid Cap Growth area of the mutual fund world, make sure to check out www.zacks.com/funds/mutual-funds. There, you can see more about the ranking process, and dive even deeper into VMGMX too 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.