If you have been looking for Large Cap Growth funds, a place to start could be Vanguard Tax-Managed Cap Appreciation Administrative (
VTCLX Quick Quote VTCLX - Free Report) . VTCLX bears a Zacks Mutual Fund Rank of 1 (Strong Buy), which is based on nine forecasting factors like size, cost, and past performance. Objective
VTCLX is classified in the Large Cap Growth segment by Zacks, an area full of possibilities. Companies are usually considered to be large-cap if their stock market valuation is more than $10 billion. Large Cap Growth mutual funds invest in many large U.S. firms that are projected to grow at a faster rate than their large-cap peers.
History of Fund/Manager
Vanguard Group is based in Malvern, PA, and is the manager of VTCLX. Vanguard Tax-Managed Cap Appreciation Administrative made its debut in November of 2001, and since then, VTCLX has accumulated about $8.19 billion in assets, per the most up-to-date date available. William A. Coleman is the fund's current manager and has held that role since April of 2016.
Of course, investors look for strong performance in funds. VTCLX has a 5-year annualized total return of 13.2% and it sits 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 10.65%, which places it in the middle 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. VTCLX's standard deviation over the past three years is 10.36% compared to the category average of 10.27%. Over the past 5 years, the standard deviation of the fund is 10.01% compared to the category average of 10.01%. This makes the fund more 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. VTCLX lost 50.73% in the most recent bear market and underperformed comparable funds by 1.74%. This could mean that the fund is a worse choice than comparable funds during a bear market.
Even still, the fund has a 5-year beta of 1.01, so investors should note that it is hypothetically as volatile as 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. VTCLX's 5-year performance has produced a positive alpha of 0.1, which means managers in this portfolio are skilled in picking securities that generate better-than-benchmark returns.
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 mostly on equities that are traded in the United States.
Currently, this mutual fund is holding 99.03% stock in stocks, with an average market capitalization of $171.76 billion. The fund has the heaviest exposure to the following market sectors:
Technology Finance Non-Durable
Turnover is about 7%, so those in charge of the fund make fewer trades than its comparable peers.
As competition heats up in the mutual fund market, costs become increasingly important. Compared to its otherwise identical counterpart, a low-cost product will be an outperformer, all other things being equal. Thus, taking a closer look at cost-related metrics is vital for investors. In terms of fees, VTCLX is a no load fund. It has an expense ratio of 0.09% compared to the category average of 1.11%. From a cost perspective, VTCLX is actually cheaper than its peers.
While the minimum initial investment for the product is $10,000, investors should also note that each subsequent investment needs to be at least $1.
Overall, Vanguard Tax-Managed Cap Appreciation Administrative has a high Zacks Mutual Fund rank, and in conjunction with its comparatively similar performance, average downside risk, and lower fees, this fund looks like a great potential choice for investors right now.
Your research on the Large Cap Growth 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. If you are more of a stock investor, make sure to also check out our Zacks Rank, and our full suite of tools we have available for novice and professional investors alike.