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Is Vanguard Growth Index Admiral (VIGAX) a Strong Mutual Fund Pick Right Now?
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On the lookout for a Large Cap Growth fund? Starting with Vanguard Growth Index Admiral (VIGAX - Free Report) is one possibility. VIGAX has a Zacks Mutual Fund Rank of 1 (Strong Buy), which is based on nine forecasting factors like size, cost, and past performance.
Objective
VIGAX is part of the Large Cap Growth section, and this segment boasts an array of other possible options. Large Cap Growth mutual funds purchase stakes in numerous large U.S. companies that are expected to develop and grow at a faster rate than other large-cap stocks. Companies are usually considered to be large-cap if their market capitalization is over $10 billion.
History of Fund/Manager
VIGAX finds itself in the Vanguard Group family, based out of Malvern, PA. Since Vanguard Growth Index Admiral made its debut in November of 2000, VIGAX has garnered more than $28.18 billion in assets. The fund's current manager, Gerard C. O'Reilly, has been in charge of the fund since November of 2000.
Performance
Of course, investors look for strong performance in funds. This fund has delivered a 5-year annualized total return of 11.63%, and is 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 15.05%, 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. VIGAX's standard deviation over the past three years is 12.61% compared to the category average of 10.41%. The fund's standard deviation over the past 5 years is 12.64% compared to the category average of 10.23%. This makes the fund more volatile than its peers over the past half-decade.
Risk Factors
One cannot ignore the volatility of this segment, however, as it is always important for investors to remember the downside to any potential investment. In VIGAX's case, the fund lost 47.12% in the most recent bear market and outperformed its peer group by 1.72%. This means that the fund could possibly be a better choice than its peers during a down market environment.
Nevertheless, investors should also note that the fund has a 5-year beta of 1.08, 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. With a negative alpha of -0.05, managers in this portfolio find it difficult to pick securities that generate better-than-benchmark returns.
Holdings
Investigating 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.
The mutual fund currently has 90.01% of its holdings in stocks, which have an average market capitalization of $287.65 billion. The fund has the heaviest exposure to the following market sectors:
Technology
Retail Trade
Non-Durable
This fund's turnover is about 20%, so the fund managers are making fewer trades than the average comparable fund.
Expenses
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, VIGAX is a no load fund. It has an expense ratio of 0.05% compared to the category average of 1.05%. Looking at the fund from a cost perspective, VIGAX is actually cheaper than its peers.
Investors should also note that the minimum initial investment for the product is $3,000 and that each subsequent investment needs to be at $1.
Bottom Line
Overall, Vanguard Growth Index Admiral ( VIGAX ) has a high Zacks Mutual Fund rank, similar performance, average downside risk, and lower fees compared to its peers.
This could just be the start of your research on VIGAXin the Large Cap Growth category. Consider going to www.zacks.com/funds/mutual-funds for additional information about this fund, and all the others that we rank 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.
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Is Vanguard Growth Index Admiral (VIGAX) a Strong Mutual Fund Pick Right Now?
On the lookout for a Large Cap Growth fund? Starting with Vanguard Growth Index Admiral (VIGAX - Free Report) is one possibility. VIGAX has a Zacks Mutual Fund Rank of 1 (Strong Buy), which is based on nine forecasting factors like size, cost, and past performance.
Objective
VIGAX is part of the Large Cap Growth section, and this segment boasts an array of other possible options. Large Cap Growth mutual funds purchase stakes in numerous large U.S. companies that are expected to develop and grow at a faster rate than other large-cap stocks. Companies are usually considered to be large-cap if their market capitalization is over $10 billion.
History of Fund/Manager
VIGAX finds itself in the Vanguard Group family, based out of Malvern, PA. Since Vanguard Growth Index Admiral made its debut in November of 2000, VIGAX has garnered more than $28.18 billion in assets. The fund's current manager, Gerard C. O'Reilly, has been in charge of the fund since November of 2000.
Performance
Of course, investors look for strong performance in funds. This fund has delivered a 5-year annualized total return of 11.63%, and is 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 15.05%, 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. VIGAX's standard deviation over the past three years is 12.61% compared to the category average of 10.41%. The fund's standard deviation over the past 5 years is 12.64% compared to the category average of 10.23%. This makes the fund more volatile than its peers over the past half-decade.
Risk Factors
One cannot ignore the volatility of this segment, however, as it is always important for investors to remember the downside to any potential investment. In VIGAX's case, the fund lost 47.12% in the most recent bear market and outperformed its peer group by 1.72%. This means that the fund could possibly be a better choice than its peers during a down market environment.
Nevertheless, investors should also note that the fund has a 5-year beta of 1.08, 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. With a negative alpha of -0.05, managers in this portfolio find it difficult to pick securities that generate better-than-benchmark returns.
Holdings
Investigating 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.
The mutual fund currently has 90.01% of its holdings in stocks, which have an average market capitalization of $287.65 billion. The fund has the heaviest exposure to the following market sectors:
- Technology
- Retail Trade
- Non-Durable
This fund's turnover is about 20%, so the fund managers are making fewer trades than the average comparable fund.Expenses
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, VIGAX is a no load fund. It has an expense ratio of 0.05% compared to the category average of 1.05%. Looking at the fund from a cost perspective, VIGAX is actually cheaper than its peers.
Investors should also note that the minimum initial investment for the product is $3,000 and that each subsequent investment needs to be at $1.
Bottom Line
Overall, Vanguard Growth Index Admiral ( VIGAX ) has a high Zacks Mutual Fund rank, similar performance, average downside risk, and lower fees compared to its peers.
This could just be the start of your research on VIGAXin the Large Cap Growth category. Consider going to www.zacks.com/funds/mutual-funds for additional information about this fund, and all the others that we rank 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.