We use cookies to understand how you use our site and to improve your experience. This includes personalizing content and advertising. To learn more, click here. By continuing to use our site, you accept our use of cookies, revised Privacy Policy and Terms of Service.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
Is Vanguard Consumer Staples Index Admiral (VCSAX) a Strong Mutual Fund Pick Right Now?
Read MoreHide Full Article
If investors are looking at the Large Cap Blend fund category, Vanguard Consumer Staples Index Admiral (VCSAX - Free Report) could be a potential option. VCSAX holds a Zacks Mutual Fund Rank of 2 (Buy), which is based on nine forecasting factors like size, cost, and past performance.
Objective
VCSAX is part of the Large Cap Blend section, an area that boasts an array of many possible options. Large Cap Blend mutual funds most often invest in firms with a market capitalization of $10 billion or more. By investing in bigger companies, these funds offer more stability, and are often well-suited for investors with a " buy and hold " mindset. Blended funds mix large, established companies into their holdings, which gives investors exposure to both value and growth at the same time.
History of Fund/Manager
VCSAX finds itself in the Vanguard Group family, based out of Malvern, PA. Vanguard Consumer Staples Index Admiral made its debut in January of 2004, and since then, VCSAX has accumulated about $662.48 million in assets, per the most up-to-date date available. Michael A. Johnson is the fund's current manager and has held that role since December of 2010.
Performance
Investors naturally seek funds with strong performance. This fund has delivered a 5-year annualized total return of 8.24%, and is 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 6.28%, which places it in the bottom 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. VCSAX's standard deviation over the past three years is 11.13% compared to the category average of 11.21%. The standard deviation of the fund over the past 5 years is 10.77% compared to the category average of 11.63%. This makes the fund less volatile than its peers over the past half-decade.
Risk Factors
It's always important to be aware of the downsides to any future investment, so one should not discount the risks that come with this segment. VCSAX lost 27.95% in the most recent bear market and outperformed its peer group by 21.42%. This means that the fund could possibly be a better choice than its peers during a down market environment.
Investors should not forget about beta, an important way to measure a mutual fund's risk compared to the market as a whole. VCSAX has a 5-year beta of 0.63, which means it is likely to be less volatile than the market average. 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 positive alpha of 0.87. This means that managers in this portfolio are skilled in picking securities that generate better-than-benchmark returns.
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, VCSAX is a no load fund. It has an expense ratio of 0.10% compared to the category average of 0.96%. VCSAX is actually cheaper than its peers when you consider factors like cost.
This fund requires a minimum initial investment of $100,000, and each subsequent investment should be at least $1.
Bottom Line
Overall, Vanguard Consumer Staples Index Admiral ( VCSAX ) 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 VCSAXin the Large Cap Blend 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. For analysis of the rest of your portfolio, make sure to visit Zacks.com for our full suite of tools which will help you investigate all of your stocks and funds in one place.
See More Zacks Research for These Tickers
Normally $25 each - click below to receive one report FREE:
Image: Bigstock
Is Vanguard Consumer Staples Index Admiral (VCSAX) a Strong Mutual Fund Pick Right Now?
If investors are looking at the Large Cap Blend fund category, Vanguard Consumer Staples Index Admiral (VCSAX - Free Report) could be a potential option. VCSAX holds a Zacks Mutual Fund Rank of 2 (Buy), which is based on nine forecasting factors like size, cost, and past performance.
Objective
VCSAX is part of the Large Cap Blend section, an area that boasts an array of many possible options. Large Cap Blend mutual funds most often invest in firms with a market capitalization of $10 billion or more. By investing in bigger companies, these funds offer more stability, and are often well-suited for investors with a " buy and hold " mindset. Blended funds mix large, established companies into their holdings, which gives investors exposure to both value and growth at the same time.
History of Fund/Manager
VCSAX finds itself in the Vanguard Group family, based out of Malvern, PA. Vanguard Consumer Staples Index Admiral made its debut in January of 2004, and since then, VCSAX has accumulated about $662.48 million in assets, per the most up-to-date date available. Michael A. Johnson is the fund's current manager and has held that role since December of 2010.
Performance
Investors naturally seek funds with strong performance. This fund has delivered a 5-year annualized total return of 8.24%, and is 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 6.28%, which places it in the bottom 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. VCSAX's standard deviation over the past three years is 11.13% compared to the category average of 11.21%. The standard deviation of the fund over the past 5 years is 10.77% compared to the category average of 11.63%. This makes the fund less volatile than its peers over the past half-decade.
Risk Factors
It's always important to be aware of the downsides to any future investment, so one should not discount the risks that come with this segment. VCSAX lost 27.95% in the most recent bear market and outperformed its peer group by 21.42%. This means that the fund could possibly be a better choice than its peers during a down market environment.
Investors should not forget about beta, an important way to measure a mutual fund's risk compared to the market as a whole. VCSAX has a 5-year beta of 0.63, which means it is likely to be less volatile than the market average. 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 positive alpha of 0.87. This means that managers in this portfolio are skilled in picking securities that generate better-than-benchmark returns.
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, VCSAX is a no load fund. It has an expense ratio of 0.10% compared to the category average of 0.96%. VCSAX is actually cheaper than its peers when you consider factors like cost.
This fund requires a minimum initial investment of $100,000, and each subsequent investment should be at least $1.
Bottom Line
Overall, Vanguard Consumer Staples Index Admiral ( VCSAX ) 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 VCSAXin the Large Cap Blend 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. For analysis of the rest of your portfolio, make sure to visit Zacks.com for our full suite of tools which will help you investigate all of your stocks and funds in one place.