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Is Vanguard FTSE All-World ex-US Index Admiral (VFWAX) a Strong Mutual Fund Pick Right Now?
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Investors in search of an Index fund might want to consider looking at Vanguard FTSE All-World ex-US Index Admiral (VFWAX - Free Report) . The fund does not have a Zacks Mutual Fund Rank, though we have been able to explore other metrics like performance, volatility, and cost.
History of Fund/Manager
VFWAX finds itself in the Vanguard Group family, based out of Malvern, PA. The Vanguard FTSE All-World ex-US Index Admiral made its debut in September of 2011 and VFWAX has managed to accumulate roughly $6.14 billion in assets, as of the most recently available information. Justin E. Hales is the fund's current manager and has held that role since February of 2016.
Performance
Of course, investors look for strong performance in funds. This fund has delivered a 5-year annualized total return of 1.56%, and it sits in the bottom 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 6.78%, 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. VFWAX's standard deviation over the past three years is 11.12% compared to the category average of 8.55%. Over the past 5 years, the standard deviation of the fund is 12.02% compared to the category average of 9.15%. This makes the fund more volatile than its peers over the past half-decade.
Risk Factors
Investors cannot discount the risks to this segment though, as it is always important to remember the downside for any potential investment.
Even still, the fund has a 5-year beta of 0.84, so investors should note that it is hypothetically less 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. VFWAX has generated a negative alpha over the past five years of -6, demonstrating that managers in this portfolio find it difficult to pick securities that generate better-than-benchmark returns.
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, VFWAX is a no load fund. It has an expense ratio of 0.11% compared to the category average of 0.76%. Looking at the fund from a cost perspective, VFWAX 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.
Bottom Line
Want even more information about VFWAX? Then go over to Zacks.com and check out our mutual fund comparison tool, and all of the other great features that we have to help you with your mutual fund analysis 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.
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Is Vanguard FTSE All-World ex-US Index Admiral (VFWAX) a Strong Mutual Fund Pick Right Now?
Investors in search of an Index fund might want to consider looking at Vanguard FTSE All-World ex-US Index Admiral (VFWAX - Free Report) . The fund does not have a Zacks Mutual Fund Rank, though we have been able to explore other metrics like performance, volatility, and cost.
History of Fund/Manager
VFWAX finds itself in the Vanguard Group family, based out of Malvern, PA. The Vanguard FTSE All-World ex-US Index Admiral made its debut in September of 2011 and VFWAX has managed to accumulate roughly $6.14 billion in assets, as of the most recently available information. Justin E. Hales is the fund's current manager and has held that role since February of 2016.
Performance
Of course, investors look for strong performance in funds. This fund has delivered a 5-year annualized total return of 1.56%, and it sits in the bottom 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 6.78%, 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. VFWAX's standard deviation over the past three years is 11.12% compared to the category average of 8.55%. Over the past 5 years, the standard deviation of the fund is 12.02% compared to the category average of 9.15%. This makes the fund more volatile than its peers over the past half-decade.
Risk Factors
Investors cannot discount the risks to this segment though, as it is always important to remember the downside for any potential investment.
Even still, the fund has a 5-year beta of 0.84, so investors should note that it is hypothetically less 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. VFWAX has generated a negative alpha over the past five years of -6, demonstrating that managers in this portfolio find it difficult to pick securities that generate better-than-benchmark returns.
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, VFWAX is a no load fund. It has an expense ratio of 0.11% compared to the category average of 0.76%. Looking at the fund from a cost perspective, VFWAX 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.
Bottom Line
Want even more information about VFWAX? Then go over to Zacks.com and check out our mutual fund comparison tool, and all of the other great features that we have to help you with your mutual fund analysis 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.