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There are many choices in the Mutual Fund Equity report category, but where should you start your research? Well, one fund worth checking out is Vanguard Mid-Cap Growth Index Admiral (VMGMX). VMGMX doesn’t have a Zacks Mutual Fund Rank, but we are able to look at other metrics such as performance, volatility and expense.
Fund/manager history
VMGMX finds itself within the Vanguard Group family based out of Malvern, PA. The Vanguard Mid-Cap Growth Index Admiral was first launched in September 2011 and since then, VMGMMMMMMMMMMMMX has accumulated approximately $9.76 billion in assets. Donald Butler is the current manager of the fund and has held that role since February 2013.
Performance
Of course, investors want strong performance in the money. This fund generates a 5-year annualized total return of 9.22% and ranks in the middle third of its category peers. But if you’re looking for a shorter time frame, it’s also worth looking at its 3-year annualized total return of 7.92%, which puts it in the middle third of that time frame.
When looking at a fund’s performance, it’s also important to note the standard deviation of returns. The lower the standard deviation, the lower the volatility of the fund’s experiences. VMGMX’s standard deviation over the past three years is 24.66% compared to the category average of 20.96%. Over the past 5 years, the fund’s standard deviation is 21.47% versus the category average of 18.47%. This makes the fund more volatile than its peers over the past half-decade.
Risk factors
Investors should not forget beta, an important way to measure a mutual fund’s risk relative to the overall market. VMGMX has a 5-year beta of 1.09, which means it may be more volatile than the market average. Because alpha represents a portfolio’s performance on a risk-adjusted basis relative to its benchmark, which in this case is the S&P 500, one should pay attention to this metric as well. With a negative alpha of -1.98, managers in this portfolio would be hard-pressed to pick stocks that generate better returns than the benchmark.
Holdings
Investigating mutual fund equity holdings is also a valuable exercise. This can show us how the manager applies the described method and also if there are any inherent biases in their approach. For this particular fund, the focus is mostly on stocks traded in the United States.
The mutual fund is currently 88.48% in stocks and has an average market cap of $24.02 billion. The return is 24%, which means that, on average, the fund trades less than the average comparable fund.
expenses
As expenses become increasingly important for mutual fund investments, it is key for investors to keep a close eye on expense-related metrics. Competition is heating up in this space, and a low-cost product can outperform its equivalent, 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 0.78%. Therefore, VMGMX is cheaper than its peers in terms of cost.
Investors should note that the minimum initial investment in this product is $3,000. Each subsequent investment must be at least $1.
at last
Want more information about VMGMX? Then head over to Zacks.com and check out our mutual fund comparison tool and other great features we have to help you with your mutual fund analysis for more information. And don’t forget, Zacks has all your equity needs covered too! Be sure to check out Zacks.com for more information on our screening capabilities, rankings, and all of our articles.
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