Is Vanguard Small-Cap Growth Index Fund (VISGX) a Strong Mutual Fund Pick Right Now?
Looking for an Index fund? You may want to consider Vanguard Small-Cap Growth Index Fund (VISGX) as a possible option. 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
VISGX is a part of the Vanguard Group family of funds, a company based out of Malvern, PA. Vanguard Small-Cap Growth Index Fund debuted in May of 1998. Since then, VISGX has accumulated assets of about $73.94 million, according to the most recently available information. The fund's current manager, Gerard O'Reilly, has been in charge of the fund since September of 2011.
Performance
Investors naturally seek funds with strong performance. VISGX has a 5-year annualized total return of 8.05% 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 -2.84%, which places it in the middle third during this time-frame.
It is important to note that the product's returns may not reflect all its expenses. Any fees not reflected would lower the returns. Total returns do not reflect the fund's [%] sale charge. If sales charges were included, total returns would have been lower.
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. Compared to the category average of 16.77%, the standard deviation of VISGX over the past three years is 22.39%. Over the past 5 years, the standard deviation of the fund is 23.35% compared to the category average of 18.07%. This makes the fund more volatile than its peers over the past half-decade.
Risk Factors
Investors should not forget about beta, an important way to measure a mutual fund's risk compared to the market as a whole. VISGX has a 5-year beta of 1.15, which means it is likely to be more volatile than the market average. Alpha is an additional metric to take into consideration, since it represents a portfolio's performance on a risk-adjusted basis relative to a benchmark, which in this case, is the S&P 500. VISGX has generated a negative alpha over the past five years of -7.7, demonstrating that 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 largely on equities that are traded in the United States.
This fund is currently holding about 91.1% in stocks, with an average market capitalization of $8.12 billion. The fund has the heaviest exposure to the following market sectors:
Technology
Industrial Cyclical
Health
Other
This fund's turnover is about 19%, so the fund managers are making fewer trades than comparable funds.
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, VISGX is a no load fund. It has an expense ratio of 0.19% compared to the category average of 1.03%. VISGX is actually cheaper than its peers when you consider factors like cost.
This fund requires a minimum initial investment of $0, while there is no minimum for each subsequent investment.
Fees charged by investment advisors have not been taken into considiration. Returns would be less if those were included.
Bottom Line
This could just be the start of your research on VISGXin the Index 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.
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
Get Your Free (VISGX): Fund Analysis Report
