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Is Vanguard Target Retirement 2020 Fund (VTWNX) a Strong Mutual Fund Pick Right Now?
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Any investors who are searching for Mutual Fund Equity Report funds should take a look at Vanguard Target Retirement 2020 Fund (VTWNX - Free Report) . While this fund is not tracked by the Zacks Mutual Fund Rank, we were able to examine other factors like performance, volatility, and cost.
History of Fund/Manager
Vanguard Group is based in Malvern, PA, and is the manager of VTWNX. Since Vanguard Target Retirement 2020 Fund made its debut in June of 2006, VTWNX has garnered more than $43.14 billion in assets. William Coleman is the fund's current manager and has held that role since February of 2013.
Performance
Of course, investors look for strong performance in funds. VTWNX has a 5-year annualized total return of 4.64% 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 3.36%, 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. The standard deviation of VTWNX over the past three years is 9.85% compared to the category average of 9.62%. The fund's standard deviation over the past 5 years is 8.83% compared to the category average of 8.53%. This makes the fund more volatile than its peers over the past half-decade.
Risk Factors
Investors should note that the fund has a 5-year beta of 0.5, so it is likely going to be 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. The fund has produced a negative alpha over the past 5 years of -1.68, which shows that managers in this portfolio find it difficult to pick securities that generate better-than-benchmark returns.
Expenses
Costs are increasingly important for mutual fund investing, and particularly as competition heats up in this market. And all things being equal, a lower cost product will outperform its otherwise identical counterpart, so taking a closer look at these metrics is key for investors. In terms of fees, VTWNX is a no load fund. It has an expense ratio of 0.11% compared to the category average of 0.48%. Looking at the fund from a cost perspective, VTWNX is actually cheaper than its peers.
While the minimum initial investment for the product is $1,000, investors should also note that each subsequent investment needs to be at least $1.
Bottom Line
Want even more information about VTWNX? 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. 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 Target Retirement 2020 Fund (VTWNX) a Strong Mutual Fund Pick Right Now?
Any investors who are searching for Mutual Fund Equity Report funds should take a look at Vanguard Target Retirement 2020 Fund (VTWNX - Free Report) . While this fund is not tracked by the Zacks Mutual Fund Rank, we were able to examine other factors like performance, volatility, and cost.
History of Fund/Manager
Vanguard Group is based in Malvern, PA, and is the manager of VTWNX. Since Vanguard Target Retirement 2020 Fund made its debut in June of 2006, VTWNX has garnered more than $43.14 billion in assets. William Coleman is the fund's current manager and has held that role since February of 2013.
Performance
Of course, investors look for strong performance in funds. VTWNX has a 5-year annualized total return of 4.64% 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 3.36%, 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. The standard deviation of VTWNX over the past three years is 9.85% compared to the category average of 9.62%. The fund's standard deviation over the past 5 years is 8.83% compared to the category average of 8.53%. This makes the fund more volatile than its peers over the past half-decade.
Risk Factors
Investors should note that the fund has a 5-year beta of 0.5, so it is likely going to be 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. The fund has produced a negative alpha over the past 5 years of -1.68, which shows that managers in this portfolio find it difficult to pick securities that generate better-than-benchmark returns.
Expenses
Costs are increasingly important for mutual fund investing, and particularly as competition heats up in this market. And all things being equal, a lower cost product will outperform its otherwise identical counterpart, so taking a closer look at these metrics is key for investors. In terms of fees, VTWNX is a no load fund. It has an expense ratio of 0.11% compared to the category average of 0.48%. Looking at the fund from a cost perspective, VTWNX is actually cheaper than its peers.
While the minimum initial investment for the product is $1,000, investors should also note that each subsequent investment needs to be at least $1.
Bottom Line
Want even more information about VTWNX? 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. 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.