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Is Invesco Equally-Weighted S&P 500 A (VADAX) a Strong Mutual Fund Pick Right Now?
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Mutual Fund Equity Report fund seekers should consider taking a look at Invesco Equally-Weighted S&P 500 A (VADAX - Free Report) . VADAX holds a Zacks Mutual Fund Rank of 2 (Buy), which is based on various forecasting factors like size, cost, and past performance.
History of Fund/Manager
Invesco is based in Kansas City, MO, and is the manager of VADAX. Invesco Equally-Weighted S&P 500 A debuted in July of 1997. Since then, VADAX has accumulated assets of about $2.69 billion, according to the most recently available information. The fund's current manager is a team of investment professionals.
Performance
Of course, investors look for strong performance in funds. VADAX has a 5-year annualized total return of 6.81% and is in the bottom 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 10.82%, which places it in the top 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. Over the past three years, VADAX's standard deviation comes in at 19.13%, compared to the category average of 15%. The standard deviation of the fund over the past 5 years is 20.92% compared to the category average of 16.04%. 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 1.05, so it is likely going to be more volatile than the market at large. Because alpha represents a portfolio's performance on a risk-adjusted basis relative to a benchmark, which is the S&P 500 in this case, one should pay attention to this metric as well. Over the past 5 years, the fund has a negative alpha of -2.95. This means that managers in this portfolio find it difficult to pick securities that generate better-than-benchmark returns.
Holdings
Exploring 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 primarily on equities that are traded in the United States.
Right now, 78.27% of this mutual fund's holdings are stocks and it has 3.99% of assets in foreign securities. The fund has the heaviest exposure to the following market sectors:
Technology
Finance
Industrial Cyclical
Non-Durable
Turnover is 20%, which means, on average, the fund makes fewer trades than its comparable peers.
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, VADAX is a load fund. It has an expense ratio of 0.53% compared to the category average of 0.91%. So, VADAX is actually cheaper than its peers from a cost perspective.
Investors should also note that the minimum initial investment for the product is $1,000 and that each subsequent investment needs to be at $50
Fees charged by investment advisors have not been taken into considiration. Returns would be less if those were included.
Bottom Line
Overall, even with its comparatively weak performance, average downside risk, and lower fees, Invesco Equally-Weighted S&P 500 A ( VADAX ) has a high Zacks Mutual Fund rank, and therefore looks a great potential choice for investors right now.
Your research on the Mutual Fund Equity Report segment doesn't have to stop here. You can check out all the great mutual fund tools we have to offer by going to www.zacks.com/funds/mutual-funds to see the additional features we offer as well for additional information. Zacks provides a full suite of tools to help you analyze your portfolio - both funds and stocks - in the most efficient way possible.
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Is Invesco Equally-Weighted S&P 500 A (VADAX) a Strong Mutual Fund Pick Right Now?
Mutual Fund Equity Report fund seekers should consider taking a look at Invesco Equally-Weighted S&P 500 A (VADAX - Free Report) . VADAX holds a Zacks Mutual Fund Rank of 2 (Buy), which is based on various forecasting factors like size, cost, and past performance.
History of Fund/Manager
Invesco is based in Kansas City, MO, and is the manager of VADAX. Invesco Equally-Weighted S&P 500 A debuted in July of 1997. Since then, VADAX has accumulated assets of about $2.69 billion, according to the most recently available information. The fund's current manager is a team of investment professionals.
Performance
Of course, investors look for strong performance in funds. VADAX has a 5-year annualized total return of 6.81% and is in the bottom 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 10.82%, which places it in the top 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. Over the past three years, VADAX's standard deviation comes in at 19.13%, compared to the category average of 15%. The standard deviation of the fund over the past 5 years is 20.92% compared to the category average of 16.04%. 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 1.05, so it is likely going to be more volatile than the market at large. Because alpha represents a portfolio's performance on a risk-adjusted basis relative to a benchmark, which is the S&P 500 in this case, one should pay attention to this metric as well. Over the past 5 years, the fund has a negative alpha of -2.95. This means that managers in this portfolio find it difficult to pick securities that generate better-than-benchmark returns.
Holdings
Exploring 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 primarily on equities that are traded in the United States.
Right now, 78.27% of this mutual fund's holdings are stocks and it has 3.99% of assets in foreign securities. The fund has the heaviest exposure to the following market sectors:
- Technology
- Finance
- Industrial Cyclical
- Non-Durable
Turnover is 20%, which means, on average, the fund makes fewer trades than its comparable peers.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, VADAX is a load fund. It has an expense ratio of 0.53% compared to the category average of 0.91%. So, VADAX is actually cheaper than its peers from a cost perspective.
Investors should also note that the minimum initial investment for the product is $1,000 and that each subsequent investment needs to be at $50
Fees charged by investment advisors have not been taken into considiration. Returns would be less if those were included.
Bottom Line
Overall, even with its comparatively weak performance, average downside risk, and lower fees, Invesco Equally-Weighted S&P 500 A ( VADAX ) has a high Zacks Mutual Fund rank, and therefore looks a great potential choice for investors right now.
Your research on the Mutual Fund Equity Report segment doesn't have to stop here. You can check out all the great mutual fund tools we have to offer by going to www.zacks.com/funds/mutual-funds to see the additional features we offer as well for additional information. Zacks provides a full suite of tools to help you analyze your portfolio - both funds and stocks - in the most efficient way possible.