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Is JPMorgan Dynamic Small Cap Growth A (VSCOX) a Strong Mutual Fund Pick Right Now?
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Any investors hoping to find a Small Cap Growth fund could think about starting with JPMorgan Dynamic Small Cap Growth A (VSCOX - Free Report) . VSCOX bears a Zacks Mutual Fund Rank of 2 (Buy), which is based on various forecasting factors like size, cost, and past performance.
Objective
The world of Small Cap Growth funds is an area filled with options, such as VSCOX. These funds tend to create their portfolios around stocks that sport large growth opportunities and market capitalization of less than $2 billion. The companies in these portfolios are usually on the smaller side, and are in up-and-coming industries and markets.
History of Fund/Manager
J.P. Morgan is responsible for VSCOX, and the company is based out of Boston, MA. JPMorgan Dynamic Small Cap Growth A made its debut in May of 1997, and since then, VSCOX has accumulated about $386.30 million in assets, per the most up-to-date date available. Eytan Shapiro is the fund's current manager and has held that role since September of 2004.
Performance
Investors naturally seek funds with strong performance. This fund carries a 5-year annualized total return of 8.71%, and is in the top 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 0.82%, which places it in the bottom 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. The standard deviation of VSCOX over the past three years is 18.93% compared to the category average of 15.84%. The fund's standard deviation over the past 5 years is 21.47% compared to the category average of 17.25%. This makes the fund more volatile than its peers over the past half-decade.
Risk Factors
The fund has a 5-year beta of 1.05, so investors should note that it is hypothetically 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 -5.4. This means that managers in this portfolio find it difficult to pick securities that generate better-than-benchmark returns.
Holdings
Examining 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.
The mutual fund currently has 79.36% of its holdings in stocks, with an average market capitalization of $4.80 billion. The fund has the heaviest exposure to the following market sectors:
Industrial Cyclical
Finance
Technology
Other
Turnover is 37%, which means, on average, the fund makes fewer trades than the average comparable fund.
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, VSCOX is a load fund. It has an expense ratio of 1.24% compared to the category average of 0.98%. So, VSCOX is actually more expensive than its peers from a cost perspective.
This fund requires a minimum initial investment of $1,000, and each subsequent investment should be at least $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 strong performance, average downside risk, and higher fees, JPMorgan Dynamic Small Cap Growth A ( VSCOX ) has a high Zacks Mutual Fund rank, and therefore looks a good potential choice for investors right now.
Your research on the Small Cap Growth 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 JPMorgan Dynamic Small Cap Growth A (VSCOX) a Strong Mutual Fund Pick Right Now?
Any investors hoping to find a Small Cap Growth fund could think about starting with JPMorgan Dynamic Small Cap Growth A (VSCOX - Free Report) . VSCOX bears a Zacks Mutual Fund Rank of 2 (Buy), which is based on various forecasting factors like size, cost, and past performance.
Objective
The world of Small Cap Growth funds is an area filled with options, such as VSCOX. These funds tend to create their portfolios around stocks that sport large growth opportunities and market capitalization of less than $2 billion. The companies in these portfolios are usually on the smaller side, and are in up-and-coming industries and markets.
History of Fund/Manager
J.P. Morgan is responsible for VSCOX, and the company is based out of Boston, MA. JPMorgan Dynamic Small Cap Growth A made its debut in May of 1997, and since then, VSCOX has accumulated about $386.30 million in assets, per the most up-to-date date available. Eytan Shapiro is the fund's current manager and has held that role since September of 2004.
Performance
Investors naturally seek funds with strong performance. This fund carries a 5-year annualized total return of 8.71%, and is in the top 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 0.82%, which places it in the bottom 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. The standard deviation of VSCOX over the past three years is 18.93% compared to the category average of 15.84%. The fund's standard deviation over the past 5 years is 21.47% compared to the category average of 17.25%. This makes the fund more volatile than its peers over the past half-decade.
Risk Factors
The fund has a 5-year beta of 1.05, so investors should note that it is hypothetically 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 -5.4. This means that managers in this portfolio find it difficult to pick securities that generate better-than-benchmark returns.
Holdings
Examining 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.
The mutual fund currently has 79.36% of its holdings in stocks, with an average market capitalization of $4.80 billion. The fund has the heaviest exposure to the following market sectors:
- Industrial Cyclical
- Finance
- Technology
- Other
Turnover is 37%, which means, on average, the fund makes fewer trades than the average comparable fund.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, VSCOX is a load fund. It has an expense ratio of 1.24% compared to the category average of 0.98%. So, VSCOX is actually more expensive than its peers from a cost perspective.
This fund requires a minimum initial investment of $1,000, and each subsequent investment should be at least $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 strong performance, average downside risk, and higher fees, JPMorgan Dynamic Small Cap Growth A ( VSCOX ) has a high Zacks Mutual Fund rank, and therefore looks a good potential choice for investors right now.
Your research on the Small Cap Growth 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.