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Is USAA NASDAQ-100 Index Fund (USNQX) a Strong Mutual Fund Pick Right Now?
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If you've been stuck searching for Index funds, consider USAA NASDAQ-100 Index Fund (USNQX - Free Report) as a possibility. USNQX has no Zacks Mutual Fund Rank, but we have been able to look into other metrics like performance, volatility, and cost.
History of Fund/Manager
USNQX finds itself in the Victory family, based out of Columbus, OH. USAA NASDAQ-100 Index Fund made its debut in October of 2000, and since then, USNQX has accumulated about $5.44 billion in assets, per the most up-to-date date available. The fund's current manager, Mannik Dhillon, has been in charge of the fund since July of 2019.
Performance
Obviously, what investors are looking for in these funds is strong performance relative to their peers. This fund carries a 5-year annualized total return of 21.25%, and is in the top 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 11.01%, 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. Compared to the category average of 15.69%, the standard deviation of USNQX over the past three years is 22.61%. The standard deviation of the fund over the past 5 years is 21.49% compared to the category average of 16.33%. 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 1.1, which means it is hypothetically more 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. With a positive alpha of 4.79, managers in this portfolio are skilled in picking 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 principally on equities that are traded in the United States.
Right now, 76.32% of this mutual fund's holdings are stocks, which have an average market capitalization of $531.12 billion. The fund has the heaviest exposure to the following market sectors:
Technology
Retail Trade
With turnover at about 2%, this fund makes 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, USNQX is a no load fund. It has an expense ratio of 0.42% compared to the category average of 0.95%. From a cost perspective, USNQX is actually cheaper than its peers.
This fund requires a minimum initial investment of $3,000, 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
For additional information on this product, or to compare it to other mutual funds in the Index, make sure to go to www.zacks.com/funds/mutual-funds for additional information. And don't forget, Zacks has all of your needs covered on the equity side too! Make sure to check out Zacks.com for more information on our screening capabilities, Rank, and all our articles as well.
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Is USAA NASDAQ-100 Index Fund (USNQX) a Strong Mutual Fund Pick Right Now?
If you've been stuck searching for Index funds, consider USAA NASDAQ-100 Index Fund (USNQX - Free Report) as a possibility. USNQX has no Zacks Mutual Fund Rank, but we have been able to look into other metrics like performance, volatility, and cost.
History of Fund/Manager
USNQX finds itself in the Victory family, based out of Columbus, OH. USAA NASDAQ-100 Index Fund made its debut in October of 2000, and since then, USNQX has accumulated about $5.44 billion in assets, per the most up-to-date date available. The fund's current manager, Mannik Dhillon, has been in charge of the fund since July of 2019.
Performance
Obviously, what investors are looking for in these funds is strong performance relative to their peers. This fund carries a 5-year annualized total return of 21.25%, and is in the top 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 11.01%, 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. Compared to the category average of 15.69%, the standard deviation of USNQX over the past three years is 22.61%. The standard deviation of the fund over the past 5 years is 21.49% compared to the category average of 16.33%. 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 1.1, which means it is hypothetically more 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. With a positive alpha of 4.79, managers in this portfolio are skilled in picking 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 principally on equities that are traded in the United States.
Right now, 76.32% of this mutual fund's holdings are stocks, which have an average market capitalization of $531.12 billion. The fund has the heaviest exposure to the following market sectors:
- Technology
- Retail Trade
With turnover at about 2%, this fund makes 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, USNQX is a no load fund. It has an expense ratio of 0.42% compared to the category average of 0.95%. From a cost perspective, USNQX is actually cheaper than its peers.
This fund requires a minimum initial investment of $3,000, 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
For additional information on this product, or to compare it to other mutual funds in the Index, make sure to go to www.zacks.com/funds/mutual-funds for additional information. And don't forget, Zacks has all of your needs covered on the equity side too! Make sure to check out Zacks.com for more information on our screening capabilities, Rank, and all our articles as well.