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Is Vanguard Global Capital Cycles Fund Investor (VGPMX) a Strong Mutual Fund Pick Right Now?
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If you've been stuck searching for Sector - Precious Metal funds, consider Vanguard Global Capital Cycles Fund Investor (VGPMX - Free Report) as a possibility. VGPMX carries a Zacks Mutual Fund Rank of 2 (Buy), which is based on various forecasting factors like size, cost, and past performance.
Objective
We note that VGPMX is a Sector - Precious Metal option, and this area is loaded with different options. Sector - Precious Metal funds typically invest in companies that are involved in the mining and production of precious metals like gold, silver, platinum, and palladium. Because stocks in this environment often trade as leveraged bets of the underlying commodity--they are tied to the prices of the metal--these equities tend to be volatile.
History of Fund/Manager
Vanguard Group is based in Malvern, PA, and is the manager of VGPMX. Since Vanguard Global Capital Cycles Fund Investor made its debut in May of 1984, VGPMX has garnered more than $1.49 billion in assets. The fund is currently managed by Keith White who has been in charge of the fund since July of 2018.
Performance
Obviously, what investors are looking for in these funds is strong performance relative to their peers. VGPMX has a 5-year annualized total return of 14.43% and it sits 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 11.2%, 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. The standard deviation of VGPMX over the past three years is 17.09% compared to the category average of 1%. Over the past 5 years, the standard deviation of the fund is 18.89% compared to the category average of 49%. This makes the fund less volatile than its peers over the past half-decade.
Risk Factors
Investors should note that the fund has a 5-year beta of 0.82, 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. VGPMX's 5-year performance has produced a positive alpha of 2.06, which means managers in this portfolio are skilled in picking 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, VGPMX is a no load fund. It has an expense ratio of 0.44% compared to the category average of 79%. So, VGPMX is actually cheaper than its peers from a cost perspective.
This fund requires a minimum initial investment of $3,000, and each subsequent investment should be at least $1.
Fees charged by investment advisors have not been taken into considiration. Returns would be less if those were included.
Bottom Line
Overall, Vanguard Global Capital Cycles Fund Investor ( VGPMX ) has a high Zacks Mutual Fund rank, and in conjunction with its comparatively strong performance, better downside risk, and lower fees, Vanguard Global Capital Cycles Fund Investor ( VGPMX ) looks like a good potential choice for investors right now.
Don't stop here for your research on Sector - Precious Metal funds. We also have plenty more on our site in order to help you find the best possible fund for your portfolio. Make sure to check out www.zacks.com/funds/mutual-funds for more information about the world of funds, and feel free to compare VGPMX to its peers 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 Vanguard Global Capital Cycles Fund Investor (VGPMX) a Strong Mutual Fund Pick Right Now?
If you've been stuck searching for Sector - Precious Metal funds, consider Vanguard Global Capital Cycles Fund Investor (VGPMX - Free Report) as a possibility. VGPMX carries a Zacks Mutual Fund Rank of 2 (Buy), which is based on various forecasting factors like size, cost, and past performance.
Objective
We note that VGPMX is a Sector - Precious Metal option, and this area is loaded with different options. Sector - Precious Metal funds typically invest in companies that are involved in the mining and production of precious metals like gold, silver, platinum, and palladium. Because stocks in this environment often trade as leveraged bets of the underlying commodity--they are tied to the prices of the metal--these equities tend to be volatile.
History of Fund/Manager
Vanguard Group is based in Malvern, PA, and is the manager of VGPMX. Since Vanguard Global Capital Cycles Fund Investor made its debut in May of 1984, VGPMX has garnered more than $1.49 billion in assets. The fund is currently managed by Keith White who has been in charge of the fund since July of 2018.
Performance
Obviously, what investors are looking for in these funds is strong performance relative to their peers. VGPMX has a 5-year annualized total return of 14.43% and it sits 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 11.2%, 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. The standard deviation of VGPMX over the past three years is 17.09% compared to the category average of 1%. Over the past 5 years, the standard deviation of the fund is 18.89% compared to the category average of 49%. This makes the fund less volatile than its peers over the past half-decade.
Risk Factors
Investors should note that the fund has a 5-year beta of 0.82, 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. VGPMX's 5-year performance has produced a positive alpha of 2.06, which means managers in this portfolio are skilled in picking 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, VGPMX is a no load fund. It has an expense ratio of 0.44% compared to the category average of 79%. So, VGPMX is actually cheaper than its peers from a cost perspective.
This fund requires a minimum initial investment of $3,000, and each subsequent investment should be at least $1.
Fees charged by investment advisors have not been taken into considiration. Returns would be less if those were included.
Bottom Line
Overall, Vanguard Global Capital Cycles Fund Investor ( VGPMX ) has a high Zacks Mutual Fund rank, and in conjunction with its comparatively strong performance, better downside risk, and lower fees, Vanguard Global Capital Cycles Fund Investor ( VGPMX ) looks like a good potential choice for investors right now.
Don't stop here for your research on Sector - Precious Metal funds. We also have plenty more on our site in order to help you find the best possible fund for your portfolio. Make sure to check out www.zacks.com/funds/mutual-funds for more information about the world of funds, and feel free to compare VGPMX to its peers 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.