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Is USAA NASDAQ-100 Index Fund (USNQX) a Strong Mutual Fund Pick Right Now?
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There are plenty of choices in the Index category, but where should you start your research? Well, one fund that might be worth investigating is USAA NASDAQ-100 Index Fund (USNQX - 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
Victory is based in Columbus, OH, and is the manager of USNQX. USAA NASDAQ-100 Index Fund debuted in October of 2000. Since then, USNQX has accumulated assets of about $5.67 billion, according to the most recently available information. Mannik Dhillon is the fund's current manager and has held that role since July of 2019.
Performance
Investors naturally seek funds with strong performance. This fund carries a 5-year annualized total return of 19.66%, 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 9.23%, 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 USNQX over the past three years is 22.06% compared to the category average of 15.71%. Looking at the past 5 years, the fund's standard deviation is 21.54% compared to the category average of 16.48%. This makes the fund more volatile than its peers over the past half-decade.
Risk Factors
With a 5-year beta of 1.09, the fund is likely to be more volatile than the market average. 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. USNQX has generated a positive alpha over the past five years of 4.1, demonstrating that 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, USNQX is a no load fund. It has an expense ratio of 0.42% compared to the category average of 0.95%. USNQX is actually cheaper than its peers when you consider factors like cost.
While the minimum initial investment for the product is $3,000, investors should also note that each subsequent investment needs to 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
Want even more information about USNQX? 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 want to check out our stock reports as well, make sure to go to Zacks.com to see all of the great tools we have to offer, including our time-tested Zacks Rank.
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Is USAA NASDAQ-100 Index Fund (USNQX) a Strong Mutual Fund Pick Right Now?
There are plenty of choices in the Index category, but where should you start your research? Well, one fund that might be worth investigating is USAA NASDAQ-100 Index Fund (USNQX - 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
Victory is based in Columbus, OH, and is the manager of USNQX. USAA NASDAQ-100 Index Fund debuted in October of 2000. Since then, USNQX has accumulated assets of about $5.67 billion, according to the most recently available information. Mannik Dhillon is the fund's current manager and has held that role since July of 2019.
Performance
Investors naturally seek funds with strong performance. This fund carries a 5-year annualized total return of 19.66%, 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 9.23%, 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 USNQX over the past three years is 22.06% compared to the category average of 15.71%. Looking at the past 5 years, the fund's standard deviation is 21.54% compared to the category average of 16.48%. This makes the fund more volatile than its peers over the past half-decade.
Risk Factors
With a 5-year beta of 1.09, the fund is likely to be more volatile than the market average. 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. USNQX has generated a positive alpha over the past five years of 4.1, demonstrating that 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, USNQX is a no load fund. It has an expense ratio of 0.42% compared to the category average of 0.95%. USNQX is actually cheaper than its peers when you consider factors like cost.
While the minimum initial investment for the product is $3,000, investors should also note that each subsequent investment needs to 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
Want even more information about USNQX? 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 want to check out our stock reports as well, make sure to go to Zacks.com to see all of the great tools we have to offer, including our time-tested Zacks Rank.