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Is Vanguard Extended Market Index Investor (VEXMX) a Strong Mutual Fund Pick Right Now?
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Are you on the hunt for a Small Cap Blend fund? You should think about starting with Vanguard Extended Market Index Investor (VEXMX - 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.
Objective
VEXMX is one of many Small Cap Blend funds to choose from. Small Cap Blend mutual funds allow investors a way to diversify their funds among various types of small-cap stocks. These funds seek companies with market capitalization of less than $2 billion, and aid in reducing volatility inherent in lower market cap stocks.
History of Fund/Manager
VEXMX is a part of the Vanguard Group family of funds, a company based out of Malvern, PA. Since Vanguard Extended Market Index Investor made its debut in December of 1987, VEXMX has garnered more than $162.75 million in assets. William Coleman is the fund's current manager and has held that role since November of 2017.
Performance
Investors naturally seek funds with strong performance. This fund has delivered a 5-year annualized total return of 15.03%, and it sits in the bottom third among its category peers. Investors who prefer analyzing shorter time frames should look at its 3-year annualized total return of 2.55%, 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 VEXMX over the past three years is 22.9% compared to the category average of 15.25%. The standard deviation of the fund over the past 5 years is 22.62% compared to the category average of 16.33%. This makes the fund more volatile than its peers over the past half-decade.
Risk Factors
With a 5-year beta of 1.19, the fund is likely to be more volatile than the market average. 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 negative alpha of -4.87, 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 largely on equities that are traded in the United States.
This fund is currently holding about 75.34% in stocks, which have an average market capitalization of $15.14 billion. With turnover at about 11%, this fund makes fewer trades than the average comparable fund.
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, VEXMX is a no load fund. It has an expense ratio of 0.19% compared to the category average of 0.94%. Looking at the fund from a cost perspective, VEXMX is actually cheaper than its peers.
Investors should also note that the minimum initial investment for the product is $0 and that each subsequent investment has no minimum amount.
Fees charged by investment advisors have not been taken into considiration. Returns would be less if those were included.
Bottom Line
This could just be the start of your research on VEXMXin the Small Cap Blend category. Consider going to www.zacks.com/funds/mutual-funds for additional information about this fund, and all the others that we rank as well 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 Vanguard Extended Market Index Investor (VEXMX) a Strong Mutual Fund Pick Right Now?
Are you on the hunt for a Small Cap Blend fund? You should think about starting with Vanguard Extended Market Index Investor (VEXMX - 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.
Objective
VEXMX is one of many Small Cap Blend funds to choose from. Small Cap Blend mutual funds allow investors a way to diversify their funds among various types of small-cap stocks. These funds seek companies with market capitalization of less than $2 billion, and aid in reducing volatility inherent in lower market cap stocks.
History of Fund/Manager
VEXMX is a part of the Vanguard Group family of funds, a company based out of Malvern, PA. Since Vanguard Extended Market Index Investor made its debut in December of 1987, VEXMX has garnered more than $162.75 million in assets. William Coleman is the fund's current manager and has held that role since November of 2017.
Performance
Investors naturally seek funds with strong performance. This fund has delivered a 5-year annualized total return of 15.03%, and it sits in the bottom third among its category peers. Investors who prefer analyzing shorter time frames should look at its 3-year annualized total return of 2.55%, 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 VEXMX over the past three years is 22.9% compared to the category average of 15.25%. The standard deviation of the fund over the past 5 years is 22.62% compared to the category average of 16.33%. This makes the fund more volatile than its peers over the past half-decade.
Risk Factors
With a 5-year beta of 1.19, the fund is likely to be more volatile than the market average. 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 negative alpha of -4.87, 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 largely on equities that are traded in the United States.
This fund is currently holding about 75.34% in stocks, which have an average market capitalization of $15.14 billion. With turnover at about 11%, this fund makes fewer trades than the average comparable fund.
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, VEXMX is a no load fund. It has an expense ratio of 0.19% compared to the category average of 0.94%. Looking at the fund from a cost perspective, VEXMX is actually cheaper than its peers.
Investors should also note that the minimum initial investment for the product is $0 and that each subsequent investment has no minimum amount.
Fees charged by investment advisors have not been taken into considiration. Returns would be less if those were included.
Bottom Line
This could just be the start of your research on VEXMXin the Small Cap Blend category. Consider going to www.zacks.com/funds/mutual-funds for additional information about this fund, and all the others that we rank as well 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.