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Investors looking for mutual fund equity reporting funds should consider the Vanguard Dividend Appreciation Index Admiral (VDADX – free report). This fund is not tracked by the Zacks Mutual Fund Rank, but you can examine other factors such as performance, volatility, and cost.
History of fund managers
Vanguard Group, headquartered in Malvern, Pennsylvania, is the manager of VDADX. Vanguard Dividend Appreciation Index Admiral made his debut in December 2013, and since then, VDADX’s assets have reached approximately $13.3 billion, according to the latest data available. The fund is currently managed by Walter Negiman, who has been the fund’s director since May 2016.
performance
Of course, investors want strong performance from their funds. This fund has achieved a total return of 10.85% per annum over his five years, which ranks in the middle third of funds in its category. If you’re interested in shorter time periods, don’t ignore that his three-year annualized total return for this fund is his 7.94%. This ranks in the bottom third within this period.
It is important to note that product returns do not reflect all costs. Unreflected fees reduce your revenue.Total return does not reflect the return of the fund [%] Sales commission. Total revenue would have been even lower if sales commissions had been included.
When looking at a fund’s performance, it’s also important to look at the standard deviation of returns. The lower the standard deviation, the lower the fund’s volatility. The standard deviation of his VDADX over the past three years is 15.92%, compared to the category average of 17.84%. The fund’s standard deviation over the past five years is 16.85%, compared to the category average of 18.87%. This has resulted in the fund’s lower volatility relative to its peers over the past five years.
Risk factor
With a five-year beta of 0.85, we believe this fund’s volatility is lower than the market average. Another factor to consider is alpha. Alpha reflects the performance of a portfolio on a risk-adjusted basis compared to a benchmark, in this case the S&P 500. The manager of this portfolio finds it difficult to select securities because the negative alpha is -0.13. Generate returns that exceed the benchmark.
Holdings
Researching mutual fund holdings is also a valuable exercise. This can tell you how managers are applying the prescribed methodology and whether there are any inherent biases in their approach. This particular fund focuses primarily on stocks traded in the United States.
Currently, 77.02% of the investment trust’s assets are held in stocks, with an average market capitalization of $316.51 billion. The fund has the highest exposure to the following market sectors:
- technology
- finance
- Not durable
- industrial cycle
Volume is 12%, meaning on average this fund trades fewer transactions than comparable funds.
expenses
Cost is becoming increasingly important when investing in mutual funds, especially as competition in this market increases. And all things being equal, lower-priced products outperform otherwise identical products, so it’s important for investors to take a closer look at these metrics. In terms of fees, VDADX is a no-load fund. The expense ratio is 0.08%, compared to the category average of 0.76%. So from a cost perspective, VDADX is actually cheaper than other products.
Investors should also note that the minimum initial investment in the product is $3,000, with subsequent investments required in $1 increments.
Fees charged by investment advisors are not taken into account. If they are included, there will be fewer returns.
conclusion
Your research on the Mutual Fund Stock Report segment need not end here. You can visit www.zacks.com/funds/mutual-funds to check out all of our great mutual fund tools and see additional features and information we offer. And don’t forget, Zacks has you covered on the stocks side too. Be sure to check out Zacks.com to learn more about our screening features, ranks, and all articles.
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