If you’ve been stuck searching for Small Cap Value funds, consider Vanguard Small-Cap Value Index Investor (VISVX) as a possibility. While this fund is not tracked by the Zacks Mutual Fund Rank, we were able to examine other factors like performance, volatility, and cost.
The world of Small Cap Value mutual funds is an area filled with options, such as VISVX. Small Cap Value funds invest in small companies with stock market valuation less than $2 billion. These funds offer more bang for an owner’s buck, providing low P/E ratios, high dividend yields, and better-than-average P/S ratios.
Vanguard Group is based in Malvern, PA, and is the manager of VISVX. Since Vanguard Small-Cap Value Index Investor made its debut in April of 1998, VISVX has garnered more than $94.56 million in assets. The fund’s current manager, William Coleman, has been in charge of the fund since April of 2016.
Of course, investors look for strong performance in funds. This fund in particular has delivered a 5-year annualized total return of 12.87%, and it sits in the middle 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 6.52%, 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. VISVX’s standard deviation over the past three years is 21.67% compared to the category average of 16.74%. Over the past 5 years, the standard deviation of the fund is 23.68% compared to the category average of 18.55%. This makes the fund more volatile than its peers over the past half-decade.
Investors should not forget about beta, an important way to measure a mutual fund’s risk compared to the market as a whole. VISVX has a 5-year beta of 1.15, which means it 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. VISVX’s 5-year performance has produced a negative alpha of -4.35, which means managers in this portfolio find it difficult to pick securities that generate better-than-benchmark returns.
