Is Vanguard Mid-Cap Growth Fund (VMGRX) a Strong Mutual Fund Pick Right Now?

On the lookout for a Mid Cap Growth fund? Starting with Vanguard Mid-Cap Growth Fund (VMGRX) is one possibility. VMGRX possesses a Zacks Mutual Fund Rank of 1 (Strong Buy), which is based on various forecasting factors like size, cost, and past performance.ObjectiveZacks categorizes VMGRX as Mid Cap Growth, a segment packed with options. Mid Cap Growth mutual funds aim to target companies with a market capitalization between $2 billion and $10 billion that are also expected to exhibit more extensive growth opportunities for investors than their peers. A firm is typically considered to be a growth stock if it consistently posts impressive sales and/or earnings growth.History of Fund/ManagerVanguard Group is based in Malvern, PA, and is the manager of VMGRX. The Vanguard Mid-Cap Growth Fund made its debut in December of 1997 and VMGRX has managed to accumulate roughly $3.02 billion in assets, as of the most recently available information. The fund is currently managed by a team of investment professionals.PerformanceInvestors naturally seek funds with strong performance. This fund carries a 5-year annualized total return of 9.31%, 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 5.12%, 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 VMGRX over the past three years is 22.11% compared to the category average of 21.47%. The fund's standard deviation over the past 5 years is 23.14% compared to the category average of 23.12%. This makes the fund more volatile than its peers over the past half-decade.Risk FactorsInvestors should note that the fund has a 5-year beta of 1.18, which means it is hypothetically more 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. Over the past 5 years, the fund has a negative alpha of -7.99. This means that managers in this portfolio find it difficult to pick securities that generate better-than-benchmark returns.HoldingsExploring 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 primarily on equities that are traded in the United States.Currently, this mutual fund is holding 82.33% in stocks, and these companies have an average market capitalization of $31.25 billion. With turnover at about 69%, this fund makes more trades per year than the comparable average.ExpensesCosts 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, VMGRX is a no load fund. It has an expense ratio of 0.33% compared to the category average of 1.04%. VMGRX 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 $1.Fees charged by investment advisors have not been taken into considiration. Returns would be less if those were included.Bottom LineOverall, Vanguard Mid-Cap Growth Fund ( VMGRX ) has a high Zacks Mutual Fund rank, and in conjunction with its comparatively similar performance, average downside risk, and lower fees, this fund looks like a great potential choice for investors right now.For additional information on the Mid Cap Growth area of the mutual fund world, make sure to check out www.zacks.com/funds/mutual-funds. There, you can see more about the ranking process, and dive even deeper into VMGRX too for additional information. And don't forget, Zacks has all of your needs covered on the equity side too! 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Click to get this free report Get Your Free (VMGRX): Fund Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).Zacks Investment ResearchWeiter zum vollständigen Artikel bei Zacks Weiter zum vollständigen Artikel bei Zacks