Is Vanguard Tax-Managed Cap Appreciation Admiral (VTCLX) a Strong Mutual Fund Pick Right Now?
If you've been stuck searching for Large Cap Growth funds, consider Vanguard Tax-Managed Cap Appreciation Admiral (VTCLX) as a possibility. VTCLX has a Zacks Mutual Fund Rank of 2 (Buy), which is based on various forecasting factors like size, cost, and past performance.ObjectiveVTCLX is classified in the Large Cap Growth segment by Zacks, an area full of possibilities. Companies are usually considered to be large-cap if their stock market valuation is more than $10 billion. Large Cap Growth mutual funds invest in many large U.S. firms that are projected to grow at a faster rate than their large-cap peers.History of Fund/ManagerVTCLX is a part of the Vanguard Group family of funds, a company based out of Malvern, PA. Since Vanguard Tax-Managed Cap Appreciation Admiral made its debut in November of 2001, VTCLX has garnered more than $22.53 billion in assets. The fund's current manager, Jena Stenger, has been in charge of the fund since February of 2025.PerformanceOf course, investors look for strong performance in funds. This fund carries a 5-year annualized total return of 17.02%, and it sits in the middle third among its category peers. Investors who prefer analyzing shorter time frames should look at its 3-year annualized total return of 22.11%, 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 VTCLX over the past three years is 13.22% compared to the category average of 12.82%. Looking at the past 5 years, the fund's standard deviation is 16.05% compared to the category average of 14.55%. This makes the fund more volatile than its peers over the past half-decade.Risk FactorsWith a 5-year beta of 1.02, the fund is likely to be as volatile as 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. VTCLX's 5-year performance has produced a negative alpha of -0.67, which means 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.The mutual fund currently has 84.97% of its holdings in stocks, which have an average market capitalization of $527.42 billion. The fund has the heaviest exposure to the following market sectors:TechnologyFinanceRetail TradeWith turnover at about 6%, this fund makes fewer trades than comparable funds.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, VTCLX is a no load fund. It has an expense ratio of 0.09% compared to the category average of 0.83%. So, VTCLX is actually cheaper than its peers from a cost perspective.Investors need to be aware that with this product, the minimum initial investment is $10,000; each subsequent investment needs to be at least $1.Fees charged by investment advisors have not been taken into consideration. Returns would be less if those were included.Bottom LineOverall, Vanguard Tax-Managed Cap Appreciation Admiral ( VTCLX ) 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 good potential choice for investors right now.For additional information on the Large 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 VTCLX too for additional information. Want to learn even more? 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Click to get this free report Get Your Free (VTCLX): Fund Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).Zacks Investment ResearchWeiter zum vollständigen Artikel bei Zacks
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