Is Vanguard Value Index Investor (VIVAX) a Strong Mutual Fund Pick Right Now?

If you have been looking for Large Cap Value funds, a place to start could be Vanguard Value Index Investor (VIVAX). VIVAX has a Zacks Mutual Fund Rank of 1 (Strong Buy), which is based on various forecasting factors like size, cost, and past performance.ObjectiveVIVAX is one of many Large Cap Value mutual funds to choose from. These funds invest in equities with a market capitalization of $10 billion or more, but whose share prices do not reflect their intrinsic value. This strategy can often produce low P/E ratios and high dividend yields; however, growth levels are oftentimes cut back. These funds' high growth opportunities are slowed even more since large-cap stocks are usually in more stable industries with low to moderate growth prospects. Thus, investors interested in a stable income stream find Large Cap Value funds very appealing.History of Fund/ManagerVIVAX finds itself in the Vanguard Group family, based out of Malvern, PA. Vanguard Value Index Investor debuted in November of 1992. Since then, VIVAX has accumulated assets of about $145.70 million, according to the most recently available information. A team of investment professionals is the fund's current manager.PerformanceObviously, what investors are looking for in these funds is strong performance relative to their peers. This fund has delivered a 5-year annualized total return of 14.01%, 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 11.11%, which places it in the middle 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. Compared to the category average of 14.68%, the standard deviation of VIVAX over the past three years is 14.72%. The standard deviation of the fund over the past 5 years is 15.12% compared to the category average of 14.2%. This makes the fund more volatile than its peers over the past half-decade.Risk FactorsInvestors should not forget about beta, an important way to measure a mutual fund's risk compared to the market as a whole. VIVAX has a 5-year beta of 0.82, which means it is likely to be less volatile than the market average. Alpha is an additional metric to take into consideration, since it represents a portfolio's performance on a risk-adjusted basis relative to a benchmark, which in this case, is the S&P 500. VIVAX's 5-year performance has produced a positive alpha of 0.57, which means managers in this portfolio are skilled in picking 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 84.11% in stocks, and these companies have an average market capitalization of $184.98 billion.With turnover at about 9%, this fund makes fewer trades than comparable funds.ExpensesFor 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, VIVAX is a no load fund. It has an expense ratio of 0.17% compared to the category average of 0.94%. So, VIVAX is actually cheaper than its peers from a cost perspective.This fund requires a minimum initial investment of $0, while there is no minimum for each subsequent investment.Fees charged by investment advisors have not been taken into consideration. Returns would be less if those were included.Bottom LineOverall, Vanguard Value Index Investor ( VIVAX ) has a high Zacks Mutual Fund rank, and in conjunction with its comparatively similar performance, average downside risk, and lower fees, Vanguard Value Index Investor ( VIVAX ) looks like a good potential choice for investors right now.For additional information on this product, or to compare it to other mutual funds in the Large Cap Value, make sure to go to www.zacks.com/funds/mutual-funds for additional information. If you are more of a stock investor, make sure to also check out our Zacks Rank, and our full suite of tools we have available for novice and professional investors alike.Free Report: 3 Software Stocks Poised to SkyrocketSoftware stocks are poised to catapult higher in the coming months (and years) thanks to several factors, especially the explosive growth of AI. Zacks' urgent report reveals 3 top software stocks to own right now.Access the report free today >>Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Get Your Free (VIVAX): 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