Looking for a Small Cap Value fund? Vanguard Small-Cap Value Index Admiral (VSIAX) presents a potential investment option worthy of consideration. Zacks Mutual Fund Rank does not currently track this fund; however, analysts have examined several key factors including performance history, volatility levels, and associated costs. The fund is categorized as Small Cap Value, a segment known for investing in companies with market capitalization below $2 billion, and these funds often offer value due to lower P/E ratios, high dividend yields, and advantageous P/S ratios relative to larger companies.
Since its debut in September 2011, VSIAX has accumulated over $20.22 billion in assets, demonstrating significant investor interest. The fund is managed by a team of investment professionals. Performance is a critical factor for investors, and VSIAX demonstrates a positive track record. Over a five-year period, it has achieved a total annualized return of 14.96%, placing it in the middle third of its peer group. A shorter-term view reveals a three-year annualized return of 11.73%, positioning the fund in the top third during this timeframe. It’s important to note that these return figures do not account for expenses, which could reduce overall returns. Total returns, as presented, do not include any associated sales charges, and the inclusion of these charges would likely result in lower total returns.
Analyzing a fund’s volatility is also a key consideration. Specifically, VSIAX’s standard deviation of returns over the past three years is 20.3%, compared to a category average of 16.7%. Over a five-year timescale, the fund’s standard deviation is 20.2% – higher than the category average of 15.97%. This indicates that the fund experiences greater volatility than its peers over the past half-decade. Investors should also consider beta, a measure of a fund’s risk relative to the overall market. VSIAX has a five-year beta of 1.07, signifying a higher volatility profile compared to the broader market. Furthermore, alpha, which assesses performance on a risk-adjusted basis relative to the S&P 500, has yielded a positive alpha of 0.11 for VSIAX over the past five years. This suggests the portfolio managers are adept at selecting securities that outperform the benchmark.
Examining the fund’s holdings provides insight into the manager’s strategy and potential biases. The fund primarily invests in equities traded within the United States. Currently, approximately 89.38% of the fund’s assets are invested in stocks with an average market capitalization of $9.24 billion. The fund’s largest sector exposures are within the Finance, Industrial, and Cyclical industries. With a turnover rate of approximately 22%, this fund conducts fewer transactions relative to its comparable peers. Investors should also carefully examine the fund’s costs. VSIAX is a “no-load” fund, meaning it doesn’t charge a sales commission. Its expense ratio is 0.07%, considerably lower than the category average of 1.02%. From a cost perspective, VSIAX offers a significant advantage to its competitors.
It’s important to note a minimum initial investment of $3,000, with subsequent investments requiring $1. Furthermore, the returns presented do not take into account the fees charged by investment advisors, which could further reduce overall returns. To fully assess your investment needs and explore the complete range of fund analysis tools offered, visit www.zacks.com/funds/mutual-funds for detailed information and additional features. For comprehensive analysis of your broader portfolio, visit Zacks.com to utilize our full suite of tools, allowing you to investigate all your stocks and funds in a centralized location. Want to receive the latest investment recommendations from Zacks Investment Research? Download our free "7 Best Stocks for the Next 30 Days" report today.