Is Vanguard Global Mineral Volatility Investor (VMVFX) a Strong Mutual Fund Pick Right Now?

Zacks Equity Research

Any investors hoping to find a Global - Equity fund could think about starting with Vanguard Global Mineral Volatility Investor (VMVFX). VMVFX bears a Zacks Mutual Fund Rank of 3 (Hold), which is based on nine forecasting factors like size, cost, and past performance.

Objective

VMVFX is classified in the Global - Equity segment by Zacks, an area full of possibilities. Even though Global - Equity mutual funds invest in bigger markets like the U.S., Europe, and Japan, these kinds of funds aren't limited by geography. Rather, they offer an investment strategy that utilizes the global economy to provide stable returns.

History of Fund/Manager

Vanguard Group is based in Malvern, PA, and is the manager of VMVFX. Vanguard Global Mineral Volatility Investor made its debut in December of 2013, and since then, VMVFX has accumulated about $597.02 million in assets, per the most up-to-date date available. The fund is currently managed by Antonio Picca who has been in charge of the fund since November of 2018.

Performance

Investors naturally seek funds with strong performance. VMVFX has a 5-year annualized total return of 9.82% and it sits in the top third among its category peers. Investors who prefer analyzing shorter time frames should look at its 3-year annualized total return of 9.96%, which places it in the middle third during this time-frame.

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. VMVFX's standard deviation over the past three years is 7.59% compared to the category average of 10.5%. Looking at the past 5 years, the fund's standard deviation is 7.52% compared to the category average of 10.73%. This makes the fund less volatile than its peers over the past half-decade.

Risk Factors

One cannot ignore the volatility of this segment, however, as it is always important for investors to remember the downside to any potential investment.

Investors should note that the fund has a 5-year beta of 0.55, so it is likely going to be less 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. VMVFX has generated a positive alpha over the past five years of 3.32, demonstrating that managers in this portfolio are skilled in picking securities that generate better-than-benchmark returns.

Expenses

As competition heats up in the mutual fund market, costs become increasingly important. Compared to its otherwise identical counterpart, a low-cost product will be an outperformer, all other things being equal. Thus, taking a closer look at cost-related metrics is vital for investors. In terms of fees, VMVFX is a no load fund. It has an expense ratio of 0.22% compared to the category average of 1.12%. So, VMVFX is actually cheaper than its peers from a cost perspective.

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.

Bottom Line

Overall, Vanguard Global Mineral Volatility Investor ( VMVFX ) has a neutral Zacks Mutual Fund rank, strong performance, average downside risk, and lower fees compared to its peers.

Your research on the Global - Equity segment doesn't have to stop here. You can check out all the great mutual fund tools we have to offer by going to www.zacks.com/funds/mutual-funds to see the additional features we offer as well for additional information. Zacks provides a full suite of tools to help you analyze your portfolio - both funds and stocks - in the most efficient way possible.


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