If you have been looking for Small Cap Growth funds, a place to start could be Vanguard Explorer Fund Investor (VEXPX). VEXPX carries a Zacks Mutual Fund Rank of 2 (Buy), which is based on various forecasting factors like size, cost, and past performance.
VEXPX is one of many different Small Cap Growth funds to choose from. Small Cap Growth mutual funds build portfolios around stocks with markets caps under $2 billion and large growth opportunities. Additionally, these portfolios typically highlight smaller companies in promising markets and industries.
Vanguard Group is based in Malvern, PA, and is the manager of VEXPX. The Vanguard Explorer Fund Investor made its debut in December of 1967 and VEXPX has managed to accumulate roughly $3.22 billion in assets, as of the most recently available information. A team of investment professionals is the fund’s current manager.
Of course, investors look for strong performance in funds. This fund has delivered a 5-year annualized total return of 10.44%, and is in the middle third among its category peers. But if you are looking for a shorter time frame, it is also worth looking at its 3-year annualized total return of 5.65%, 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. The standard deviation of VEXPX over the past three years is 20.38% compared to the category average of 18.72%. The standard deviation of the fund over the past 5 years is 22.91% compared to the category average of 19.83%. This makes the fund more volatile than its peers over the past half-decade.
The fund has a 5-year beta of 1.14, so investors should note that 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 -5.01. This means that managers in this portfolio find it difficult to pick securities that generate better-than-benchmark returns.
Examining 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 mostly on equities that are traded in the United States.
