On the lookout for a Mutual Fund Equity Report fund? Starting with Vanguard Wellesley Income Admiral (VWIAX) is one possibility. VWIAX has a Zacks Mutual Fund Rank of 1 (Strong Buy), which is based on various forecasting factors like size, cost, and past performance.
History of Fund/Manager
VWIAX is a part of the Vanguard Group family of funds, a company based out of Malvern, PA. Vanguard Wellesley Income Admiral made its debut in May of 2001, and since then, VWIAX has accumulated about $46.71 billion in assets, per the most up-to-date date available. Loren L. Moran is the fund’s current manager and has held that role since January of 2017.
Of course, investors look for strong performance in funds. This fund in particular has delivered a 5-year annualized total return of 4.02%, and is 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 2.36%, which places it in the top 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. The standard deviation of VWIAX over the past three years is 10.04% compared to the category average of 14.11%. Over the past 5 years, the standard deviation of the fund is 8.39% compared to the category average of 12.17%. This makes the fund less volatile than its peers over the past half-decade.
Investors should note that the fund has a 5-year beta of 0.4, so it is likely going to be less volatile than the market at large. Because alpha represents a portfolio’s performance on a risk-adjusted basis relative to a benchmark, which is the S&P 500 in this case, one should pay attention to this metric as well. VWIAX’s 5-year performance has produced a negative alpha of -0.79, which means managers in this portfolio find it difficult to pick securities that generate better-than-benchmark returns.
Costs 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, VWIAX is a no load fund. It has an expense ratio of 0.16% compared to the category average of 0.86%. So, VWIAX is actually cheaper than its peers from a cost perspective.
While the minimum initial investment for the product is $50,000, investors should also note that each subsequent investment needs to be at least $1.
Overall, Vanguard Wellesley Income Admiral ( VWIAX ) has a high Zacks Mutual Fund rank, and in conjunction with its comparatively strong performance, average downside risk, and lower fees, this fund 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 Mutual Fund Equity Report, make sure to go to www.zacks.com/funds/mutual-funds for additional information. Want to learn even more? We have a full suite of tools on stocks that you can use to find the best choices for your portfolio too, no matter what kind of investor you are.