Mutual Fund Equity Report fund seekers should consider taking a look at Vanguard Tax-Managed Cap Appreciation Admiral (VTCLX). VTCLX holds 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
Vanguard Group is based in Malvern, PA, and is the manager of VTCLX. Vanguard Tax-Managed Cap Appreciation Admiral made its debut in November of 2001, and since then, VTCLX has accumulated about $14.09 billion in assets, per the most up-to-date date available. Awais Khan is the fund's current manager and has held that role since July of 2021.
Investors naturally seek funds with strong performance. This fund carries a 5-year annualized total return of 10.86%, and is in the top 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 9.72%, 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 16%, the standard deviation of VTCLX over the past three years is 18.17%. Over the past 5 years, the standard deviation of the fund is 19.11% compared to the category average of 17.14%. This makes the fund more volatile than its peers over the past half-decade.
The fund has a 5-year beta of 1.02, so investors should note that it is hypothetically as volatile as 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. With a negative alpha of -0.23, managers in this portfolio find it difficult to pick securities that generate better-than-benchmark returns.
Investigating 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 largely on equities that are traded in the United States.
The mutual fund currently has 82.24% of its holdings in stocks and it has 2.11% of assets in foreign securities. The fund has the heaviest exposure to the following market sectors:
- Retail Trade
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, VTCLX is a no load fund. It has an expense ratio of 0.09% compared to the category average of 0.98%. Looking at the fund from a cost perspective, VTCLX is actually cheaper than its peers.
Investors should also note that the minimum initial investment for the product is $10,000 and that each subsequent investment needs to be at $1
Fees charged by investment advisors have not been taken into considiration. Returns would be less if those were included.
Overall, Vanguard Tax-Managed Cap Appreciation Admiral ( VTCLX ) 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.
Don't stop here for your research on Mutual Fund Equity Report funds. We also have plenty more on our site in order to help you find the best possible fund for your portfolio. Make sure to check out www.zacks.com/funds/mutual-funds for more information about the world of funds, and feel free to compare VTCLX to its peers as well for additional information. If you want to check out our stock reports as well, make sure to go to Zacks.com to see all of the great tools we have to offer, including our time-tested Zacks Rank.
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