Is Vanguard Global Minimum Volatility Fund Admiral (VMNVX) A Strong Mutual Fund Pick Right Now?

Having trouble finding a Global - Equity fund? Vanguard Global Minimum Volatility Fund Admiral (VMNVX) is a potential starting point. VMNVX holds a Zacks Mutual Fund Rank of 1 (Strong Buy), which is based on nine forecasting factors like size, cost, and past performance.

Objective

Zacks categorizes VMNVX as Global - Equity, which is a segment packed with options. Global - Equity mutual funds invest in large markets like the U.S., Europe, and Japan, and operate with very few geographical limitations. They also provide an investment technique that leverages the diverse nature of the global economy in the hopes of providing a stable return.

History of Fund/Manager

Vanguard Group is based in Malvern, PA, and is the manager of VMNVX. Vanguard Global Minimum Volatility Fund Admiral debuted in December of 2013. Since then, VMNVX has accumulated assets of about $3.66 billion, according to the most recently available information. The fund is currently managed by Antonio Picca who has been in charge of the fund since November of 2018.

Performance

Of course, investors look for strong performance in funds. VMNVX has a 5-year annualized total return of 9.85% 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 11.88%, 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. Over the past three years, VMNVX's standard deviation comes in at 7.32%, compared to the category average of 10.61%. The standard deviation of the fund over the past 5 years is 7.19% compared to the category average of 10.85%. This makes the fund less volatile than its peers over the past half-decade.

Risk Factors

Investors should always remember the downsides to a potential investment, and this segment carries some risks one should be aware of.

Nevertheless, with a 5-year beta of 0.54, the fund is likely to be less volatile than the market average. 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. VMNVX's 5-year performance has produced a positive alpha of 2.49, which means managers in this portfolio are skilled in picking securities that generate better-than-benchmark returns.

Expenses

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, VMNVX is a no load fund. It has an expense ratio of 0.14% compared to the category average of 1.18%. From a cost perspective, VMNVX is actually cheaper than its peers.

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.

Bottom Line

Overall, Vanguard Global Minimum Volatility Fund Admiral ( VMNVX ) has a high Zacks Mutual Fund rank, and in conjunction with its comparatively strong performance, average downside risk, and lower fees, Vanguard Global Minimum Volatility Fund Admiral ( VMNVX ) 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 Global - Equity, 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.