Is Invesco Equally-Weighted S&P 500 A (VADAX) a Strong Mutual Fund Pick Right Now?

Any investors hoping to find a Large Cap Blend fund could think about starting with Invesco Equally-Weighted S&P 500 A (VADAX). VADAX holds a Zacks Mutual Fund Rank of 2 (Buy), which is based on various forecasting factors like size, cost, and past performance.ObjectiveWe note that VADAX is a Large Cap Blend option, an area loaded with different options. More often than not, Large Cap Blend mutual funds invest in companies with a market cap of over $10 billion. Buying stakes in bigger companies offer these funds more stability, and are well-suited for investors with a " buy and hold " mindset. Additionally, blended funds mix large, more established firms into their portfolios, giving investors exposure to value and growth opportunities.History of Fund/ManagerVADAX finds itself in the Invesco family, based out of Kansas City, MO. The Invesco Equally-Weighted S&P 500 A made its debut in July of 1997 and VADAX has managed to accumulate roughly $3.28 billion in assets, as of the most recently available information. The fund is currently managed by a team of investment professionals.PerformanceInvestors naturally seek funds with strong performance. VADAX has a 5-year annualized total return of 11.62% and is in the bottom third among its category peers. Investors who prefer analyzing shorter time frames should look at its 3-year annualized total return of 7.61%, which places it in the bottom 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. VADAX's standard deviation over the past three years is 18.27% compared to the category average of 14.98%. Looking at the past 5 years, the fund's standard deviation is 19.92% compared to the category average of 15.72%. This makes the fund more volatile than its peers over the past half-decade.Risk FactorsThe fund has a 5-year beta of 1.04, so investors should note that it is hypothetically more 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. With a negative alpha of -4, managers in this portfolio find it difficult to pick securities that generate better-than-benchmark returns.HoldingsExamining 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 75.06% of its holdings in stocks, and these companies have an average market capitalization of $82.23 billion. The fund has the heaviest exposure to the following market sectors: Finance Technology Industrial Cyclical Non-Durable With turnover at about 20%, this fund makes fewer trades than the average comparable fund.ExpensesCosts 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, VADAX is a load fund. It has an expense ratio of 0.55% compared to the category average of 0.91%. VADAX is actually cheaper than its peers when you consider factors like cost.Investors should also note that the minimum initial investment for the product is $1,000 and that each subsequent investment needs to be at $50Fees charged by investment advisors have not been taken into considiration. Returns would be less if those were included.Bottom LineOverall, even with its comparatively weak performance, average downside risk, and lower fees, Invesco Equally-Weighted S&P 500 A ( VADAX ) has a high Zacks Mutual Fund rank, and therefore looks a great potential choice for investors right now.Want even more information about VADAX? Then go over to Zacks.com and check out our mutual fund comparison tool, and all of the other great features that we have to help you with your mutual fund analysis for additional information. And don't forget, Zacks has all of your needs covered on the equity side too! 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