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

Any investors hoping to find a Global - Equity fund might consider looking past Vanguard Global Minimum Volatility Fund Admiral (VMNVX). VMNVX bears a Zacks Mutual Fund Rank of 4 (Sell), which is based on various forecasting factors like size, cost, and past performance.ObjectiveWe note that VMNVX is a Global - Equity option, an investment area loaded with different options. While Global - Equity mutual funds invest their assets in large markets--think the U.S., Europe, and Japan--they aren't limited by geography. Their investment technique is one that leverages the global economy in order to offer stable returns.History of Fund/ManagerVMNVX finds itself in the Vanguard Group family, based out of Malvern, PA. Since Vanguard Global Minimum Volatility Fund Admiral made its debut in December of 2013, VMNVX has garnered more than $1.84 billion in assets. The fund is currently managed by John Ameriks who has been in charge of the fund since July of 2022.PerformanceInvestors naturally seek funds with strong performance. VMNVX has a 5-year annualized total return of 5.46% and it sits in the bottom 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 6.59%, which places it in the top 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. Over the past three years, VMNVX's standard deviation comes in at 10.22%, compared to the category average of 15.95%. The fund's standard deviation over the past 5 years is 12.68% compared to the category average of 16.77%. This makes the fund less volatile than its peers over the past half-decade.Risk FactorsWith a 5-year beta of 0.62, 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 has generated a negative alpha over the past five years of -4.5, demonstrating that managers in this portfolio find it difficult to pick securities that generate better-than-benchmark returns.ExpensesAs competition heats up in the mutual fund market, costs become increasingly important. Compared to its otherwise identical counterpart, a low-cost product will be an outperformer, all other things being equal. Thus, taking a closer look at cost-related metrics is vital 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 0.96%. So, VMNVX 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.Fees 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, Vanguard Global Minimum Volatility Fund Admiral ( VMNVX ) has a low Zacks Mutual Fund rank, and therefore looks a somewhat weak choice for investors right now.Don't stop here for your research on Global - Equity 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 VMNVX to its peers as well for additional information. Zacks provides a full suite of tools to help you analyze your portfolio - both funds and stocks - in the most efficient way possible.Zacks' Research Chief Names "Stock Most Likely to Double"Our team of experts has just released the 5 stocks with the greatest probability of gaining +100% or more in the coming months. Of those 5, Director of Research Sheraz Mian highlights the one stock set to climb highest.This top pick is among the most innovative financial firms. With a fast-growing customer base (already 50+ million) and a diverse set of cutting edge solutions, this stock is poised for big gains. Of course, all our elite picks aren’t winners but this one could far surpass earlier Zacks’ Stocks Set to Double like Nano-X Imaging which shot up +129.6% in little more than 9 months.Free: See Our Top Stock And 4 Runners UpWant the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Get Your Free (VMNVX): Fund Analysis ReportTo read this article on Zacks.com click here.Zacks Investment ResearchWeiter zum vollständigen Artikel bei Zacks Weiter zum vollständigen Artikel bei Zacks