Is Vanguard PRIMECAP Core Investor (VPCCX) a Strong Mutual Fund Pick Right Now?

If investors are looking at the Large Cap Growth fund category, Vanguard PRIMECAP Core Investor (VPCCX) could be a potential option. VPCCX holds a Zacks Mutual Fund Rank of 2 (Buy), which is based on various forecasting factors like size, cost, and past performance.ObjectiveWe classify VPCCX in the Large Cap Growth category, an area rife with potential choices. Large Cap Growth funds invest in many large U.S. companies that are expected to grow much faster compared to other large-cap stocks. To be considered large-cap, companies must have a market cap over $10 billion.History of Fund/ManagerVPCCX finds itself in the Vanguard Group family, based out of Malvern, PA. Vanguard PRIMECAP Core Investor debuted in December of 2004. Since then, VPCCX has accumulated assets of about $13.17 billion, according to the most recently available information. The fund's current manager is a team of investment professionals.PerformanceInvestors naturally seek funds with strong performance. This fund has delivered a 5-year annualized total return of 13.89%, and is in the middle third among its category peers. Investors who prefer analyzing shorter time frames should look at its 3-year annualized total return of 9.91%, 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. VPCCX's standard deviation over the past three years is 16.66% compared to the category average of 17.44%. The standard deviation of the fund over the past 5 years is 17.54% compared to the category average of 18.12%. This makes the fund less volatile than its peers over the past half-decade.Risk FactorsInvestors should note that the fund has a 5-year beta of 0.93, so it is likely going to be less volatile than the market at large. Another factor to consider is alpha, as it reflects a portfolio's performance on a risk-adjusted basis relative to a benchmark-in this case, the S&P 500. With a negative alpha of -0.9, managers in this portfolio find it difficult to pick securities that generate better-than-benchmark returns.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, VPCCX is a no load fund. It has an expense ratio of 0.46% compared to the category average of 0.76%. From a cost perspective, VPCCX is actually cheaper than its peers.Investors should also note that the minimum initial investment for the product is $3,000 and that each subsequent investment needs to be at $1Fees charged by investment advisors have not been taken into considiration. Returns would be less if those were included.Bottom LineOverall, Vanguard PRIMECAP Core Investor ( VPCCX ) has a high Zacks Mutual Fund rank, and in conjunction with its comparatively similar performance, average downside risk, and lower fees, this fund looks like a great potential choice for investors right now.Don't stop here for your research on Large Cap Growth 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 VPCCX 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.5 Stocks Set to DoubleEach was handpicked by a Zacks expert as the #1 favorite stock to gain +100% or more in 2024. While not all picks can be winners, previous recommendations have soared +143.0%, +175.9%, +498.3% and +673.0%.Most of the stocks in this report are flying under Wall Street radar, which provides a great opportunity to get in on the ground floor.Today, See These 5 Potential Home Runs >>Want 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 (VPCCX): 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