Is Vanguard Precious Metals & Mining (VGPMX) a good mutual fund choice right now?

Mutual fund stock report fund seekers might consider taking a look at Vanguard Precious Metals & Mining (VGPMX). VGPMX has a Zacks mutual fund ranking of 3 (Hold), which is based on nine predictive factors such as size, cost, and past performance.

Fund/manager history

VGPMX is part of the Vanguard Group family, based in Malvern, Pennsylvania. Vanguard Precious Metals & Mining got its start in May 1984, and since then VGPMX has accumulated approximately $1.36 billion in assets, according to the most recent date available. Keith White is the current fund manager and has held the position since July 2018.

Performance

Investors are naturally looking for high performance funds. This fund has a 5-year annualized total return of 3.05% and is in the bottom third of its peers in the category. But if you’re looking for a shorter timeframe, it’s also worth looking at its 3-year annualized total return of 16.99%, which puts it in the middle third over that timeframe.

When looking at a fund’s performance, it’s also important to note the standard deviation of returns. The lower the standard deviation, the less volatility the fund experiences. Compared to the category average of 17.74%, the standard deviation of VGPMX over the past three years is 19.08%. The fund’s standard deviation over the last 5 years is 18.5% compared to the category average of 15.48%. This makes the fund more volatile than its peers over the past half-decade.

Risk factors

With a 5-year beta of 0.83, the fund should be less volatile than the market average. 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. VGPMX’s 5-year performance produced a negative alpha of -9.02, which means that the managers of this portfolio have difficulty choosing stocks that generate higher returns than those of the benchmark index.

Expenses

For investors, it is essential to take a closer look at the cost parameters, as costs are increasingly important for mutual fund investments. Competition is heating up in this space, and a lower cost product will likely outperform its otherwise identical counterpart, all things being equal. In terms of fees, VGPMX is a no-load fund. It has an expense ratio of 0.35% compared to the category average of 1.34%. Cost-wise, VGPMX is actually cheaper than its peers.

This fund requires a minimum initial investment of $3,000, and each subsequent investment must be at least $1.

Conclusion

Overall, Vanguard Precious Metals & Mining (VGPMX) has a neutral rating from Zacks Mutual Fund, and in conjunction with its relatively poor performance, medium downside risk, and lower fees, this fund currently looks like a reasonable choice. little mean for investors.

For more information on the World Mutual Funds Mutual Funds Stock Report area, be sure to visit www.zacks.com/funds/mutual-funds. There you can learn more about the ranking process and dive even deeper into VGPMX for more information. If you also want to check out our stock reports, be sure to go to Zacks.com to see all the great tools we have to offer, including our proven Zacks Ranking.

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Zacks Investment Research

Dolores W. Simon