Vanguard Windsor-II Investor (VWNFX) shows promise with strong performance and low fees, making it a solid option for investors.
VWNFX is one of many options in the Large Cap Value category. These funds invest in big companies, usually worth over $10 billion, that might be undervalued. They often have lower price-to-earnings ratios and higher dividend yields, but their growth can be slower since they’re in more stable industries. So, if you’re after a steady income, these funds can be pretty appealing.
This fund is part of the Vanguard Group, based in Malvern, PA. It started back in June 1985 and has grown to about $11.62 billion in assets. A team of investment pros manages it, so you know there’s some expertise behind it.
When it comes to performance, VWNFX has a 5-year annualized total return of 12.1%, putting it in the top third of its peers. If you look at the 3-year return, it’s at 6.25%, which isn’t as impressive, landing in the bottom third. Just keep in mind that returns can be affected by fees, which aren’t always included in the total returns.
Also, the fund’s standard deviation over the last three years is 16.44%, which is a bit higher than the category average. This means it’s been a bit more volatile than others in its group. Over five years, it’s also shown more volatility compared to its peers.
In terms of risk, VWNFX has a beta of 0.99, meaning it’s about as volatile as the market. Its alpha over the past five years is -1.9, indicating that the managers have struggled to pick stocks that outperform the benchmark, which is the S&P 500.
When it comes to expenses, VWNFX is a no-load fund with an expense ratio of 0.33%, which is lower than the category average of 0.93%. This makes it a more cost-effective choice compared to similar funds. You’ll need a minimum investment of $3,000 to get started, and any additional investments can be as low as $1.
Overall, Vanguard Windsor-II Investor (VWNFX) has a strong Zacks Mutual Fund rank, decent performance, manageable risk, and lower fees. It looks like a solid pick for investors right now. If you want to dive deeper into this fund or compare it with others, check out Zacks.com for more info.
