Any investors hoping to find a Sector – Energy fund could think about starting with Vanguard Energy Investor (VGENX). VGENX possesses a Zacks Mutual Fund Rank of 1 (Strong Buy), which is based on various forecasting factors like size, cost, and past performance.
Objective
VGENX is one of many Sector – Energy funds to choose from. Sector – Energy mutual funds are comprised of various changing and hugely important industries throughout the massive global energy sector. Even though clean energy is beginning to pick up steam, oil and gas companies have the highest exposure, but carbon-based fuels will be the biggest group of assets in these funds.
History of Fund/Manager
VGENX is a part of the Vanguard Group family of funds, a company based out of Malvern, PA. Since Vanguard Energy Investor made its debut in May of 1984, VGENX has garnered more than $1.80 billion in assets. The fund’s current manager, G. Thomas Levering, has been in charge of the fund since January of 2020.
Performance
Obviously, what investors are looking for in these funds is strong performance relative to their peers. This fund in particular has delivered a 5-year annualized total return of 18.04%, and is 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 13.21%, 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, VGENX’s standard deviation comes in at 11.83%, compared to the category average of 14.15%. The fund’s standard deviation over the past 5 years is 15.52% compared to the category average of 18.2%. This makes the fund less volatile than its peers over the past half-decade.
Risk Factors
With a 5-year beta of 0.53, the fund is likely to be less volatile than the market average. Alpha is an additional metric to take into consideration, since it represents a portfolio’s performance on a risk-adjusted basis relative to a benchmark, which in this case, is the S&P 500. VGENX’s 5-year performance has produced a positive alpha of 8.94, which means managers in this portfolio are skilled in picking securities that generate better-than-benchmark returns.