Is Vanguard Global Mineral Volatility Investor (VMVFX) a Strong Mutual Fund Pick Right Now?

Global – Equity fund seekers should consider taking a look at Vanguard Global Mineral Volatility Investor (VMVFX). VMVFX holds a Zacks Mutual Fund Rank of 1 (Strong Buy), which is based on various forecasting factors like size, cost, and past performance.

VMVFX is classified in the Global – Equity segment by Zacks, an area full of possibilities. Even though Global – Equity mutual funds invest in bigger markets like the U.S., Europe, and Japan, these kinds of funds aren’t limited by geography. Rather, they offer an investment strategy that utilizes the global economy to provide stable returns.

Vanguard Group is based in Malvern, PA, and is the manager of VMVFX. Vanguard Global Mineral Volatility Investor made its debut in December of 2013, and since then, VMVFX has accumulated about $231.03 million in assets, per the most up-to-date date available. Scott Rodemer is the fund’s current manager and has held that role since March of 2023.

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 9.12%, 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 11.18%, 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. VMVFX’s standard deviation over the past three years is 9.5% compared to the category average of 15.26%. Over the past 5 years, the standard deviation of the fund is 9.57% compared to the category average of 14.89%. This makes the fund less volatile than its peers over the past half-decade.

The fund has a 5-year beta of 0.49, so investors should note that it is hypothetically less volatile than the market at large. 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. VMVFX’s 5-year performance has produced a negative alpha of -0.43, which means managers in this portfolio find it difficult to pick securities that generate better-than-benchmark returns.