If investors are looking at the Mutual Fund Equity Report fund category, Vanguard Tax-Managed Cap Appreciation Institutional (VTCIX) could be a potential option. VTCIX carries a Zacks Mutual Fund Rank of 1 (Strong Buy), which is based on nine forecasting factors like size, cost, and past performance.
History of Fund/Manager
Vanguard Group is responsible for VTCIX, and the company is based out of Malvern, PA. Vanguard Tax-Managed Cap Appreciation Institutional debuted in February of 1999. Since then, VTCIX has accumulated assets of about $2.34 billion, according to the most recently available information. William Coleman is the fund's current manager and has held that role since April of 2016.
Performance
Obviously, what investors are looking for in these funds is strong performance relative to their peers. VTCIX has a 5-year annualized total return of 19.39% and it sits in the top third among its category peers. Investors who prefer analyzing shorter time frames should look at its 3-year annualized total return of 22.15%, which places it in the top third during this time-frame.
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, VTCIX's standard deviation comes in at 18.95%, compared to the category average of 17.23%. The fund's standard deviation over the past 5 years is 15.73% compared to the category average of 14.11%. This makes the fund more volatile than its peers over the past half-decade.
Risk Factors
Investors should note that the fund has a 5-year beta of 1.02, which means it is hypothetically as volatile as 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. VTCIX's 5-year performance has produced a positive alpha of 0.08, which means managers in this portfolio are skilled in picking securities that generate better-than-benchmark returns.
Holdings
Investigating the equity holdings of a mutual fund is also a valuable exercise. This can show us how the manager is applying their stated methodology, as well as if there are any inherent biases in their approach. For this particular fund, the focus is largely on equities that are traded in the United States.
Currently, this mutual fund is holding 98.24% stock in stocks, and these companies have an average market capitalization of $320.90 billion. The fund has the heaviest exposure to the following market sectors: