Any investors who are searching for Non US – Equity funds should take a look at Vanguard Total International Stock Index Fund (VGTSX). While this fund is not tracked by the Zacks Mutual Fund Rank, we were able to examine other factors like performance, volatility, and cost.
Objective
Zacks categorizes VGTSX as Non US – Equity, a segment stacked high with options. Non US – Equity mutual funds like to invest in companies outside of the United States, an important characteristic since global mutual funds are known to keep a good portion of their portfolio stateside. These kinds of funds can often extend across all cap levels, and will typically allocate their investments between emerging and developed markets.
History of Fund/Manager
VGTSX is a part of the Vanguard Group family of funds, a company based out of Malvern, PA. Since Vanguard Total International Stock Index Fund made its debut in April of 1996, VGTSX has garnered more than $274.74 billion in assets. A team of investment professionals is the fund’s current manager.
Performance
Investors naturally seek funds with strong performance. This fund carries a 5-year annualized total return of 9.04%, and it sits in the middle third among its category peers. Investors who prefer analyzing shorter time frames should look at its 3-year annualized total return of 19.72%, 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. Over the past three years, VGTSX’s standard deviation comes in at 12.03%, compared to the category average of 11.39%. The standard deviation of the fund over the past 5 years is 15.08% compared to the category average of 13.4%. This makes the fund more volatile than its peers over the past half-decade.
Risk Factors
The fund has a 5-year beta of 0.77, so investors should note that it is hypothetically less volatile than 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. VGTSX has generated a negative alpha over the past five years of -1.41, demonstrating that managers in this portfolio find it difficult to pick securities that generate better-than-benchmark returns.