Any investors hoping to find a Large Cap Blend fund could think about starting with Vanguard Dividend Growth Inv (VDIGX). VDIGX carries a Zacks Mutual Fund Rank of 2 (Buy), which is based on various forecasting factors like size, cost, and past performance.
VDIGX is classified in the Large Cap Blend segment by Zacks, which is an area full of potential. Targeting companies with market caps of more than $10 billion, Large Cap Blend mutual funds offer a stable investment choice; these funds are perfect for investors with a ‘buy and hold’ mindset. Since blended funds mix large, more established firms into their portfolios, investors are exposed to both value and growth opportunities.
Vanguard Group is based in Malvern, PA, and is the manager of VDIGX. The Vanguard Dividend Growth Inv made its debut in May of 1992 and VDIGX has managed to accumulate roughly $46.35 billion in assets, as of the most recently available information. The fund is currently managed by Peter Fisher who has been in charge of the fund since July of 2022.
Investors naturally seek funds with strong performance. This fund in particular has delivered a 5-year annualized total return of 10.43%, 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 6.92%, which places it in the bottom 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. VDIGX’s standard deviation over the past three years is 12.96% compared to the category average of 16.67%. The fund’s standard deviation over the past 5 years is 13.97% compared to the category average of 16.24%. This makes the fund less volatile than its peers over the past half-decade.
Investors should not forget about beta, an important way to measure a mutual fund’s risk compared to the market as a whole. VDIGX has a 5-year beta of 0.76, which means it is likely to be less volatile than the market average. 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. With a negative alpha of -1.99, managers in this portfolio find it difficult to pick securities that generate better-than-benchmark returns.