Is Vanguard Health Care Index Admiral (VHCIX) the Strongest Mutual Fund to Pick Right Now?

Are you on the hunt for a Sector – Health fund? You should consider starting with the Vanguard Health Care Index Admiral (VHCIX). The fund does not have a Zacks Mutual Fund Rank, although we have been able to evaluate other factors such as performance, volatility and expense.

The goal

We note that VHCIX is a Sector – Health fund, and this area also has different options. Sector – Health mutual funds give investors the opportunity to focus on one of the largest sectors of the American economy, health care. Funds in this category can include everything from for-profit hospitals to pharmaceutical companies and medical device manufacturers.

Fund/Manager History

Vanguard Group is responsible for VHCIX, and the company is based in Malvern, PA. Vanguard Health Care Index Admiral was launched in January 2004 and VHCIX was able to accumulate assets of about $2.95 billion, according to the latest available information. The current manager of the fund, Walter Nejman, has been in charge of the fund since December 2015.

Performance

It is clear that what investors are looking for in these funds is strong performance relative to their peers. The fund has delivered a 5-year annualized return of 11.38%, ranking third best among its peer group. Investors who choose to analyze short-term time frames should look at its 3-year annualized average of 3.77%, which ranks third highest during this time period.

It is important to note that a product’s returns may not reflect its full cost. Any missed payments may reduce earnings. The total amount is not indicative of the fund [%] sales charge. If sales charges were included, the total amount would be lower.

When looking at a fund’s performance, it is also important to take into account the standard deviation of returns. The lower the standard deviation, the less experienced the fund is. Over the past three years, the standard deviation of VHCIX has reached 14.73%, compared to the group average of 0%. The fund’s average return over the past 5 years is 15.15% compared to the group average of 6%. This makes the fund more volatile than its peers over the past half year.

Hazardous Materials

Traders should note that the fund has a 5-year beta of 0.71, so it is likely to underperform the overall market. Another factor to consider is alpha, as it reflects the portfolio’s risk-adjusted performance relative to a benchmark—in this case, the S&P 500. Over the past 5 years, the fund has had an alpha of except for 0.23. This means that the managers of this portfolio have the skills to select securities that generate better returns than the benchmark.

The story continues

Expenses

For investors, looking at metrics related to expenses is important, as expenses are still very important for mutual fund investments. Competition is growing in this area, and the cheapest product is likely to outperform its equivalent, all things being equal. In terms of fees, VHCIX is a no-load fund. It has an expense ratio of 0.10% compared to a group average of 73%. Thus, VHCIX is actually cheaper than its peers from a cost perspective.

Although the minimum initial investment for the product is $100,000, investors should note that each subsequent investment requires at least $1.

Fees charged by investment advisers were not considered. Funds would be limited if included.

The stage is below

For more information on the Sector – Health area of ​​the mutual fund world, be sure to check out www.zacks.com/funds/mutual-funds. There, you can see more about the ranking process, and dive into VHCIX again for more information. Want to learn more? We have many resources about stocks that you can use to find the best options for your portfolio, no matter what type of investor you are.

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