Is Vanguard International Growth Admiral (VWILX) a Strong Mutual Fund Pick Right Now?

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If you’ve been stuck searching for Non US – Equity funds, consider Vanguard International Growth Admiral (VWILX) as a possibility. VWILX holds a Zacks Mutual Fund Rank of 1 (Strong Buy), which is based on nine forecasting factors like size, cost, and past performance.

Load Error

Objective

Zacks categorizes VWILX 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

Vanguard Group is based in Malvern, PA, and is the manager of VWILX. Since Vanguard International Growth Admiral made its debut in August of 2001, VWILX has garnered more than $57.73 billion in assets. A team of investment professionals is the fund’s current manager.

Performance

Investors naturally seek funds with strong performance. VWILX has a 5-year annualized total return of 22% and it sits in the top 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 20.67%, 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. The standard deviation of VWILX over the past three years is 21.17% compared to the category average of 16.22%. The standard deviation of the fund over the past 5 years is 17.83% compared to the category average of 13.79%. This makes the fund more volatile than its peers over the past half-decade.

Risk Factors

With a 5-year beta of 0.97, the fund is likely to be as volatile as 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. VWILX’s 5-year performance has produced a positive alpha of 5.89, which means managers in this portfolio are skilled in picking securities that generate better-than-benchmark returns.

Expenses

For investors, taking a closer look at cost-related metrics is key, since costs are increasingly important for mutual fund investing. Competition is heating up in this space, and a lower cost product will likely outperform its otherwise identical counterpart, all things being equal. In terms of fees, VWILX is a no load fund. It has an expense ratio of 0.33% compared to the category average of 1.19%. From a cost perspective, VWILX is actually cheaper than its peers.

While the minimum initial investment for the product is $50,000, investors should also note that each subsequent investment needs to be at least $1.

Bottom Line

Overall, Vanguard International Growth Admiral ( VWILX ) has a high Zacks Mutual Fund rank, and in conjunction with its comparatively strong performance, average downside risk, and lower fees, Vanguard International Growth Admiral ( VWILX ) looks like a good potential choice for investors right now.

Want even more information about VWILX? Then go over to Zacks.com and check out our mutual fund comparison tool, and all of the other great features that we have to help you with your mutual fund analysis for additional information. If you want to check out our stock reports as well, make sure to go to Zacks.com to see all of the great tools we have to offer, including our time-tested Zacks Rank.

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