Any investors hoping to find a Large Cap Blend fund could think about starting with Invesco Equally-Weighted S&P 500 A (VADAX). VADAX holds a Zacks Mutual Fund Rank of 2 (Buy), which is based on various forecasting factors like size, cost, and past performance.

Objective

We note that VADAX is a Large Cap Blend option, an area loaded with different options. More often than not, Large Cap Blend mutual funds invest in companies with a market cap of over $10 billion. Buying stakes in bigger companies offer these funds more stability, and are well-suited for investors with a " buy and hold " mindset. Additionally, blended funds mix large, more established firms into their portfolios, giving investors exposure to value and growth opportunities.

History of Fund/Manager

VADAX finds itself in the Invesco family, based out of Kansas City, MO. The Invesco Equally-Weighted S&P 500 A made its debut in July of 1997 and VADAX has managed to accumulate roughly $3.28 billion in assets, as of the most recently available information. The fund is currently managed by a team of investment professionals.

Performance

Investors naturally seek funds with strong performance. VADAX has a 5-year annualized total return of 11.62% and is in the bottom third among its category peers. Investors who prefer analyzing shorter time frames should look at its 3-year annualized total return of 7.61%, 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. VADAX's standard deviation over the past three years is 18.27% compared to the category average of 14.98%. Looking at the past 5 years, the fund's standard deviation is 19.92% compared to the category average of 15.72%. This makes the fund more volatile than its peers over the past half-decade.

Risk Factors

The fund has a 5-year beta of 1.04, so investors should note that it is hypothetically more volatile than the market at large. Because alpha represents a portfolio's performance on a risk-adjusted basis relative to a benchmark, which is the S&P 500 in this case, one should pay attention to this metric as well. With a negative alpha of -4, managers in this portfolio find it difficult to pick securities that generate better-than-benchmark returns.