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There are plenty of choices in the Mutual Fund Bond category, but where should you start your research? Well, one fund that might be worth investigating is Vanguard NY Long-Term Tax-Exempt Investor (VNYTX - Free Report) . VNYTX carries a Zacks Mutual Fund Rank of 2 (Buy), which is based on nine forecasting factors like size, cost, and past performance.
History of Fund/Manager
Vanguard Group is responsible for VNYTX, and the company is based out of Malvern, PA. The Vanguard NY Long-Term Tax-Exempt Investor made its debut in April of 1986 and VNYTX has managed to accumulate roughly $439.05 million in assets, as of the most recently available information. The fund's current manager, Adam Ferguson, has been in charge of the fund since June of 2013.
Performance
Investors naturally seek funds with strong performance. This fund carries a 5-year annualized total return of 1.76%, 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 0.29%, 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. Over the past three years, VNYTX's standard deviation comes in at 5.85%, compared to the category average of 10.23%. Looking at the past 5 years, the fund's standard deviation is 4.87% compared to the category average of 8.89%. This makes the fund less volatile than its peers over the past half-decade.
VNYTX carries a beta of 0.9, meaning that the fund is less volatile than a broad market index of fixed income securities. With this in mind, it has a negative alpha of -0.13, which measures performance on a risk-adjusted basis.
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, VNYTX is a no load fund. It has an expense ratio of 0.17% compared to the category average of 0.79%. From a cost perspective, VNYTX is actually cheaper than its peers.
While the minimum initial investment for the product is $3,000, investors should also note that each subsequent investment needs to be at least $1.
Bottom Line
Overall, Vanguard NY Long-Term Tax-Exempt Investor ( VNYTX ) has a high Zacks Mutual Fund rank, and in conjunction with its comparatively strong performance, average downside risk, and lower fees, this fund looks like a good potential choice for investors right now.
Don't stop here for your research on Mutual Fund Bond funds. We also have plenty more on our site in order to help you find the best possible fund for your portfolio. Make sure to check out www.zacks.com/funds/mutual-funds for more information about the world of funds, and feel free to compare VNYTX to its peers as well for additional information. And don't forget, Zacks has all of your needs covered on the equity side too! Make sure to check out Zacks.com for more information on our screening capabilities, Rank, and all our articles as well.
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Is VNYTX a Strong Bond Fund Right Now?
There are plenty of choices in the Mutual Fund Bond category, but where should you start your research? Well, one fund that might be worth investigating is Vanguard NY Long-Term Tax-Exempt Investor (VNYTX - Free Report) . VNYTX carries a Zacks Mutual Fund Rank of 2 (Buy), which is based on nine forecasting factors like size, cost, and past performance.
History of Fund/Manager
Vanguard Group is responsible for VNYTX, and the company is based out of Malvern, PA. The Vanguard NY Long-Term Tax-Exempt Investor made its debut in April of 1986 and VNYTX has managed to accumulate roughly $439.05 million in assets, as of the most recently available information. The fund's current manager, Adam Ferguson, has been in charge of the fund since June of 2013.
Performance
Investors naturally seek funds with strong performance. This fund carries a 5-year annualized total return of 1.76%, 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 0.29%, 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. Over the past three years, VNYTX's standard deviation comes in at 5.85%, compared to the category average of 10.23%. Looking at the past 5 years, the fund's standard deviation is 4.87% compared to the category average of 8.89%. This makes the fund less volatile than its peers over the past half-decade.
VNYTX carries a beta of 0.9, meaning that the fund is less volatile than a broad market index of fixed income securities. With this in mind, it has a negative alpha of -0.13, which measures performance on a risk-adjusted basis.
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, VNYTX is a no load fund. It has an expense ratio of 0.17% compared to the category average of 0.79%. From a cost perspective, VNYTX is actually cheaper than its peers.
While the minimum initial investment for the product is $3,000, investors should also note that each subsequent investment needs to be at least $1.
Bottom Line
Overall, Vanguard NY Long-Term Tax-Exempt Investor ( VNYTX ) has a high Zacks Mutual Fund rank, and in conjunction with its comparatively strong performance, average downside risk, and lower fees, this fund looks like a good potential choice for investors right now.
Don't stop here for your research on Mutual Fund Bond funds. We also have plenty more on our site in order to help you find the best possible fund for your portfolio. Make sure to check out www.zacks.com/funds/mutual-funds for more information about the world of funds, and feel free to compare VNYTX to its peers as well for additional information. And don't forget, Zacks has all of your needs covered on the equity side too! Make sure to check out Zacks.com for more information on our screening capabilities, Rank, and all our articles as well.