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If investors are looking at the Mutual Fund Bond fund category, Vanguard Long-Term Treasury Investor (VUSTX - Free Report) could be a potential option. VUSTX holds 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
VUSTX is a part of the Vanguard Group family of funds, a company based out of Malvern, PA. Vanguard Long-Term Treasury Investor made its debut in May of 1986, and since then, VUSTX has accumulated about $624.65 million in assets, per the most up-to-date date available. John Madziyire is the fund's current manager and has held that role since November of 2021.
Performance
Of course, investors look for strong performance in funds. VUSTX has a 5-year annualized total return of 1.66% and is in the middle 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 0.83%, 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 VUSTX over the past three years is 14.41% compared to the category average of 15.39%. Over the past 5 years, the standard deviation of the fund is 12.34% compared to the category average of 13.45%. This makes the fund less volatile than its peers over the past half-decade.
VUSTX carries a beta of 2.95, meaning that the fund is more volatile than a broad market index of fixed income securities. With this in mind, it has a positive alpha of 0.73, which measures performance on a risk-adjusted basis.
Expenses
As competition heats up in the mutual fund market, costs become increasingly important. Compared to its otherwise identical counterpart, a low-cost product will be an outperformer, all other things being equal. Thus, taking a closer look at cost-related metrics is vital for investors. In terms of fees, VUSTX is a no load fund. It has an expense ratio of 0.20% compared to the category average of 0.80%. VUSTX is actually cheaper than its peers when you consider factors like cost.
This fund requires a minimum initial investment of $3,000, and each subsequent investment should be at least $1.
Bottom Line
Overall, Vanguard Long-Term Treasury Investor ( VUSTX ) has a high Zacks Mutual Fund rank, and in conjunction with its comparatively similar performance, average downside risk, and lower fees, Vanguard Long-Term Treasury Investor ( VUSTX ) 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 VUSTX to its peers as well for additional information. Zacks provides a full suite of tools to help you analyze your portfolio - both funds and stocks - in the most efficient way possible.
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Is VUSTX a Strong Bond Fund Right Now?
If investors are looking at the Mutual Fund Bond fund category, Vanguard Long-Term Treasury Investor (VUSTX - Free Report) could be a potential option. VUSTX holds 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
VUSTX is a part of the Vanguard Group family of funds, a company based out of Malvern, PA. Vanguard Long-Term Treasury Investor made its debut in May of 1986, and since then, VUSTX has accumulated about $624.65 million in assets, per the most up-to-date date available. John Madziyire is the fund's current manager and has held that role since November of 2021.
Performance
Of course, investors look for strong performance in funds. VUSTX has a 5-year annualized total return of 1.66% and is in the middle 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 0.83%, 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 VUSTX over the past three years is 14.41% compared to the category average of 15.39%. Over the past 5 years, the standard deviation of the fund is 12.34% compared to the category average of 13.45%. This makes the fund less volatile than its peers over the past half-decade.
VUSTX carries a beta of 2.95, meaning that the fund is more volatile than a broad market index of fixed income securities. With this in mind, it has a positive alpha of 0.73, which measures performance on a risk-adjusted basis.
Expenses
As competition heats up in the mutual fund market, costs become increasingly important. Compared to its otherwise identical counterpart, a low-cost product will be an outperformer, all other things being equal. Thus, taking a closer look at cost-related metrics is vital for investors. In terms of fees, VUSTX is a no load fund. It has an expense ratio of 0.20% compared to the category average of 0.80%. VUSTX is actually cheaper than its peers when you consider factors like cost.
This fund requires a minimum initial investment of $3,000, and each subsequent investment should be at least $1.
Bottom Line
Overall, Vanguard Long-Term Treasury Investor ( VUSTX ) has a high Zacks Mutual Fund rank, and in conjunction with its comparatively similar performance, average downside risk, and lower fees, Vanguard Long-Term Treasury Investor ( VUSTX ) 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 VUSTX to its peers as well for additional information. Zacks provides a full suite of tools to help you analyze your portfolio - both funds and stocks - in the most efficient way possible.