We use cookies to understand how you use our site and to improve your experience. This includes personalizing content and advertising. To learn more, click here. By continuing to use our site, you accept our use of cookies, revised Privacy Policy and Terms of Service.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
Any investors hoping to find a Mutual Fund Bond fund could think about starting with Vanguard Intermediate-Term Tax-Exempt Admiral (VWIUX - Free Report) . VWIUX has a Zacks Mutual Fund Rank of 1 (Strong Buy), which is based on various forecasting factors like size, cost, and past performance.
History of Fund/Manager
Vanguard Group is based in Malvern, PA, and is the manager of VWIUX. The Vanguard Intermediate-Term Tax-Exempt Admiral made its debut in February of 2001 and VWIUX has managed to accumulate roughly $63.98 billion in assets, as of the most recently available information. The fund is currently managed by James D'Arcy who has been in charge of the fund since June of 2013.
Performance
Of course, investors look for strong performance in funds. VWIUX has a 5-year annualized total return of 1.32% and it sits in the top third among its category peers. If you're interested in shorter time frames, do not dismiss looking at the fund's 3 -year annualized total return of -1.82%, which places it in the top 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. Over the past three years, VWIUX's standard deviation comes in at 5.43%, compared to the category average of 9.84%. Over the past 5 years, the standard deviation of the fund is 5.01% compared to the category average of 10.25%. This makes the fund less volatile than its peers over the past half-decade.
With a beta of 0.76, this fund is less volatile than a broad market index of fixed income securities. Taking this into account, VWIUX has a positive alpha of 0.18, which measures performance on a risk-adjusted basis.
Ratings
Investors should also consider a bond's rating, which is a grade ( 'AAA' to 'D' ) given to a bond that indicates its credit quality. With this letter scale in mind, VWIUX has 59.38% in high quality bonds rated at least 'AA' or higher, while 35.81% are of medium quality, with ratings of 'A' to 'BBB'. The fund has an average quality of AA, and focuses on high quality securities.
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, VWIUX is a no load fund. It has an expense ratio of 0.09% compared to the category average of 0.78%. From a cost perspective, VWIUX 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.
Fees charged by investment advisors have not been taken into considiration. Returns would be less if those were included.
Bottom Line
Overall, Vanguard Intermediate-Term Tax-Exempt Admiral ( VWIUX ) has a high Zacks Mutual Fund rank, and in conjunction with its comparatively strong performance, better downside risk, and lower fees, Vanguard Intermediate-Term Tax-Exempt Admiral ( VWIUX ) looks like a good potential choice for investors right now.
This could just be the start of your research on VWIUXin the Mutual Fund Bond category. Consider going to www.zacks.com/funds/mutual-funds for additional information about this fund, and all the others that we rank as well for additional information. If you are more of a stock investor, make sure to also check out our Zacks Rank, and our full suite of tools we have available for novice and professional investors alike.
See More Zacks Research for These Tickers
Normally $25 each - click below to receive one report FREE:
Image: Bigstock
Is VWIUX a Strong Bond Fund Right Now?
Any investors hoping to find a Mutual Fund Bond fund could think about starting with Vanguard Intermediate-Term Tax-Exempt Admiral (VWIUX - Free Report) . VWIUX has a Zacks Mutual Fund Rank of 1 (Strong Buy), which is based on various forecasting factors like size, cost, and past performance.
History of Fund/Manager
Vanguard Group is based in Malvern, PA, and is the manager of VWIUX. The Vanguard Intermediate-Term Tax-Exempt Admiral made its debut in February of 2001 and VWIUX has managed to accumulate roughly $63.98 billion in assets, as of the most recently available information. The fund is currently managed by James D'Arcy who has been in charge of the fund since June of 2013.
Performance
Of course, investors look for strong performance in funds. VWIUX has a 5-year annualized total return of 1.32% and it sits in the top third among its category peers. If you're interested in shorter time frames, do not dismiss looking at the fund's 3 -year annualized total return of -1.82%, which places it in the top 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. Over the past three years, VWIUX's standard deviation comes in at 5.43%, compared to the category average of 9.84%. Over the past 5 years, the standard deviation of the fund is 5.01% compared to the category average of 10.25%. This makes the fund less volatile than its peers over the past half-decade.
With a beta of 0.76, this fund is less volatile than a broad market index of fixed income securities. Taking this into account, VWIUX has a positive alpha of 0.18, which measures performance on a risk-adjusted basis.
Ratings
Investors should also consider a bond's rating, which is a grade ( 'AAA' to 'D' ) given to a bond that indicates its credit quality. With this letter scale in mind, VWIUX has 59.38% in high quality bonds rated at least 'AA' or higher, while 35.81% are of medium quality, with ratings of 'A' to 'BBB'. The fund has an average quality of AA, and focuses on high quality securities.
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, VWIUX is a no load fund. It has an expense ratio of 0.09% compared to the category average of 0.78%. From a cost perspective, VWIUX 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.
Fees charged by investment advisors have not been taken into considiration. Returns would be less if those were included.
Bottom Line
Overall, Vanguard Intermediate-Term Tax-Exempt Admiral ( VWIUX ) has a high Zacks Mutual Fund rank, and in conjunction with its comparatively strong performance, better downside risk, and lower fees, Vanguard Intermediate-Term Tax-Exempt Admiral ( VWIUX ) looks like a good potential choice for investors right now.
This could just be the start of your research on VWIUXin the Mutual Fund Bond category. Consider going to www.zacks.com/funds/mutual-funds for additional information about this fund, and all the others that we rank as well for additional information. If you are more of a stock investor, make sure to also check out our Zacks Rank, and our full suite of tools we have available for novice and professional investors alike.