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If you have been looking for Investment Grade Bond - Intermediate fund category, a potential starting could be Vanguard Intermediate-Term Investment-Grade Admiral (VFIDX - Free Report) . VFIDX holds a Zacks Mutual Fund Rank of 3 (Hold), which is based on various forecasting factors like size, cost, and past performance.
Objective
We note that VFIDX is an Investment Grade Bond - Intermediate option, which is a segment loaded with many different investment options. By targeting bonds that mature in more than three years but less than 15 years, Investment Grade Bond - Intermediate funds are a middle of the curve option. Fixed income instruments at this maturity level usually have medium duration risk, but their yields are respectable, especially in comparison to their short-maturity counterparts. Additionally, a focus on investment grade makes these funds safer, but yields tend to be lower than in the junk bond category.
History of Fund/Manager
Vanguard Group is based in Malvern, PA, and is the manager of VFIDX. Vanguard Intermediate-Term Investment-Grade Admiral debuted in February of 2001. Since then, VFIDX has accumulated assets of about $30.50 billion, according to the most recently available information. Daniel Shaykevich is the fund's current manager and has held that role since April of 2018.
Performance
Of course, investors look for strong performance in funds. VFIDX has a 5-year annualized total return of 1.08% 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 -2.57%, which places it in the middle 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. VFIDX's standard deviation over the past three years is 8.67% compared to the category average of 11.39%. The standard deviation of the fund over the past 5 years is 7.62% compared to the category average of 11.88%. This makes the fund less volatile than its peers over the past half-decade.
This fund has a beta of 1.03, meaning that it is more volatile than a broad market index of fixed income securities. Taking this into account, VFIDX has a positive alpha of 1.7, which measures performance on a risk-adjusted basis.
Expenses
Costs are increasingly important for mutual fund investing, and particularly as competition heats up in this market. And all things being equal, a lower cost product will outperform its otherwise identical counterpart, so taking a closer look at these metrics is key for investors. In terms of fees, VFIDX is a no load fund. It has an expense ratio of 0.10% compared to the category average of 0.77%. So, VFIDX is actually cheaper than its peers from a cost perspective.
Investors should also note that the minimum initial investment for the product is $50,000 and that each subsequent investment needs to be at $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 Investment-Grade Admiral ( VFIDX ) has a neutral Zacks Mutual Fund rank, and in conjunction with its comparatively similar performance, average downside risk, and lower fees, Vanguard Intermediate-Term Investment-Grade Admiral ( VFIDX ) looks like a somewhat average choice for investors right now.
For additional information on the Investment Grade Bond - Intermediate area of the mutual fund world, make sure to check out www.zacks.com/funds/mutual-funds. There, you can see more about the ranking process, and dive even deeper into VFIDX too 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 VFIDX a Strong Bond Fund Right Now?
If you have been looking for Investment Grade Bond - Intermediate fund category, a potential starting could be Vanguard Intermediate-Term Investment-Grade Admiral (VFIDX - Free Report) . VFIDX holds a Zacks Mutual Fund Rank of 3 (Hold), which is based on various forecasting factors like size, cost, and past performance.
Objective
We note that VFIDX is an Investment Grade Bond - Intermediate option, which is a segment loaded with many different investment options. By targeting bonds that mature in more than three years but less than 15 years, Investment Grade Bond - Intermediate funds are a middle of the curve option. Fixed income instruments at this maturity level usually have medium duration risk, but their yields are respectable, especially in comparison to their short-maturity counterparts. Additionally, a focus on investment grade makes these funds safer, but yields tend to be lower than in the junk bond category.
History of Fund/Manager
Vanguard Group is based in Malvern, PA, and is the manager of VFIDX. Vanguard Intermediate-Term Investment-Grade Admiral debuted in February of 2001. Since then, VFIDX has accumulated assets of about $30.50 billion, according to the most recently available information. Daniel Shaykevich is the fund's current manager and has held that role since April of 2018.
Performance
Of course, investors look for strong performance in funds. VFIDX has a 5-year annualized total return of 1.08% 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 -2.57%, which places it in the middle 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. VFIDX's standard deviation over the past three years is 8.67% compared to the category average of 11.39%. The standard deviation of the fund over the past 5 years is 7.62% compared to the category average of 11.88%. This makes the fund less volatile than its peers over the past half-decade.
This fund has a beta of 1.03, meaning that it is more volatile than a broad market index of fixed income securities. Taking this into account, VFIDX has a positive alpha of 1.7, which measures performance on a risk-adjusted basis.
Expenses
Costs are increasingly important for mutual fund investing, and particularly as competition heats up in this market. And all things being equal, a lower cost product will outperform its otherwise identical counterpart, so taking a closer look at these metrics is key for investors. In terms of fees, VFIDX is a no load fund. It has an expense ratio of 0.10% compared to the category average of 0.77%. So, VFIDX is actually cheaper than its peers from a cost perspective.
Investors should also note that the minimum initial investment for the product is $50,000 and that each subsequent investment needs to be at $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 Investment-Grade Admiral ( VFIDX ) has a neutral Zacks Mutual Fund rank, and in conjunction with its comparatively similar performance, average downside risk, and lower fees, Vanguard Intermediate-Term Investment-Grade Admiral ( VFIDX ) looks like a somewhat average choice for investors right now.
For additional information on the Investment Grade Bond - Intermediate area of the mutual fund world, make sure to check out www.zacks.com/funds/mutual-funds. There, you can see more about the ranking process, and dive even deeper into VFIDX too 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.