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 Government Mortgage - Intermediate fund could think about starting with Vanguard GNMA Investor (VFIIX - Free Report) . VFIIX holds a Zacks Mutual Fund Rank of 1 (Strong Buy), which is based on nine forecasting factors like size, cost, and past performance.
Objective
We classify VFIIX in the Government Mortgage - Intermediate category, an area full of potential choices. Government Mortgage - Intermediate funds focus on the mortgage-backed securities (MBS) market, which packages mortgages together and then sells off the pooled securities as a MBS. Honing in on MBS'that have at least three years to maturity but less than 10, this fund category presents a medium risk and yield profile.
History of Fund/Manager
Vanguard Group is based in Malvern, PA, and is the manager of VFIIX. Since Vanguard GNMA Investor made its debut in June of 1980, VFIIX has garnered more than $7.70 billion in assets. The fund is currently managed by Joseph F. Marvan who has been in charge of the fund since May of 2019.
Performance
Of course, investors look for strong performance in funds. VFIIX has a 5-year annualized total return of 2.72% 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 3.28%, 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. VFIIX's standard deviation over the past three years is 2.13% compared to the category average of 8.31%. Over the past 5 years, the standard deviation of the fund is 2.05% compared to the category average of 7.49%. This makes the fund less volatile than its peers over the past half-decade.
VFIIX carries a beta of 0.44, meaning that the fund is less volatile than a broad market index of fixed income securities. With this in mind, it has a positive alpha of 0, 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, VFIIX is a no load fund. It has an expense ratio of 0.21% compared to the category average of 0.82%. So, VFIIX is actually cheaper than its peers from a cost perspective.
Investors should also note that the minimum initial investment for the product is $3,000 and that each subsequent investment needs to be at $1.
Bottom Line
Overall, Vanguard GNMA Investor ( VFIIX ) has a high Zacks Mutual Fund rank, and in conjunction with its comparatively strong performance, better downside risk, and lower fees, Vanguard GNMA Investor ( VFIIX ) looks like a good potential choice for investors right now.
For additional information on this product, or to compare it to other mutual funds in the Government Mortgage - Intermediate, make sure to go to www.zacks.com/funds/mutual-funds 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.
See More Zacks Research for These Tickers
Normally $25 each - click below to receive one report FREE:
Image: Bigstock
Is VFIIX a Strong Bond Fund Right Now?
Any investors hoping to find a Government Mortgage - Intermediate fund could think about starting with Vanguard GNMA Investor (VFIIX - Free Report) . VFIIX holds a Zacks Mutual Fund Rank of 1 (Strong Buy), which is based on nine forecasting factors like size, cost, and past performance.
Objective
We classify VFIIX in the Government Mortgage - Intermediate category, an area full of potential choices. Government Mortgage - Intermediate funds focus on the mortgage-backed securities (MBS) market, which packages mortgages together and then sells off the pooled securities as a MBS. Honing in on MBS'that have at least three years to maturity but less than 10, this fund category presents a medium risk and yield profile.
History of Fund/Manager
Vanguard Group is based in Malvern, PA, and is the manager of VFIIX. Since Vanguard GNMA Investor made its debut in June of 1980, VFIIX has garnered more than $7.70 billion in assets. The fund is currently managed by Joseph F. Marvan who has been in charge of the fund since May of 2019.
Performance
Of course, investors look for strong performance in funds. VFIIX has a 5-year annualized total return of 2.72% 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 3.28%, 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. VFIIX's standard deviation over the past three years is 2.13% compared to the category average of 8.31%. Over the past 5 years, the standard deviation of the fund is 2.05% compared to the category average of 7.49%. This makes the fund less volatile than its peers over the past half-decade.
VFIIX carries a beta of 0.44, meaning that the fund is less volatile than a broad market index of fixed income securities. With this in mind, it has a positive alpha of 0, 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, VFIIX is a no load fund. It has an expense ratio of 0.21% compared to the category average of 0.82%. So, VFIIX is actually cheaper than its peers from a cost perspective.
Investors should also note that the minimum initial investment for the product is $3,000 and that each subsequent investment needs to be at $1.
Bottom Line
Overall, Vanguard GNMA Investor ( VFIIX ) has a high Zacks Mutual Fund rank, and in conjunction with its comparatively strong performance, better downside risk, and lower fees, Vanguard GNMA Investor ( VFIIX ) looks like a good potential choice for investors right now.
For additional information on this product, or to compare it to other mutual funds in the Government Mortgage - Intermediate, make sure to go to www.zacks.com/funds/mutual-funds 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.