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.
Investors in search of an International Bond - Developed fund might want to consider looking at Vanguard Total International Bond Index Admiral (VTABX - Free Report) . The fund does not have a Zacks Mutual Fund Rank, though we have been able to explore other metrics like performance, volatility, and cost.
Objective
The world of International Bond - Developed funds is an area filled with different choices, like VTABX. International Bond - Developed funds focus on fixed income securities from developed nations besides the United States. This usually results in countries like Japan, Germany, the UK, France, and Australia dominating the list of top holdings. Funds here offer geographic diversification, but they can also introduce currency risk into the picture as well.
History of Fund/Manager
Vanguard Group is based in Malvern, PA, and is the manager of VTABX. Since Vanguard Total International Bond Index Admiral made its debut in May of 2013, VTABX has garnered more than $50.20 billion in assets. The fund's current manager, Joshua Barrickman, has been in charge of the fund since May of 2013.
Performance
Obviously, what investors are looking for in these funds is strong performance relative to their peers. This fund in particular has delivered a 5-year annualized total return of 3.27%, and is 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 3.96%, 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. Compared to the category average of 11.42%, the standard deviation of VTABX over the past three years is 3.26%. Looking at the past 5 years, the fund's standard deviation is 2.99% compared to the category average of 9.56%. This makes the fund less volatile than its peers over the past half-decade.
VTABX carries a beta of 0.72, 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 0.74, 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, VTABX is a no load fund. It has an expense ratio of 0.11% compared to the category average of 0.93%. So, VTABX is actually cheaper than its peers from a cost perspective.
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
Don't stop here for your research on International Bond - Developed 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 VTABX to its peers 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 VTABX a Strong Bond Fund Right Now?
Investors in search of an International Bond - Developed fund might want to consider looking at Vanguard Total International Bond Index Admiral (VTABX - Free Report) . The fund does not have a Zacks Mutual Fund Rank, though we have been able to explore other metrics like performance, volatility, and cost.
Objective
The world of International Bond - Developed funds is an area filled with different choices, like VTABX. International Bond - Developed funds focus on fixed income securities from developed nations besides the United States. This usually results in countries like Japan, Germany, the UK, France, and Australia dominating the list of top holdings. Funds here offer geographic diversification, but they can also introduce currency risk into the picture as well.
History of Fund/Manager
Vanguard Group is based in Malvern, PA, and is the manager of VTABX. Since Vanguard Total International Bond Index Admiral made its debut in May of 2013, VTABX has garnered more than $50.20 billion in assets. The fund's current manager, Joshua Barrickman, has been in charge of the fund since May of 2013.
Performance
Obviously, what investors are looking for in these funds is strong performance relative to their peers. This fund in particular has delivered a 5-year annualized total return of 3.27%, and is 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 3.96%, 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. Compared to the category average of 11.42%, the standard deviation of VTABX over the past three years is 3.26%. Looking at the past 5 years, the fund's standard deviation is 2.99% compared to the category average of 9.56%. This makes the fund less volatile than its peers over the past half-decade.
VTABX carries a beta of 0.72, 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 0.74, 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, VTABX is a no load fund. It has an expense ratio of 0.11% compared to the category average of 0.93%. So, VTABX is actually cheaper than its peers from a cost perspective.
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
Don't stop here for your research on International Bond - Developed 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 VTABX to its peers 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.