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There are plenty of choices in the Mutual Fund Bond category, but where should you start your research? Well, one fund that you should consider investigating is Vanguard Intermediate-Term Investment-Grade Investor (VFICX - Free Report) . VFICX possesses a Zacks Mutual Fund Rank of 3 (Hold), which is based on nine forecasting factors like size, cost, and past performance.
History of Fund/Manager
Vanguard Group is based in Malvern, PA, and is the manager of VFICX. Since Vanguard Intermediate-Term Investment-Grade Investor made its debut in November of 1993, VFICX has garnered more than $1.54 billion in assets. A team of investment professionals is the fund's current manager.
Performance
Of course, investors look for strong performance in funds. This fund has delivered a 5-year annualized total return of -0.06%, and it sits in the middle third among its category peers. Investors who prefer analyzing shorter time frames should look at its 3-year annualized total return of -3.01%, which places it in the middle 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. VFICX's standard deviation over the past three years is 7.19% compared to the category average of 12.77%. The standard deviation of the fund over the past 5 years is 5.96% compared to the category average of 11.05%. This makes the fund less volatile than its peers over the past half-decade.
This fund has a beta of 1.06, meaning that it is more volatile than a broad market index of fixed income securities. Taking this into account, VFICX has a positive alpha of 0.5, 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, VFICX is a no load fund. It has an expense ratio of 0.20% compared to the category average of 0.78%. Looking at the fund from a cost perspective, VFICX is actually cheaper than its peers.
Investors need to be aware that with this product, the minimum initial investment is $3,000; each subsequent investment needs to be at least $1.
Bottom Line
Overall, Vanguard Intermediate-Term Investment-Grade Investor ( VFICX ) has a neutral Zacks Mutual Fund rank, and in conjunction with its comparatively similar performance, better downside risk, and lower fees, Vanguard Intermediate-Term Investment-Grade Investor ( VFICX ) looks like a somewhat average choice for investors right now.
Want even more information about VFICX? Then go over to Zacks.com and check out our mutual fund comparison tool, and all of the other great features that we have to help you with your mutual fund analysis 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.
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Is VFICX a Strong Bond Fund Right Now?
There are plenty of choices in the Mutual Fund Bond category, but where should you start your research? Well, one fund that you should consider investigating is Vanguard Intermediate-Term Investment-Grade Investor (VFICX - Free Report) . VFICX possesses a Zacks Mutual Fund Rank of 3 (Hold), which is based on nine forecasting factors like size, cost, and past performance.
History of Fund/Manager
Vanguard Group is based in Malvern, PA, and is the manager of VFICX. Since Vanguard Intermediate-Term Investment-Grade Investor made its debut in November of 1993, VFICX has garnered more than $1.54 billion in assets. A team of investment professionals is the fund's current manager.
Performance
Of course, investors look for strong performance in funds. This fund has delivered a 5-year annualized total return of -0.06%, and it sits in the middle third among its category peers. Investors who prefer analyzing shorter time frames should look at its 3-year annualized total return of -3.01%, which places it in the middle 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. VFICX's standard deviation over the past three years is 7.19% compared to the category average of 12.77%. The standard deviation of the fund over the past 5 years is 5.96% compared to the category average of 11.05%. This makes the fund less volatile than its peers over the past half-decade.
This fund has a beta of 1.06, meaning that it is more volatile than a broad market index of fixed income securities. Taking this into account, VFICX has a positive alpha of 0.5, 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, VFICX is a no load fund. It has an expense ratio of 0.20% compared to the category average of 0.78%. Looking at the fund from a cost perspective, VFICX is actually cheaper than its peers.
Investors need to be aware that with this product, the minimum initial investment is $3,000; each subsequent investment needs to be at least $1.
Bottom Line
Overall, Vanguard Intermediate-Term Investment-Grade Investor ( VFICX ) has a neutral Zacks Mutual Fund rank, and in conjunction with its comparatively similar performance, better downside risk, and lower fees, Vanguard Intermediate-Term Investment-Grade Investor ( VFICX ) looks like a somewhat average choice for investors right now.
Want even more information about VFICX? Then go over to Zacks.com and check out our mutual fund comparison tool, and all of the other great features that we have to help you with your mutual fund analysis 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.