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Are you on the hunt for an International Bond - Developed fund? You should think about starting with Vanguard Total International Bond Index Admiral (VTABX - Free Report) . While this fund is not tracked by the Zacks Mutual Fund Rank, we were able to examine other factors 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. Vanguard Total International Bond Index Admiral made its debut in May of 2013, and since then, VTABX has accumulated about $49.20 billion in assets, per the most up-to-date date available. Joshua Barrickman is the fund's current manager and has held that role since May of 2013.
Performance
Of course, investors look for strong performance in funds. This fund carries a 5-year annualized total return of 3.34%, 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 4.42%, 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. The standard deviation of VTABX over the past three years is 2.96% compared to the category average of 7.86%. The standard deviation of the fund over the past 5 years is 3.02% compared to the category average of 8.04%. This makes the fund less volatile than its peers over the past half-decade.
This fund has a beta of 0.71, meaning that it is less volatile than a broad market index of fixed income securities. Taking this into account, VTABX has a positive alpha of 0.49, 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 0.98%. So, VTABX is actually cheaper than its peers from a cost perspective.
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
Want even more information about VTABX? 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 VTABX a Strong Bond Fund Right Now?
Are you on the hunt for an International Bond - Developed fund? You should think about starting with Vanguard Total International Bond Index Admiral (VTABX - Free Report) . While this fund is not tracked by the Zacks Mutual Fund Rank, we were able to examine other factors 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. Vanguard Total International Bond Index Admiral made its debut in May of 2013, and since then, VTABX has accumulated about $49.20 billion in assets, per the most up-to-date date available. Joshua Barrickman is the fund's current manager and has held that role since May of 2013.
Performance
Of course, investors look for strong performance in funds. This fund carries a 5-year annualized total return of 3.34%, 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 4.42%, 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. The standard deviation of VTABX over the past three years is 2.96% compared to the category average of 7.86%. The standard deviation of the fund over the past 5 years is 3.02% compared to the category average of 8.04%. This makes the fund less volatile than its peers over the past half-decade.
This fund has a beta of 0.71, meaning that it is less volatile than a broad market index of fixed income securities. Taking this into account, VTABX has a positive alpha of 0.49, 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 0.98%. So, VTABX is actually cheaper than its peers from a cost perspective.
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
Want even more information about VTABX? 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.