Having trouble finding a Mutual Fund Bond fund? Vanguard Intermediate-Term Tax-Exempt Investor (VWITX - Free Report) is a possible starting point. VWITX carries 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 responsible for VWITX, and the company is based out of Malvern, PA. Since Vanguard Intermediate-Term Tax-Exempt Investor made its debut in September of 1977, VWITX has garnered more than $2.83 billion in assets. James D'Arcy is the fund's current manager and has held that role since June 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 1.63%, 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 0.55%, 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. Over the past three years, VWITX's standard deviation comes in at 4.41%, compared to the category average of 10.07%. The standard deviation of the fund over the past 5 years is 3.7% compared to the category average of 8.73%. This makes the fund less volatile than its peers over the past half-decade.
VWITX carries a beta of 0.66, meaning that the fund is less volatile than a broad market index of fixed income securities. With this in mind, it has a negative alpha of -0.07, which measures performance on a risk-adjusted basis.
Ratings
Investors should also consider a bond's rating, which is a grade ( 'AAA' to 'D' ) given to a bond that indicates its credit quality. With this letter scale in mind, VWITX has 64.89% in high quality bonds rated at least 'AA' or higher, while 32.37% are of medium quality, with ratings of 'A' to 'BBB'. The fund has an average quality of AA, and focuses on high quality securities.
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, VWITX is a no load fund. It has an expense ratio of 0.17% compared to the category average of 0.79%. Looking at the fund from a cost perspective, VWITX is actually cheaper than its peers.
This fund requires a minimum initial investment of $3,000, and each subsequent investment should be at least $1.
Bottom Line
Overall, Vanguard Intermediate-Term Tax-Exempt Investor ( VWITX ) has a neutral Zacks Mutual Fund rank, and in conjunction with its comparatively strong performance, better downside risk, and lower fees, Vanguard Intermediate-Term Tax-Exempt Investor ( VWITX ) looks like a somewhat average choice for investors right now.
This could just be the start of your research on VWITXin the Mutual Fund Bond category. Consider going to www.zacks.com/funds/mutual-funds for additional information about this fund, and all the others that we rank as well for additional information. If you want to check out our stock reports as well, make sure to go to Zacks.com to see all of the great tools we have to offer, including our time-tested Zacks Rank.
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Having trouble finding a Mutual Fund Bond fund? Vanguard Intermediate-Term Tax-Exempt Investor (VWITX - Free Report) is a possible starting point. VWITX carries 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 responsible for VWITX, and the company is based out of Malvern, PA. Since Vanguard Intermediate-Term Tax-Exempt Investor made its debut in September of 1977, VWITX has garnered more than $2.83 billion in assets. James D'Arcy is the fund's current manager and has held that role since June 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 1.63%, 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 0.55%, 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. Over the past three years, VWITX's standard deviation comes in at 4.41%, compared to the category average of 10.07%. The standard deviation of the fund over the past 5 years is 3.7% compared to the category average of 8.73%. This makes the fund less volatile than its peers over the past half-decade.
VWITX carries a beta of 0.66, meaning that the fund is less volatile than a broad market index of fixed income securities. With this in mind, it has a negative alpha of -0.07, which measures performance on a risk-adjusted basis.
Ratings
Investors should also consider a bond's rating, which is a grade ( 'AAA' to 'D' ) given to a bond that indicates its credit quality. With this letter scale in mind, VWITX has 64.89% in high quality bonds rated at least 'AA' or higher, while 32.37% are of medium quality, with ratings of 'A' to 'BBB'. The fund has an average quality of AA, and focuses on high quality securities.
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, VWITX is a no load fund. It has an expense ratio of 0.17% compared to the category average of 0.79%. Looking at the fund from a cost perspective, VWITX is actually cheaper than its peers.
This fund requires a minimum initial investment of $3,000, and each subsequent investment should be at least $1.
Bottom Line
Overall, Vanguard Intermediate-Term Tax-Exempt Investor ( VWITX ) has a neutral Zacks Mutual Fund rank, and in conjunction with its comparatively strong performance, better downside risk, and lower fees, Vanguard Intermediate-Term Tax-Exempt Investor ( VWITX ) looks like a somewhat average choice for investors right now.
This could just be the start of your research on VWITXin the Mutual Fund Bond category. Consider going to www.zacks.com/funds/mutual-funds for additional information about this fund, and all the others that we rank as well for additional information. If you want to check out our stock reports as well, make sure to go to Zacks.com to see all of the great tools we have to offer, including our time-tested Zacks Rank.
Free Report Reveals How You Could Profit from the Growing Electric Vehicle Industry
Globally, electric car sales continue their remarkable growth even after breaking records in 2021. High gas prices have fueled his demand, but so has evolving EV comfort, features and technology. So, the fervor for EVs will be around long after gas prices normalize. Not only are manufacturers seeing record-high profits, but producers of EV-related technology are raking in the dough as well. Do you know how to cash in? If not, we have the perfect report for you – and it’s FREE! Today, don't miss your chance to download Zacks' top 5 stocks for the electric vehicle revolution at no cost and with no obligation.
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