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On the lookout for a Government Mortgage - Intermediate fund? Starting with Vanguard GNMA Admiral (VFIJX - Free Report) is one possibility. VFIJX possesses a Zacks Mutual Fund Rank of 1 (Strong Buy), which is based on nine forecasting factors like size, cost, and past performance.
Objective
VFIJX is one of many Government Mortgage - Intermediate funds to choose from. Government Mortgage - Intermediate funds focus on the mortgage-backed securities (MBS) market. This market takes mortgages, packages them together, and sells off the pooled securities to investors. This particular category focuses on MBS that usually have at least three years to maturity, but less than 10, giving a medium risk and yield profile to funds here.
History of Fund/Manager
Vanguard Group is based in Malvern, PA, and is the manager of VFIJX. Vanguard GNMA Admiral debuted in February of 2001. Since then, VFIJX has accumulated assets of about $19.21 billion, according to the most recently available information. Joseph F. Marvan is the fund's current manager and has held that role since May of 2019.
Performance
Of course, investors look for strong performance in funds. VFIJX has a 5-year annualized total return of 2.25% and is in the top third among its category peers. If you're interested in shorter time frames, do not dismiss looking at the fund's 3-year annualized total return of 3.72%, 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. Compared to the category average of 8.83%, the standard deviation of VFIJX over the past three years is 1.9%. Over the past 5 years, the standard deviation of the fund is 1.99% compared to the category average of 7.61%. This makes the fund less volatile than its peers over the past half-decade.
With a beta of 0.36, this fund is less volatile than a broad market index of fixed income securities. Taking this into account, VFIJX has a positive alpha of 0.23, 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, VFIJX is a no load fund. It has an expense ratio of 0.11% compared to the category average of 0.79%. Looking at the fund from a cost perspective, VFIJX is actually cheaper than its peers.
Investors should also note that the minimum initial investment for the product is $50,000 and that each subsequent investment needs to be at $1.
Bottom Line
Overall, Vanguard GNMA Admiral ( VFIJX ) has a high Zacks Mutual Fund rank, and in conjunction with its comparatively strong performance, better downside risk, and lower fees, Vanguard GNMA Admiral ( VFIJX ) looks like a good potential choice for investors right now.
Don't stop here for your research on Government Mortgage - Intermediate 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 VFIJX to its peers as well 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.
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Is VFIJX a Strong Bond Fund Right Now?
On the lookout for a Government Mortgage - Intermediate fund? Starting with Vanguard GNMA Admiral (VFIJX - Free Report) is one possibility. VFIJX possesses a Zacks Mutual Fund Rank of 1 (Strong Buy), which is based on nine forecasting factors like size, cost, and past performance.
Objective
VFIJX is one of many Government Mortgage - Intermediate funds to choose from. Government Mortgage - Intermediate funds focus on the mortgage-backed securities (MBS) market. This market takes mortgages, packages them together, and sells off the pooled securities to investors. This particular category focuses on MBS that usually have at least three years to maturity, but less than 10, giving a medium risk and yield profile to funds here.
History of Fund/Manager
Vanguard Group is based in Malvern, PA, and is the manager of VFIJX. Vanguard GNMA Admiral debuted in February of 2001. Since then, VFIJX has accumulated assets of about $19.21 billion, according to the most recently available information. Joseph F. Marvan is the fund's current manager and has held that role since May of 2019.
Performance
Of course, investors look for strong performance in funds. VFIJX has a 5-year annualized total return of 2.25% and is in the top third among its category peers. If you're interested in shorter time frames, do not dismiss looking at the fund's 3-year annualized total return of 3.72%, 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. Compared to the category average of 8.83%, the standard deviation of VFIJX over the past three years is 1.9%. Over the past 5 years, the standard deviation of the fund is 1.99% compared to the category average of 7.61%. This makes the fund less volatile than its peers over the past half-decade.
With a beta of 0.36, this fund is less volatile than a broad market index of fixed income securities. Taking this into account, VFIJX has a positive alpha of 0.23, 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, VFIJX is a no load fund. It has an expense ratio of 0.11% compared to the category average of 0.79%. Looking at the fund from a cost perspective, VFIJX is actually cheaper than its peers.
Investors should also note that the minimum initial investment for the product is $50,000 and that each subsequent investment needs to be at $1.
Bottom Line
Overall, Vanguard GNMA Admiral ( VFIJX ) has a high Zacks Mutual Fund rank, and in conjunction with its comparatively strong performance, better downside risk, and lower fees, Vanguard GNMA Admiral ( VFIJX ) looks like a good potential choice for investors right now.
Don't stop here for your research on Government Mortgage - Intermediate 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 VFIJX to its peers as well 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.