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.
Government Bond - Short fund seekers should consider taking a look at Vanguard Short-Term Federal Investor (VSGBX - Free Report) . VSGBX has a Zacks Mutual Fund Rank of 1 (Strong Buy), which is based on nine forecasting factors like size, cost, and past performance.
Objective
The world of Government Bond - Short funds is an area filled with options, such as VSGBX. Government Bond - Short funds hold securities issued by the federal government of the United States of America. These are seen as extremely low risk securities from a default perspective, and are often regarded as risk-free assets. This category focuses on the short end of the curve, and that results in lower yields, but also less sensitivity to interest rate fluctuations, too.
History of Fund/Manager
Vanguard Group is based in Malvern, PA, and is the manager of VSGBX. Vanguard Short-Term Federal Investor made its debut in December of 1987, and since then, VSGBX has accumulated about $746.64 million in assets, per the most up-to-date date available. The fund is currently managed by Brian Quigley who has been in charge of the fund since January of 2015.
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 1.98%, and is in the top third among its category peers. Investors who prefer analyzing shorter time frames should look at its 3-year annualized total return of 3.43%, 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 8.15%, the standard deviation of VSGBX over the past three years is 1.16%. Over the past 5 years, the standard deviation of the fund is 1.21% compared to the category average of 6.85%. This makes the fund less volatile than its peers over the past half-decade.
This fund has a beta of 0.25, meaning that it is less volatile than a broad market index of fixed income securities. Taking this into account, VSGBX has a positive alpha of 0.27, 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, VSGBX is a no load fund. It has an expense ratio of 0.20% compared to the category average of 0.65%. Looking at the fund from a cost perspective, VSGBX 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 Short-Term Federal Investor ( VSGBX ) has a high Zacks Mutual Fund rank, and in conjunction with its comparatively strong performance, better downside risk, and lower fees, Vanguard Short-Term Federal Investor ( VSGBX ) looks like a good potential choice for investors right now.
Don't stop here for your research on Government Bond - Short 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 VSGBX 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.
See More Zacks Research for These Tickers
Normally $25 each - click below to receive one report FREE:
Image: Bigstock
Is VSGBX a Strong Bond Fund Right Now?
Government Bond - Short fund seekers should consider taking a look at Vanguard Short-Term Federal Investor (VSGBX - Free Report) . VSGBX has a Zacks Mutual Fund Rank of 1 (Strong Buy), which is based on nine forecasting factors like size, cost, and past performance.
Objective
The world of Government Bond - Short funds is an area filled with options, such as VSGBX. Government Bond - Short funds hold securities issued by the federal government of the United States of America. These are seen as extremely low risk securities from a default perspective, and are often regarded as risk-free assets. This category focuses on the short end of the curve, and that results in lower yields, but also less sensitivity to interest rate fluctuations, too.
History of Fund/Manager
Vanguard Group is based in Malvern, PA, and is the manager of VSGBX. Vanguard Short-Term Federal Investor made its debut in December of 1987, and since then, VSGBX has accumulated about $746.64 million in assets, per the most up-to-date date available. The fund is currently managed by Brian Quigley who has been in charge of the fund since January of 2015.
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 1.98%, and is in the top third among its category peers. Investors who prefer analyzing shorter time frames should look at its 3-year annualized total return of 3.43%, 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 8.15%, the standard deviation of VSGBX over the past three years is 1.16%. Over the past 5 years, the standard deviation of the fund is 1.21% compared to the category average of 6.85%. This makes the fund less volatile than its peers over the past half-decade.
This fund has a beta of 0.25, meaning that it is less volatile than a broad market index of fixed income securities. Taking this into account, VSGBX has a positive alpha of 0.27, 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, VSGBX is a no load fund. It has an expense ratio of 0.20% compared to the category average of 0.65%. Looking at the fund from a cost perspective, VSGBX 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 Short-Term Federal Investor ( VSGBX ) has a high Zacks Mutual Fund rank, and in conjunction with its comparatively strong performance, better downside risk, and lower fees, Vanguard Short-Term Federal Investor ( VSGBX ) looks like a good potential choice for investors right now.
Don't stop here for your research on Government Bond - Short 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 VSGBX 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.