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If you have been looking for Investment Grade Bond - Intermediate funds, it would not be wise to start your search with Vanguard Intermediate-Term Investment-Grade Investor (VFICX - Free Report) . VFICX carries a Zacks Mutual Fund Rank of 4 (Sell), which is based on nine forecasting factors like size, cost, and past performance.
Objective
We note that VFICX is an Investment Grade Bond - Intermediate option, which is a segment loaded with many different investment options. By targeting bonds that mature in more than three years but less than 15 years, Investment Grade Bond - Intermediate funds are a middle of the curve option. Fixed income instruments at this maturity level usually have medium duration risk, but their yields are respectable, especially in comparison to their short-maturity counterparts. Additionally, a focus on investment grade makes these funds safer, but yields tend to be lower than in the junk bond category.
History of Fund/Manager
VFICX is a part of the Vanguard Group family of funds, a company based out of Malvern, PA. The Vanguard Intermediate-Term Investment-Grade Investor made its debut in November of 1993 and VFICX has managed to accumulate roughly $2.06 billion in assets, as of the most recently available information. A team of investment professionals is the fund's current manager.
Performance
Investors naturally seek funds with strong performance. VFICX has a 5-year annualized total return of 3.75% and is in the middle 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 6.87%, 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. The standard deviation of VFICX over the past three years is 4.64% compared to the category average of 11.1%. Over the past 5 years, the standard deviation of the fund is 4.14% compared to the category average of 9.17%. This makes the fund less volatile than its peers over the past half-decade.
With a beta of 1.1, this fund is more volatile than a broad market index of fixed income securities. Taking this into account, VFICX has a positive alpha of 0.61, which measures performance on a risk-adjusted basis.
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, VFICX is a no load fund. It has an expense ratio of 0.20% compared to the category average of 0.79%. 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 low 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 weak choice for investors right now.
Don't stop here for your research on Investment Grade Bond - 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 VFICX to its peers as well for additional information. Want to learn even more? We have a full suite of tools on stocks that you can use to find the best choices for your portfolio too, no matter what kind of investor you are.
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Is VFICX a Strong Bond Fund Right Now?
If you have been looking for Investment Grade Bond - Intermediate funds, it would not be wise to start your search with Vanguard Intermediate-Term Investment-Grade Investor (VFICX - Free Report) . VFICX carries a Zacks Mutual Fund Rank of 4 (Sell), which is based on nine forecasting factors like size, cost, and past performance.
Objective
We note that VFICX is an Investment Grade Bond - Intermediate option, which is a segment loaded with many different investment options. By targeting bonds that mature in more than three years but less than 15 years, Investment Grade Bond - Intermediate funds are a middle of the curve option. Fixed income instruments at this maturity level usually have medium duration risk, but their yields are respectable, especially in comparison to their short-maturity counterparts. Additionally, a focus on investment grade makes these funds safer, but yields tend to be lower than in the junk bond category.
History of Fund/Manager
VFICX is a part of the Vanguard Group family of funds, a company based out of Malvern, PA. The Vanguard Intermediate-Term Investment-Grade Investor made its debut in November of 1993 and VFICX has managed to accumulate roughly $2.06 billion in assets, as of the most recently available information. A team of investment professionals is the fund's current manager.
Performance
Investors naturally seek funds with strong performance. VFICX has a 5-year annualized total return of 3.75% and is in the middle 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 6.87%, 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. The standard deviation of VFICX over the past three years is 4.64% compared to the category average of 11.1%. Over the past 5 years, the standard deviation of the fund is 4.14% compared to the category average of 9.17%. This makes the fund less volatile than its peers over the past half-decade.
With a beta of 1.1, this fund is more volatile than a broad market index of fixed income securities. Taking this into account, VFICX has a positive alpha of 0.61, which measures performance on a risk-adjusted basis.
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, VFICX is a no load fund. It has an expense ratio of 0.20% compared to the category average of 0.79%. 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 low 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 weak choice for investors right now.
Don't stop here for your research on Investment Grade Bond - 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 VFICX to its peers as well for additional information. Want to learn even more? We have a full suite of tools on stocks that you can use to find the best choices for your portfolio too, no matter what kind of investor you are.