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Is Vanguard Total Bond Market Index Institutional (VBTIX) a Strong Mutual Fund Pick Right Now?
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If you've been stuck searching for Mutual Fund Equity Report funds, consider Vanguard Total Bond Market Index Institutional (VBTIX - Free Report) as a possibility. The fund does not have a Zacks Mutual Fund Rank, though we have been able to explore other metrics like performance, volatility, and cost.
History of Fund/Manager
Vanguard Group is based in Malvern, PA, and is the manager of VBTIX. The Vanguard Total Bond Market Index Institutional made its debut in September of 1995 and VBTIX has managed to accumulate roughly $49.70 billion in assets, as of the most recently available information. The fund is currently managed by Joshua Barrickman who has been in charge of the fund since February of 2013.
Performance
Of course, investors look for strong performance in funds. This fund carries a 5-year annualized total return of 3.72%, and is in the middle third among its category peers. Investors who prefer analyzing shorter time frames should look at its 3-year annualized total return of 5.6%, 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 12.82%, the standard deviation of VBTIX over the past three years is 3.55%. The standard deviation of the fund over the past 5 years is 3.11% compared to the category average of 10.68%. This makes the fund less volatile than its peers over the past half-decade.
Risk Factors
Investors should note that the fund has a 5-year beta of 1.03, which means it is hypothetically as volatile as the market at large. Because alpha represents a portfolio's performance on a risk-adjusted basis relative to a benchmark, which is the S&P 500 in this case, one should pay attention to this metric as well. Over the past 5 years, the fund has a negative alpha of -0.01. This means that managers in this portfolio find it difficult to pick securities that generate better-than-benchmark returns.
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, VBTIX is a no load fund. It has an expense ratio of 0.04% compared to the category average of 0.78%. VBTIX is actually cheaper than its peers when you consider factors like cost.
While the minimum initial investment for the product is $5 million, investors should also note that each subsequent investment needs to be at least $1.
Bottom Line
Want even more information about VBTIX? 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. 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 Vanguard Total Bond Market Index Institutional (VBTIX) a Strong Mutual Fund Pick Right Now?
If you've been stuck searching for Mutual Fund Equity Report funds, consider Vanguard Total Bond Market Index Institutional (VBTIX - Free Report) as a possibility. The fund does not have a Zacks Mutual Fund Rank, though we have been able to explore other metrics like performance, volatility, and cost.
History of Fund/Manager
Vanguard Group is based in Malvern, PA, and is the manager of VBTIX. The Vanguard Total Bond Market Index Institutional made its debut in September of 1995 and VBTIX has managed to accumulate roughly $49.70 billion in assets, as of the most recently available information. The fund is currently managed by Joshua Barrickman who has been in charge of the fund since February of 2013.
Performance
Of course, investors look for strong performance in funds. This fund carries a 5-year annualized total return of 3.72%, and is in the middle third among its category peers. Investors who prefer analyzing shorter time frames should look at its 3-year annualized total return of 5.6%, 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 12.82%, the standard deviation of VBTIX over the past three years is 3.55%. The standard deviation of the fund over the past 5 years is 3.11% compared to the category average of 10.68%. This makes the fund less volatile than its peers over the past half-decade.
Risk Factors
Investors should note that the fund has a 5-year beta of 1.03, which means it is hypothetically as volatile as the market at large. Because alpha represents a portfolio's performance on a risk-adjusted basis relative to a benchmark, which is the S&P 500 in this case, one should pay attention to this metric as well. Over the past 5 years, the fund has a negative alpha of -0.01. This means that managers in this portfolio find it difficult to pick securities that generate better-than-benchmark returns.
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, VBTIX is a no load fund. It has an expense ratio of 0.04% compared to the category average of 0.78%. VBTIX is actually cheaper than its peers when you consider factors like cost.
While the minimum initial investment for the product is $5 million, investors should also note that each subsequent investment needs to be at least $1.
Bottom Line
Want even more information about VBTIX? 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. Zacks provides a full suite of tools to help you analyze your portfolio - both funds and stocks - in the most efficient way possible.