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On the lookout for a Mutual Fund Bond fund? Starting with Vanguard High-Yield Corporate Admiral (VWEAX - Free Report) is one possibility. VWEAX carries a Zacks Mutual Fund Rank of 2 (Buy), which is based on nine forecasting factors like size, cost, and past performance.
History of Fund/Manager
Vanguard Group is based in Malvern, PA, and is the manager of VWEAX. Vanguard High-Yield Corporate Admiral made its debut in November of 2001, and since then, VWEAX has accumulated about $25.01 billion in assets, per the most up-to-date date available. The fund's current manager, Michael L. Hong, has been in charge of the fund since February of 2008.
Performance
Investors naturally seek funds with strong performance. This fund in particular has delivered a 5-year annualized total return of 4.91%, 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 5.53%, 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. VWEAX's standard deviation over the past three years is 7.95% compared to the category average of 11.74%. The fund's standard deviation over the past 5 years is 6.78% compared to the category average of 10%. This makes the fund less volatile than its peers over the past half-decade.
With a beta of 0.59, this fund is less volatile than a broad market index of fixed income securities. Taking this into account, VWEAX has a positive alpha of 2.63, 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, VWEAX is a no load fund. It has an expense ratio of 0.13% compared to the category average of 0.99%. From a cost perspective, VWEAX is actually cheaper than its peers.
Investors need to be aware that with this product, the minimum initial investment is $50,000; each subsequent investment needs to be at least $1.
Bottom Line
Overall, Vanguard High-Yield Corporate Admiral ( VWEAX ) has a high Zacks Mutual Fund rank, and in conjunction with its comparatively similar performance, average downside risk, and lower fees, Vanguard High-Yield Corporate Admiral ( VWEAX ) looks like a good potential choice for investors right now.
For additional information on this product, or to compare it to other mutual funds in the Mutual Fund Bond, make sure to go to www.zacks.com/funds/mutual-funds for additional information. And don't forget, Zacks has all of your needs covered on the equity side too! Make sure to check out Zacks.com for more information on our screening capabilities, Rank, and all our articles as well.
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Is VWEAX a Strong Bond Fund Right Now?
On the lookout for a Mutual Fund Bond fund? Starting with Vanguard High-Yield Corporate Admiral (VWEAX - Free Report) is one possibility. VWEAX carries a Zacks Mutual Fund Rank of 2 (Buy), which is based on nine forecasting factors like size, cost, and past performance.
History of Fund/Manager
Vanguard Group is based in Malvern, PA, and is the manager of VWEAX. Vanguard High-Yield Corporate Admiral made its debut in November of 2001, and since then, VWEAX has accumulated about $25.01 billion in assets, per the most up-to-date date available. The fund's current manager, Michael L. Hong, has been in charge of the fund since February of 2008.
Performance
Investors naturally seek funds with strong performance. This fund in particular has delivered a 5-year annualized total return of 4.91%, 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 5.53%, 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. VWEAX's standard deviation over the past three years is 7.95% compared to the category average of 11.74%. The fund's standard deviation over the past 5 years is 6.78% compared to the category average of 10%. This makes the fund less volatile than its peers over the past half-decade.
With a beta of 0.59, this fund is less volatile than a broad market index of fixed income securities. Taking this into account, VWEAX has a positive alpha of 2.63, 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, VWEAX is a no load fund. It has an expense ratio of 0.13% compared to the category average of 0.99%. From a cost perspective, VWEAX is actually cheaper than its peers.
Investors need to be aware that with this product, the minimum initial investment is $50,000; each subsequent investment needs to be at least $1.
Bottom Line
Overall, Vanguard High-Yield Corporate Admiral ( VWEAX ) has a high Zacks Mutual Fund rank, and in conjunction with its comparatively similar performance, average downside risk, and lower fees, Vanguard High-Yield Corporate Admiral ( VWEAX ) looks like a good potential choice for investors right now.
For additional information on this product, or to compare it to other mutual funds in the Mutual Fund Bond, make sure to go to www.zacks.com/funds/mutual-funds for additional information. And don't forget, Zacks has all of your needs covered on the equity side too! Make sure to check out Zacks.com for more information on our screening capabilities, Rank, and all our articles as well.