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Is VFICX a Strong Bond Fund Right Now?

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Mutual Fund Bond fund seekers may want to consider taking a look at Vanguard Intermediate-Term Investment-Grade Investor (VFICX - Free Report) . VFICX bears a Zacks Mutual Fund Rank of 3 (Hold), which is based on nine forecasting factors like size, cost, and past performance.

History of Fund/Manager

VFICX finds itself in the Vanguard Group family, based out of Malvern, PA. Vanguard Intermediate-Term Investment-Grade Investor made its debut in November of 1993, and since then, VFICX has accumulated about $1.75 billion in assets, per the most up-to-date date available. The fund is currently managed by a team of investment professionals.

Performance

Of course, investors look for strong performance in funds. This fund carries a 5-year annualized total return of 2.74%, and is in the bottom third among its category peers. Investors who prefer analyzing shorter time frames should look at its 3-year annualized total return of 2.51%, which places it in the bottom 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 11.11%, the standard deviation of VFICX over the past three years is 5.28%. The fund's standard deviation over the past 5 years is 4.43% compared to the category average of 9.63%. This makes the fund less volatile than its peers over the past half-decade.

With a beta of 1.12, this fund is more volatile than a broad market index of fixed income securities. Taking this into account, VFICX has a positive alpha of 0.48, which measures performance on a risk-adjusted basis.

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, VFICX is a no load fund. It has an expense ratio of 0.20% compared to the category average of 0.77%. VFICX is actually cheaper than its peers when you consider factors like cost.

This fund requires a minimum initial investment of $3,000, and each subsequent investment should be at least $1.

Bottom Line

Overall, Vanguard Intermediate-Term Investment-Grade Investor ( VFICX ) has a neutral Zacks Mutual Fund rank, and in conjunction with its comparatively weak performance, better downside risk, and lower fees, Vanguard Intermediate-Term Investment-Grade Investor ( VFICX ) looks like a somewhat average choice for investors right now.

Your research on the Mutual Fund Bond segment doesn't have to stop here. You can check out all the great mutual fund tools we have to offer by going to www.zacks.com/funds/mutual-funds to see the additional features we offer as well for additional information. If you want to check out our stock reports as well, make sure to go to Zacks.com to see all of the great tools we have to offer, including our time-tested Zacks Rank.


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