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If you've been stuck searching for Mutual Fund Bond funds, consider Vanguard High-Yield Corporate Admiral (VWEAX - Free Report) as a possibility. VWEAX carries a Zacks Mutual Fund Rank of 1 (Strong Buy), which is based on various forecasting factors like size, cost, and past performance.
History of Fund/Manager
Vanguard Group is responsible for VWEAX, and the company is based out of Malvern, PA. Vanguard High-Yield Corporate Admiral made its debut in November of 2001, and since then, VWEAX has accumulated about $20.57 billion in assets, per the most up-to-date date available. Michael L. Hong is the fund's current manager and has held that role since February of 2008.
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 2.95%, and it sits 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 0.94%, 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 13.93%, the standard deviation of VWEAX over the past three years is 10.43%. Over the past 5 years, the standard deviation of the fund is 8.63% compared to the category average of 11.85%. This makes the fund less volatile than its peers over the past half-decade.
With a beta of 0.37, this fund is less volatile than a broad market index of fixed income securities. Taking this into account, VWEAX has a positive alpha of 2.28, 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, VWEAX is a no load fund. It has an expense ratio of 0.13% compared to the category average of 0.97%. From a cost perspective, VWEAX is actually cheaper than its peers.
This fund requires a minimum initial investment of $50,000, and each subsequent investment should 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 strong performance, average downside risk, and lower fees, this fund 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. 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 VWEAX a Strong Bond Fund Right Now?
If you've been stuck searching for Mutual Fund Bond funds, consider Vanguard High-Yield Corporate Admiral (VWEAX - Free Report) as a possibility. VWEAX carries a Zacks Mutual Fund Rank of 1 (Strong Buy), which is based on various forecasting factors like size, cost, and past performance.
History of Fund/Manager
Vanguard Group is responsible for VWEAX, and the company is based out of Malvern, PA. Vanguard High-Yield Corporate Admiral made its debut in November of 2001, and since then, VWEAX has accumulated about $20.57 billion in assets, per the most up-to-date date available. Michael L. Hong is the fund's current manager and has held that role since February of 2008.
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 2.95%, and it sits 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 0.94%, 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 13.93%, the standard deviation of VWEAX over the past three years is 10.43%. Over the past 5 years, the standard deviation of the fund is 8.63% compared to the category average of 11.85%. This makes the fund less volatile than its peers over the past half-decade.
With a beta of 0.37, this fund is less volatile than a broad market index of fixed income securities. Taking this into account, VWEAX has a positive alpha of 2.28, 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, VWEAX is a no load fund. It has an expense ratio of 0.13% compared to the category average of 0.97%. From a cost perspective, VWEAX is actually cheaper than its peers.
This fund requires a minimum initial investment of $50,000, and each subsequent investment should 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 strong performance, average downside risk, and lower fees, this fund 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. 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.