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There are plenty of choices in the Mutual Fund Bond category, but where should you start your research? Well, one fund that may not be worth investigating is Vanguard Long-Term Investment-Grade Income Investor (VWESX - Free Report) . VWESX possesses a Zacks Mutual Fund Rank of 4 (Sell), which is based on various forecasting factors like size, cost, and past performance.
History of Fund/Manager
Vanguard Group is responsible for VWESX, and the company is based out of Malvern, PA. The Vanguard Long-Term Investment-Grade Income Investor made its debut in July of 1973 and VWESX has managed to accumulate roughly $3.68 billion in assets, as of the most recently available information. The fund's current manager is a team of investment professionals.
Performance
Of course, investors look for strong performance in funds. This fund has delivered a 5-year annualized total return of 0.37%, and it sits 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 -7.6%, 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 15.51%, the standard deviation of VWESX over the past three years is 14.68%. The fund's standard deviation over the past 5 years is 12.76% compared to the category average of 13.43%. This makes the fund less volatile than its peers over the past half-decade.
This fund has a beta of 1.97, meaning that it is more volatile than a broad market index of fixed income securities. Taking this into account, VWESX has a positive alpha of 1.41, 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, VWESX is a no load fund. It has an expense ratio of 0.22% compared to the category average of 0.81%. From a cost perspective, VWESX is actually cheaper than its peers.
This fund requires a minimum initial investment of $3,000, and each subsequent investment should be at least $1.
Bottom Line
Overall, Vanguard Long-Term Investment-Grade Income Investor ( VWESX ) has a low Zacks Mutual Fund rank, and in conjunction with its comparatively similar performance, average downside risk, and lower fees, this fund looks like a somewhat weak 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. 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 VWESX a Strong Bond Fund Right Now?
There are plenty of choices in the Mutual Fund Bond category, but where should you start your research? Well, one fund that may not be worth investigating is Vanguard Long-Term Investment-Grade Income Investor (VWESX - Free Report) . VWESX possesses a Zacks Mutual Fund Rank of 4 (Sell), which is based on various forecasting factors like size, cost, and past performance.
History of Fund/Manager
Vanguard Group is responsible for VWESX, and the company is based out of Malvern, PA. The Vanguard Long-Term Investment-Grade Income Investor made its debut in July of 1973 and VWESX has managed to accumulate roughly $3.68 billion in assets, as of the most recently available information. The fund's current manager is a team of investment professionals.
Performance
Of course, investors look for strong performance in funds. This fund has delivered a 5-year annualized total return of 0.37%, and it sits 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 -7.6%, 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 15.51%, the standard deviation of VWESX over the past three years is 14.68%. The fund's standard deviation over the past 5 years is 12.76% compared to the category average of 13.43%. This makes the fund less volatile than its peers over the past half-decade.
This fund has a beta of 1.97, meaning that it is more volatile than a broad market index of fixed income securities. Taking this into account, VWESX has a positive alpha of 1.41, 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, VWESX is a no load fund. It has an expense ratio of 0.22% compared to the category average of 0.81%. From a cost perspective, VWESX is actually cheaper than its peers.
This fund requires a minimum initial investment of $3,000, and each subsequent investment should be at least $1.
Bottom Line
Overall, Vanguard Long-Term Investment-Grade Income Investor ( VWESX ) has a low Zacks Mutual Fund rank, and in conjunction with its comparatively similar performance, average downside risk, and lower fees, this fund looks like a somewhat weak 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. Zacks provides a full suite of tools to help you analyze your portfolio - both funds and stocks - in the most efficient way possible.