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Mutual Fund Bond fund seekers should consider taking a look at Vanguard GNMA Admiral (VFIJX - Free Report) . VFIJX possesses 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 based in Malvern, PA, and is the manager of VFIJX. The Vanguard GNMA Admiral made its debut in February of 2001 and VFIJX has managed to accumulate roughly $11.38 billion in assets, as of the most recently available information. The fund is currently managed by Brian Conroy who has been in charge of the fund since May of 2019.
Performance
Of course, investors look for strong performance in funds. This fund in particular has delivered a 5-year annualized total return of 0.37%, and it sits in the middle third among its category peers. But if you are looking for a shorter time frame, it is also worth looking at its 3-year annualized total return of -2.93%, which places it in the top 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. The standard deviation of VFIJX over the past three years is 5.91% compared to the category average of 11.26%. Over the past 5 years, the standard deviation of the fund is 4.87% compared to the category average of 9.9%. This makes the fund less volatile than its peers over the past half-decade.
This fund has a beta of 0.87, meaning that it is less volatile than a broad market index of fixed income securities. Taking this into account, VFIJX has a negative alpha of -0.63, 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, VFIJX is a no load fund. It has an expense ratio of 0.11% compared to the category average of 0.77%. VFIJX is actually cheaper than its peers when you consider factors like cost.
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 GNMA Admiral ( VFIJX ) has a high Zacks Mutual Fund rank, and in conjunction with its comparatively similar performance, better 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. If you are more of a stock investor, make sure to also check out our Zacks Rank, and our full suite of tools we have available for novice and professional investors alike.
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Is VFIJX a Strong Bond Fund Right Now?
Mutual Fund Bond fund seekers should consider taking a look at Vanguard GNMA Admiral (VFIJX - Free Report) . VFIJX possesses 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 based in Malvern, PA, and is the manager of VFIJX. The Vanguard GNMA Admiral made its debut in February of 2001 and VFIJX has managed to accumulate roughly $11.38 billion in assets, as of the most recently available information. The fund is currently managed by Brian Conroy who has been in charge of the fund since May of 2019.
Performance
Of course, investors look for strong performance in funds. This fund in particular has delivered a 5-year annualized total return of 0.37%, and it sits in the middle third among its category peers. But if you are looking for a shorter time frame, it is also worth looking at its 3-year annualized total return of -2.93%, which places it in the top 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. The standard deviation of VFIJX over the past three years is 5.91% compared to the category average of 11.26%. Over the past 5 years, the standard deviation of the fund is 4.87% compared to the category average of 9.9%. This makes the fund less volatile than its peers over the past half-decade.
This fund has a beta of 0.87, meaning that it is less volatile than a broad market index of fixed income securities. Taking this into account, VFIJX has a negative alpha of -0.63, 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, VFIJX is a no load fund. It has an expense ratio of 0.11% compared to the category average of 0.77%. VFIJX is actually cheaper than its peers when you consider factors like cost.
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 GNMA Admiral ( VFIJX ) has a high Zacks Mutual Fund rank, and in conjunction with its comparatively similar performance, better 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. If you are more of a stock investor, make sure to also check out our Zacks Rank, and our full suite of tools we have available for novice and professional investors alike.