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Having trouble finding a Mutual Fund Bond fund? Vanguard Long-Term Treasury Investor (VUSTX - Free Report) is a potential starting point. VUSTX 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 based in Malvern, PA, and is the manager of VUSTX. Vanguard Long-Term Treasury Investor made its debut in May of 1986, and since then, VUSTX has accumulated about $593.78 million in assets, per the most up-to-date date available. The fund's current manager, John Madziyire, has been in charge of the fund since November of 2021.
Performance
Of course, investors look for strong performance in funds. This fund carries a 5-year annualized total return of 0.18%, and it sits in the top 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 -11.55%, 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 VUSTX over the past three years is 13.62% compared to the category average of 16.1%. Over the past 5 years, the standard deviation of the fund is 14.04% compared to the category average of 15.13%. This makes the fund less volatile than its peers over the past half-decade.
VUSTX carries a beta of 2.33, meaning that the fund is more volatile than a broad market index of fixed income securities. With this in mind, it has a positive alpha of 0.03, 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, VUSTX is a no load fund. It has an expense ratio of 0.20% compared to the category average of 0.82%. VUSTX is actually cheaper than its peers when you consider factors like cost.
Investors should also note that the minimum initial investment for the product is $3,000 and that each subsequent investment needs to be at $1.
Bottom Line
Overall, Vanguard Long-Term Treasury Investor ( VUSTX ) 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.
Want even more information about VUSTX? Then go over to Zacks.com and check out our mutual fund comparison tool, and all of the other great features that we have to help you with your mutual fund analysis 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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Is VUSTX a Strong Bond Fund Right Now?
Having trouble finding a Mutual Fund Bond fund? Vanguard Long-Term Treasury Investor (VUSTX - Free Report) is a potential starting point. VUSTX 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 based in Malvern, PA, and is the manager of VUSTX. Vanguard Long-Term Treasury Investor made its debut in May of 1986, and since then, VUSTX has accumulated about $593.78 million in assets, per the most up-to-date date available. The fund's current manager, John Madziyire, has been in charge of the fund since November of 2021.
Performance
Of course, investors look for strong performance in funds. This fund carries a 5-year annualized total return of 0.18%, and it sits in the top 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 -11.55%, 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 VUSTX over the past three years is 13.62% compared to the category average of 16.1%. Over the past 5 years, the standard deviation of the fund is 14.04% compared to the category average of 15.13%. This makes the fund less volatile than its peers over the past half-decade.
VUSTX carries a beta of 2.33, meaning that the fund is more volatile than a broad market index of fixed income securities. With this in mind, it has a positive alpha of 0.03, 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, VUSTX is a no load fund. It has an expense ratio of 0.20% compared to the category average of 0.82%. VUSTX is actually cheaper than its peers when you consider factors like cost.
Investors should also note that the minimum initial investment for the product is $3,000 and that each subsequent investment needs to be at $1.
Bottom Line
Overall, Vanguard Long-Term Treasury Investor ( VUSTX ) 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.
Want even more information about VUSTX? Then go over to Zacks.com and check out our mutual fund comparison tool, and all of the other great features that we have to help you with your mutual fund analysis 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.