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If you have been looking for Mutual Fund Bond funds, a place to start could be Vanguard Short-Term Federal Investor (VSGBX - Free Report) . VSGBX 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 VSGBX, and the company is based out of Malvern, PA. Since Vanguard Short-Term Federal Investor made its debut in December of 1987, VSGBX has garnered more than $417.95 million in assets. The fund is currently managed by Brian Quigley who has been in charge of the fund since January of 2015.
Performance
Of course, investors look for strong performance in funds. VSGBX has a 5-year annualized total return of 0.84% and is in the top third among its category peers. If you're interested in shorter time frames, do not dismiss looking at the fund's 3 -year annualized total return of -1.64%, which places it in the middle third during this time-frame.
It is important to note that the product's returns may not reflect all its expenses. Any fees not reflected would lower the returns. Total returns do not reflect the fund's [%] sale charge. If sales charges were included, total returns would have been lower.
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. Over the past three years, VSGBX's standard deviation comes in at 2.33%, compared to the category average of 8.29%. Looking at the past 5 years, the fund's standard deviation is 2.18% compared to the category average of 8.71%. This makes the fund less volatile than its peers over the past half-decade.
This fund has a beta of 0.38, meaning that it is less volatile than a broad market index of fixed income securities. Taking this into account, VSGBX has a negative alpha of -0.36, 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, VSGBX is a no load fund. It has an expense ratio of 0.20% compared to the category average of 0.64%. Looking at the fund from a cost perspective, VSGBX is actually cheaper than its peers.
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
Fees charged by investment advisors have not been taken into considiration. Returns would be less if those were included.
Bottom Line
Overall, Vanguard Short-Term Federal Investor ( VSGBX ) has a high Zacks Mutual Fund rank, and in conjunction with its comparatively strong performance, better downside risk, and lower fees, this fund looks like a good potential choice for investors right now.
Want even more information about VSGBX? 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. 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 VSGBX a Strong Bond Fund Right Now?
If you have been looking for Mutual Fund Bond funds, a place to start could be Vanguard Short-Term Federal Investor (VSGBX - Free Report) . VSGBX 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 VSGBX, and the company is based out of Malvern, PA. Since Vanguard Short-Term Federal Investor made its debut in December of 1987, VSGBX has garnered more than $417.95 million in assets. The fund is currently managed by Brian Quigley who has been in charge of the fund since January of 2015.
Performance
Of course, investors look for strong performance in funds. VSGBX has a 5-year annualized total return of 0.84% and is in the top third among its category peers. If you're interested in shorter time frames, do not dismiss looking at the fund's 3 -year annualized total return of -1.64%, which places it in the middle third during this time-frame.
It is important to note that the product's returns may not reflect all its expenses. Any fees not reflected would lower the returns. Total returns do not reflect the fund's [%] sale charge. If sales charges were included, total returns would have been lower.
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. Over the past three years, VSGBX's standard deviation comes in at 2.33%, compared to the category average of 8.29%. Looking at the past 5 years, the fund's standard deviation is 2.18% compared to the category average of 8.71%. This makes the fund less volatile than its peers over the past half-decade.
This fund has a beta of 0.38, meaning that it is less volatile than a broad market index of fixed income securities. Taking this into account, VSGBX has a negative alpha of -0.36, 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, VSGBX is a no load fund. It has an expense ratio of 0.20% compared to the category average of 0.64%. Looking at the fund from a cost perspective, VSGBX is actually cheaper than its peers.
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
Fees charged by investment advisors have not been taken into considiration. Returns would be less if those were included.
Bottom Line
Overall, Vanguard Short-Term Federal Investor ( VSGBX ) has a high Zacks Mutual Fund rank, and in conjunction with its comparatively strong performance, better downside risk, and lower fees, this fund looks like a good potential choice for investors right now.
Want even more information about VSGBX? 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. 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.