If investors are looking at the Government - Bonds: Misc fund category, make sure to pass over Vanguard Inflation-Protected Securites Admiral (VAIPX Quick QuoteVAIPX - Free Report) . VAIPX carries a Zacks Mutual Fund Rank of 4 (Sell), which is based on various forecasting factors like size, cost, and past performance.

Objective

We classify VAIPX in the Government - Bonds: Misc category, an area rife with potential choices. Government - Bonds: Misc funds hold securities issued by the federal government of the United States of America. These are seen as extremely low risk securities from a default perspective, and are often regarded as risk-free assets. This category stretches across the curve, so the yields and interest rate sensitivity will vary, though a mixed approach generally results in a medium yield and risk profile.

History of Fund/Manager

VAIPX finds itself in the Vanguard Group family, based out of Malvern, PA. The Vanguard Inflation-Protected Securites Admiral made its debut in June of 2005 and VAIPX has managed to accumulate roughly $13.57 billion in assets, as of the most recently available information. The fund's current manager, John Madziyire, has been in charge of the fund since November of 2021.

Performance

Obviously, what investors are looking for in these funds is strong performance relative to their peers. This fund has delivered a 5-year annualized total return of 1.96%, and is 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 -1.68%, 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. Compared to the category average of 12.01%, the standard deviation of VAIPX over the past three years is 7.09%. Over the past 5 years, the standard deviation of the fund is 6.19% compared to the category average of 12.43%. This makes the fund less volatile than its peers over the past half-decade.

With a beta of 0.63, this fund is less volatile than a broad market index of fixed income securities. Taking this into account, VAIPX has a positive alpha of 1.81, which measures performance on a risk-adjusted basis.

Expenses

As competition heats up in the mutual fund market, costs become increasingly important. Compared to its otherwise identical counterpart, a low-cost product will be an outperformer, all other things being equal. Thus, taking a closer look at cost-related metrics is vital for investors. In terms of fees, VAIPX is a no load fund. It has an expense ratio of 0.10% compared to the category average of 0.83%. VAIPX is actually cheaper than its peers when you consider factors like cost.

While the minimum initial investment for the product is $50,000, investors should also note that each subsequent investment needs to be at least $1.

Fees charged by investment advisors have not been taken into considiration. Returns would be less if those were included.

Bottom Line

Overall, even with its comparatively similar performance, better downside risk, and lower fees, Vanguard Inflation-Protected Securites Admiral ( VAIPX ) has a low Zacks Mutual Fund rank, and therefore looks a somewhat weak choice for investors right now.

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