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If you have been looking for Government Mortgage - Intermediate funds, a place to start could be Vanguard GNMA Admiral (VFIJX - Free Report) . VFIJX bears a Zacks Mutual Fund Rank of 1 (Strong Buy), which is based on various forecasting factors like size, cost, and past performance.
Objective
The world of Government Mortgage - Intermediate funds is an area filled with choices, such as VFIJX. A mortgage-backed security (MBS) is a type of asset-backed security that packages mortgages together and then sells off the pooled securities. Government Mortgage - Intermediate funds focus on this market; this fund category presents a medium risk and yield profile, and concentrates on MBS with at least three years to maturity but less than 10.
History of Fund/Manager
Vanguard Group is based in Malvern, PA, and is the manager of VFIJX. Vanguard GNMA Admiral made its debut in February of 2001, and since then, VFIJX has accumulated about $9.81 billion in assets, per the most up-to-date date available. The fund is currently managed by Brian Conroy who has been in charge of the fund since May of 2019.
Performance
Investors naturally seek funds with strong performance. VFIJX has a 5-year annualized total return of 0.19% and is 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 -0.91%, which places it in the top 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, VFIJX's standard deviation comes in at 7.79%, compared to the category average of 10.69%. Looking at the past 5 years, the fund's standard deviation is 6.12% compared to the category average of 10.43%. This makes the fund less volatile than its peers over the past half-decade.
With a beta of 1.01, this fund is more volatile than a broad market index of fixed income securities. Taking this into account, VFIJX has a negative alpha of -0.28, 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, VFIJX is a no load fund. It has an expense ratio of 0.11% compared to the category average of 0.75%. From a cost perspective, VFIJX is actually cheaper than its peers.
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.
Fees charged by investment advisors have not been taken into considiration. Returns would be less if those were included.
Bottom Line
Overall, Vanguard GNMA Admiral ( VFIJX ) 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.
For additional information on the Government Mortgage - Intermediate area of the mutual fund world, make sure to check out www.zacks.com/funds/mutual-funds. There, you can see more about the ranking process, and dive even deeper into VFIJX too 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 VFIJX a Strong Bond Fund Right Now?
If you have been looking for Government Mortgage - Intermediate funds, a place to start could be Vanguard GNMA Admiral (VFIJX - Free Report) . VFIJX bears a Zacks Mutual Fund Rank of 1 (Strong Buy), which is based on various forecasting factors like size, cost, and past performance.
Objective
The world of Government Mortgage - Intermediate funds is an area filled with choices, such as VFIJX. A mortgage-backed security (MBS) is a type of asset-backed security that packages mortgages together and then sells off the pooled securities. Government Mortgage - Intermediate funds focus on this market; this fund category presents a medium risk and yield profile, and concentrates on MBS with at least three years to maturity but less than 10.
History of Fund/Manager
Vanguard Group is based in Malvern, PA, and is the manager of VFIJX. Vanguard GNMA Admiral made its debut in February of 2001, and since then, VFIJX has accumulated about $9.81 billion in assets, per the most up-to-date date available. The fund is currently managed by Brian Conroy who has been in charge of the fund since May of 2019.
Performance
Investors naturally seek funds with strong performance. VFIJX has a 5-year annualized total return of 0.19% and is 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 -0.91%, which places it in the top 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, VFIJX's standard deviation comes in at 7.79%, compared to the category average of 10.69%. Looking at the past 5 years, the fund's standard deviation is 6.12% compared to the category average of 10.43%. This makes the fund less volatile than its peers over the past half-decade.
With a beta of 1.01, this fund is more volatile than a broad market index of fixed income securities. Taking this into account, VFIJX has a negative alpha of -0.28, 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, VFIJX is a no load fund. It has an expense ratio of 0.11% compared to the category average of 0.75%. From a cost perspective, VFIJX is actually cheaper than its peers.
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.
Fees charged by investment advisors have not been taken into considiration. Returns would be less if those were included.
Bottom Line
Overall, Vanguard GNMA Admiral ( VFIJX ) 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.
For additional information on the Government Mortgage - Intermediate area of the mutual fund world, make sure to check out www.zacks.com/funds/mutual-funds. There, you can see more about the ranking process, and dive even deeper into VFIJX too 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.