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On the lookout for a Muni - Bonds fund? Starting with Vanguard Intermediate-Term Tax-Exempt Admiral (VWIUX - Free Report) is one possibility. VWIUX carries a Zacks Mutual Fund Rank of 1 (Strong Buy), which is based on various forecasting factors like size, cost, and past performance.
Objective
We classify VWIUX in the Muni - Bonds category, an area rife with potential choices. Muni - Bonds funds focus their investments on debt securities issued by state and local governments. These are typically used to pay for the construction of infrastructure, the operation of public schools, and other municipal functions. These securities can come in the form of revenue bonds, which are backed by taxes, as well as " general obligation " bonds that are not backed by a defined source. Investors are usually interested that come with most municipal bonds, which can be especially important for those in higher tax brackets.
History of Fund/Manager
VWIUX is a part of the Vanguard Group family of funds, a company based out of Malvern, PA. Vanguard Intermediate-Term Tax-Exempt Admiral made its debut in February of 2001, and since then, VWIUX has accumulated about $73.76 billion in assets, per the most up-to-date date available. James D'Arcy is the fund's current manager and has held that role since June of 2013.
Performance
Of course, investors look for strong performance in funds. VWIUX has a 5-year annualized total return of 1.36% and it sits 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 0.24%, 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. The standard deviation of VWIUX over the past three years is 6.24% compared to the category average of 10.29%. Looking at the past 5 years, the fund's standard deviation is 5.5% compared to the category average of 10.43%. This makes the fund less volatile than its peers over the past half-decade.
This fund has a beta of 0.68, meaning that it is less volatile than a broad market index of fixed income securities. Taking this into account, VWIUX has a positive alpha of 0.1, which measures performance on a risk-adjusted basis.
Ratings
Investors should also consider a bond's rating, which is a grade ( 'AAA' to 'D' ) given to a bond that indicates its credit quality. With this letter scale in mind, VWIUX has 59.52% in high quality bonds rated at least 'AA' or higher, while 35.87% are of medium quality, with ratings of 'A' to 'BBB'. The fund has an average quality of AA, and focuses on high quality securities.
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, VWIUX is a no load fund. It has an expense ratio of 0.09% compared to the category average of 0.78%. So, VWIUX is actually cheaper than its peers from a cost perspective.
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 Intermediate-Term Tax-Exempt Admiral ( VWIUX ) 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.
This could just be the start of your research on VWIUXin the Muni - Bonds category. Consider going to www.zacks.com/funds/mutual-funds for additional information about this fund, and all the others that we rank as well for additional information. Zacks provides a full suite of tools to help you analyze your portfolio - both funds and stocks - in the most efficient way possible.
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Is VWIUX a Strong Bond Fund Right Now?
On the lookout for a Muni - Bonds fund? Starting with Vanguard Intermediate-Term Tax-Exempt Admiral (VWIUX - Free Report) is one possibility. VWIUX carries a Zacks Mutual Fund Rank of 1 (Strong Buy), which is based on various forecasting factors like size, cost, and past performance.
Objective
We classify VWIUX in the Muni - Bonds category, an area rife with potential choices. Muni - Bonds funds focus their investments on debt securities issued by state and local governments. These are typically used to pay for the construction of infrastructure, the operation of public schools, and other municipal functions. These securities can come in the form of revenue bonds, which are backed by taxes, as well as " general obligation " bonds that are not backed by a defined source. Investors are usually interested that come with most municipal bonds, which can be especially important for those in higher tax brackets.
History of Fund/Manager
VWIUX is a part of the Vanguard Group family of funds, a company based out of Malvern, PA. Vanguard Intermediate-Term Tax-Exempt Admiral made its debut in February of 2001, and since then, VWIUX has accumulated about $73.76 billion in assets, per the most up-to-date date available. James D'Arcy is the fund's current manager and has held that role since June of 2013.
Performance
Of course, investors look for strong performance in funds. VWIUX has a 5-year annualized total return of 1.36% and it sits 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 0.24%, 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. The standard deviation of VWIUX over the past three years is 6.24% compared to the category average of 10.29%. Looking at the past 5 years, the fund's standard deviation is 5.5% compared to the category average of 10.43%. This makes the fund less volatile than its peers over the past half-decade.
This fund has a beta of 0.68, meaning that it is less volatile than a broad market index of fixed income securities. Taking this into account, VWIUX has a positive alpha of 0.1, which measures performance on a risk-adjusted basis.
Ratings
Investors should also consider a bond's rating, which is a grade ( 'AAA' to 'D' ) given to a bond that indicates its credit quality. With this letter scale in mind, VWIUX has 59.52% in high quality bonds rated at least 'AA' or higher, while 35.87% are of medium quality, with ratings of 'A' to 'BBB'. The fund has an average quality of AA, and focuses on high quality securities.
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, VWIUX is a no load fund. It has an expense ratio of 0.09% compared to the category average of 0.78%. So, VWIUX is actually cheaper than its peers from a cost perspective.
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 Intermediate-Term Tax-Exempt Admiral ( VWIUX ) 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.
This could just be the start of your research on VWIUXin the Muni - Bonds category. Consider going to www.zacks.com/funds/mutual-funds for additional information about this fund, and all the others that we rank as well for additional information. Zacks provides a full suite of tools to help you analyze your portfolio - both funds and stocks - in the most efficient way possible.