Government Bond - Long fund seekers should consider taking a look at Vanguard Long-Term Treasury Investor (VUSTX Quick QuoteVUSTX - Free Report) . VUSTX bears a Zacks Mutual Fund Rank of 2 (Buy), which is based on various forecasting factors like size, cost, and past performance.

Objective

VUSTX is part of the Government Bond - Long section, a segment that boasts an array of possible selections. Government Bond - Long 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 focuses on the long end of the curve, and that results in higher yields, but greater sensitivity to interest rate fluctuations, too.

History of Fund/Manager

Vanguard Group is based in Malvern, PA, and is the manager of VUSTX. Since Vanguard Long-Term Treasury Investor made its debut in May of 1986, VUSTX has garnered more than $620.52 million in assets. The fund is currently managed by John Madziyire who 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. VUSTX has a 5-year annualized total return of -5.09% and is in the middle 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 -10.7%, 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. VUSTX's standard deviation over the past three years is 15.84% compared to the category average of 15.34%. The standard deviation of the fund over the past 5 years is 14.74% compared to the category average of 15.38%. This makes the fund less volatile than its peers over the past half-decade.

With a beta of 2.21, this fund is more volatile than a broad market index of fixed income securities. Taking this into account, VUSTX has a negative alpha of -1.43, 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 0.61%. VUSTX is actually cheaper than its peers when you consider factors like cost.

This fund requires a minimum initial investment of $3,000, and each subsequent investment should 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 Long-Term Treasury Investor ( VUSTX ) has a high Zacks Mutual Fund rank, and in conjunction with its comparatively similar performance, average downside risk, and lower fees, Vanguard Long-Term Treasury Investor ( VUSTX ) looks like a good potential choice for investors right now.

Don't stop here for your research on Government Bond - Long funds. We also have plenty more on our site in order to help you find the best possible fund for your portfolio. Make sure to check out www.zacks.com/funds/mutual-funds for more information about the world of funds, and feel free to compare VUSTX to its peers as well for additional information. And don't forget, Zacks has all of your needs covered on the equity side too! Make sure to check out Zacks.com for more information on our screening capabilities, Rank, and all our articles as well.