There are plenty of choices in the Government - Bonds: Misc category, but where should you start your research? Well, one fund that may not be worth investigating is Vanguard Inflation-Protected Securites Admiral (VAIPX Quick QuoteVAIPX - Free Report) . VAIPX has a Zacks Mutual Fund Rank of 5 (Strong 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

Vanguard Group is based in Malvern, PA, and is the manager of VAIPX. Vanguard Inflation-Protected Securites Admiral made its debut in June of 2005, and since then, VAIPX has accumulated about $13.44 billion in assets, per the most up-to-date date available. The fund is currently managed by John Madziyire who has been in charge of the fund since November of 2021.

Performance

Of course, investors look for strong performance in funds. This fund carries a 5-year annualized total return of 2.15%, and it sits in the middle 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 -1.58%, 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. The standard deviation of VAIPX over the past three years is 7.07% compared to the category average of 12.09%. Looking at the past 5 years, the fund's standard deviation is 6.22% compared to the category average of 12.42%. This makes the fund less volatile than its peers over the past half-decade.

With a beta of 0.61, this fund is less volatile than a broad market index of fixed income securities. Taking this into account, VAIPX has a positive alpha of 2.01, 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, VAIPX is a no load fund. It has an expense ratio of 0.10% compared to the category average of 0.82%. Looking at the fund from a cost perspective, VAIPX is actually cheaper than its peers.

Investors should also note that the minimum initial investment for the product is $50,000 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, 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.

Your research on the Government - Bonds: Misc segment doesn't have to stop here. You can check out all the great mutual fund tools we have to offer by going to www.zacks.com/funds/mutual-funds to see the additional features we offer 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.