Any investors hoping to find a Government - Bonds: Misc fund might consider looking past Vanguard Inflation Protected Securities Fund (VIPSX Quick QuoteVIPSX - Free Report) . VIPSX carries 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 VIPSX 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 VIPSX. Vanguard Inflation Protected Securities Fund debuted in June of 2000. Since then, VIPSX has accumulated assets of about $2.26 billion, according to the most recently available information. 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. VIPSX has a 5-year annualized total return of 2.1% 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 -1.85%, 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 11.99%, the standard deviation of VIPSX over the past three years is 7%. The fund's standard deviation over the past 5 years is 6.21% compared to the category average of 12.44%. This makes the fund less volatile than its peers over the past half-decade.

This fund has a beta of 0.55, meaning that it is less volatile than a broad market index of fixed income securities. Taking this into account, VIPSX has a positive alpha of 1.74, 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, VIPSX is a no load fund. It has an expense ratio of 0.20% compared to the category average of 0.82%. VIPSX is actually cheaper than its peers when you consider factors like cost.

Investors should also note that the minimum initial investment for the product is $3,000 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 Securities Fund ( VIPSX ) has a low Zacks Mutual Fund rank, and therefore looks a somewhat weak choice for investors right now.

This could just be the start of your research on VIPSXin the Government - Bonds: Misc 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. 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.