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Government - Bonds: Misc fund seekers may want to consider taking a look at Vanguard Inflation-Protected Securites Admiral (VAIPX - Free Report) . VAIPX bears a Zacks Mutual Fund Rank of 3 (Hold), which is based on various forecasting factors like size, cost, and past performance.
Objective
VAIPX is one of many Government - Bonds: Misc funds to choose from. In their portfolios,Government - Bonds: Misc funds hold securities issued by the United States' federal government, which are often seen as risk-free assets and described as extremely low-risk from a default perspective. While a mixed approach usually results in a medium yield and risk profile, this fund category focuses across the curve, meaning the yields and interest rate sensitivity will vary.
History of Fund/Manager
VAIPX is a part of the Vanguard Group family of funds, a company based out of Malvern, PA. Since Vanguard Inflation-Protected Securites Admiral made its debut in June of 2005, VAIPX has garnered more than $13.82 billion in assets. 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 has delivered a 5-year annualized total return of 1.31%, and it sits 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 3.42%, 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. VAIPX's standard deviation over the past three years is 4.51% compared to the category average of 8.65%. The standard deviation of the fund over the past 5 years is 6.06% compared to the category average of 10.55%. This makes the fund less volatile than its peers over the past half-decade.
Bond Duration
Modified duration is a measure of a given bond's interest rate sensitivity, so when judging how fixed income securities will respond in a shifting rate environment, it is an excellent figure to look at.
If you believe interest rates will rise, this is an important factor to look at. VAIPX has a modified duration of 6.42, which suggests that the fund will decline 6.42% for every hundred-basis-point increase in interest rates.
With a beta of 0.71, this fund is less volatile than a broad market index of fixed income securities. Taking this into account, VAIPX has a positive alpha of 0.43 , which measures performance on a risk-adjusted basis.
Expenses
For investors, taking a closer look at cost-related metrics is key, since costs are increasingly important for mutual fund investing. Competition is heating up in this space, and a lower cost product will likely outperform its otherwise identical counterpart, all things being equal. In terms of fees, VAIPX is a no load fund. It has an expense ratio of 0.10% compared to the category average of 0.80%. So, VAIPX 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 consideration. Returns would be less if those were included.
Bottom Line
Overall, Vanguard Inflation-Protected Securites Admiral ( VAIPX ) has a neutral Zacks Mutual Fund rank, and in conjunction with its comparatively similar performance, average downside risk, and lower fees, Vanguard Inflation-Protected Securites Admiral ( VAIPX ) looks like a somewhat average choice for investors right now.
For additional information on the Government - Bonds: Misc 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 VAIPX too for additional information. If you want to check out our stock reports as well, make sure to go to Zacks.com to see all of the great tools we have to offer, including our time-tested Zacks Rank.
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Is VAIPX a Strong Bond Fund Right Now?
Government - Bonds: Misc fund seekers may want to consider taking a look at Vanguard Inflation-Protected Securites Admiral (VAIPX - Free Report) . VAIPX bears a Zacks Mutual Fund Rank of 3 (Hold), which is based on various forecasting factors like size, cost, and past performance.
Objective
VAIPX is one of many Government - Bonds: Misc funds to choose from. In their portfolios,Government - Bonds: Misc funds hold securities issued by the United States' federal government, which are often seen as risk-free assets and described as extremely low-risk from a default perspective. While a mixed approach usually results in a medium yield and risk profile, this fund category focuses across the curve, meaning the yields and interest rate sensitivity will vary.
History of Fund/Manager
VAIPX is a part of the Vanguard Group family of funds, a company based out of Malvern, PA. Since Vanguard Inflation-Protected Securites Admiral made its debut in June of 2005, VAIPX has garnered more than $13.82 billion in assets. 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 has delivered a 5-year annualized total return of 1.31%, and it sits 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 3.42%, 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. VAIPX's standard deviation over the past three years is 4.51% compared to the category average of 8.65%. The standard deviation of the fund over the past 5 years is 6.06% compared to the category average of 10.55%. This makes the fund less volatile than its peers over the past half-decade.
Bond Duration
Modified duration is a measure of a given bond's interest rate sensitivity, so when judging how fixed income securities will respond in a shifting rate environment, it is an excellent figure to look at.
If you believe interest rates will rise, this is an important factor to look at. VAIPX has a modified duration of 6.42, which suggests that the fund will decline 6.42% for every hundred-basis-point increase in interest rates.
With a beta of 0.71, this fund is less volatile than a broad market index of fixed income securities. Taking this into account, VAIPX has a positive alpha of 0.43 , which measures performance on a risk-adjusted basis.Expenses
For investors, taking a closer look at cost-related metrics is key, since costs are increasingly important for mutual fund investing. Competition is heating up in this space, and a lower cost product will likely outperform its otherwise identical counterpart, all things being equal. In terms of fees, VAIPX is a no load fund. It has an expense ratio of 0.10% compared to the category average of 0.80%. So, VAIPX 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 consideration. Returns would be less if those were included.
Bottom Line
Overall, Vanguard Inflation-Protected Securites Admiral ( VAIPX ) has a neutral Zacks Mutual Fund rank, and in conjunction with its comparatively similar performance, average downside risk, and lower fees, Vanguard Inflation-Protected Securites Admiral ( VAIPX ) looks like a somewhat average choice for investors right now.
For additional information on the Government - Bonds: Misc 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 VAIPX too for additional information. If you want to check out our stock reports as well, make sure to go to Zacks.com to see all of the great tools we have to offer, including our time-tested Zacks Rank.