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High Yield - Bonds fund seekers should consider taking a look at Vanguard High-Yield Corporate Investor (VWEHX - Free Report) . VWEHX has a Zacks Mutual Fund Rank of 1 (Strong Buy), which is based on nine forecasting factors like size, cost, and past performance.
Objective
VWEHX is classified in the High Yield - Bonds segment by Zacks, an area full of investment possibilities. High Yield - Bonds funds come in below investment grade, and are referred to as " junk " bonds for this reason. Compared to their investment grade peers, these funds are at a higher default risk, but typically pay out higher yields while posing similar interest rate risks.
History of Fund/Manager
VWEHX is a part of the Vanguard Group family of funds, a company based out of Malvern, PA. Vanguard High-Yield Corporate Investor debuted in December of 1978. Since then, VWEHX has accumulated assets of about $4.10 billion, according to the most recently available information. Michael L. Hong is the fund's current manager and has held that role since February of 2008.
Performance
Investors naturally seek funds with strong performance. VWEHX has a 5-year annualized total return of 5.56% and it sits in the top 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 6.02%, which places it in the top third during this time-frame.
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. VWEHX's standard deviation over the past three years is 4.23% compared to the category average of 6.65%. Over the past 5 years, the standard deviation of the fund is 4.53% compared to the category average of 7.2%. This makes the fund less volatile than its peers over the past half-decade.
This fund has a beta of 0.37, meaning that it is less volatile than a broad market index of fixed income securities. Taking this into account, VWEHX has a positive alpha of 4.09, which measures performance on a risk-adjusted basis.
Expenses
As competition heats up in the mutual fund market, costs become increasingly important. Compared to its otherwise identical counterpart, a low-cost product will be an outperformer, all other things being equal. Thus, taking a closer look at cost-related metrics is vital for investors. In terms of fees, VWEHX is a no load fund. It has an expense ratio of 0.23% compared to the category average of 1.02%. VWEHX is actually cheaper than its peers when you consider factors like cost.
While the minimum initial investment for the product is $3,000, investors should also note that each subsequent investment needs to be at least $1.
Bottom Line
Overall, Vanguard High-Yield Corporate Investor ( VWEHX ) has a high Zacks Mutual Fund rank, and in conjunction with its comparatively strong performance, average downside risk, and lower fees, Vanguard High-Yield Corporate Investor ( VWEHX ) looks like a good potential choice for investors right now.
For additional information on this product, or to compare it to other mutual funds in the High Yield - Bonds, make sure to go to www.zacks.com/funds/mutual-funds for additional information. Want to learn even more? We have a full suite of tools on stocks that you can use to find the best choices for your portfolio too, no matter what kind of investor you are.
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Is VWEHX a Strong Bond Fund Right Now?
High Yield - Bonds fund seekers should consider taking a look at Vanguard High-Yield Corporate Investor (VWEHX - Free Report) . VWEHX has a Zacks Mutual Fund Rank of 1 (Strong Buy), which is based on nine forecasting factors like size, cost, and past performance.
Objective
VWEHX is classified in the High Yield - Bonds segment by Zacks, an area full of investment possibilities. High Yield - Bonds funds come in below investment grade, and are referred to as " junk " bonds for this reason. Compared to their investment grade peers, these funds are at a higher default risk, but typically pay out higher yields while posing similar interest rate risks.
History of Fund/Manager
VWEHX is a part of the Vanguard Group family of funds, a company based out of Malvern, PA. Vanguard High-Yield Corporate Investor debuted in December of 1978. Since then, VWEHX has accumulated assets of about $4.10 billion, according to the most recently available information. Michael L. Hong is the fund's current manager and has held that role since February of 2008.
Performance
Investors naturally seek funds with strong performance. VWEHX has a 5-year annualized total return of 5.56% and it sits in the top 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 6.02%, which places it in the top third during this time-frame.
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. VWEHX's standard deviation over the past three years is 4.23% compared to the category average of 6.65%. Over the past 5 years, the standard deviation of the fund is 4.53% compared to the category average of 7.2%. This makes the fund less volatile than its peers over the past half-decade.
This fund has a beta of 0.37, meaning that it is less volatile than a broad market index of fixed income securities. Taking this into account, VWEHX has a positive alpha of 4.09, which measures performance on a risk-adjusted basis.
Expenses
As competition heats up in the mutual fund market, costs become increasingly important. Compared to its otherwise identical counterpart, a low-cost product will be an outperformer, all other things being equal. Thus, taking a closer look at cost-related metrics is vital for investors. In terms of fees, VWEHX is a no load fund. It has an expense ratio of 0.23% compared to the category average of 1.02%. VWEHX is actually cheaper than its peers when you consider factors like cost.
While the minimum initial investment for the product is $3,000, investors should also note that each subsequent investment needs to be at least $1.
Bottom Line
Overall, Vanguard High-Yield Corporate Investor ( VWEHX ) has a high Zacks Mutual Fund rank, and in conjunction with its comparatively strong performance, average downside risk, and lower fees, Vanguard High-Yield Corporate Investor ( VWEHX ) looks like a good potential choice for investors right now.
For additional information on this product, or to compare it to other mutual funds in the High Yield - Bonds, make sure to go to www.zacks.com/funds/mutual-funds for additional information. Want to learn even more? We have a full suite of tools on stocks that you can use to find the best choices for your portfolio too, no matter what kind of investor you are.