Yahoo Finance Is VTIPX a Strong Bond Fund Right Now?
If you're looking for a Mutual Fund Bond fund category, then a possible option is Vanguard Short Term Inflation Protected Security Index Investor (VTIPX). The fund does not have a Zacks Mutual Fund Rank, though we have been able to explore other metrics like performance, volatility, and cost.
History of Fund/Manager
VTIPX finds itself in the Vanguard Group family, based out of Malvern, PA. Since Vanguard Short Term Inflation Protected Security Index Investor made its debut in October of 2012, VTIPX has garnered more than $2.97 million in assets. The fund's current manager, Joshua Barrickman, has been in charge of the fund since October of 2012.
Performance
Of course, investors look for strong performance in funds. VTIPX has a 5-year annualized total return of 3.05% and is 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 2.14%, which places it in the top 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. Over the past three years, VTIPX's standard deviation comes in at 3.25%, compared to the category average of 12.18%. The standard deviation of the fund over the past 5 years is 2.81% compared to the category average of 12.38%. This makes the fund less volatile than its peers over the past half-decade.
This fund has a beta of 0.21, meaning that it is less volatile than a broad market index of fixed income securities. Taking this into account, VTIPX has a positive alpha of 1.51, 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, VTIPX is a no load fund. It has an expense ratio of 0.14% compared to the category average of 0.82%. From a cost perspective, VTIPX is actually cheaper than its peers.
Investors should also note that the minimum initial investment for the product is $0 and that each subsequent investment has no minimum amount.
Fees charged by investment advisors have not been taken into considiration. Returns would be less if those were included.
Bottom Line
Don't stop here for your research on Mutual Fund Bond 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 VTIPX to its peers as well 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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