Is VTABX a Strong Bond Fund Right Now?
If you've been stuck searching for Mutual Fund Bond funds, consider Vanguard Total International Bond Index Admiral (VTABX) as a possibility. 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
Vanguard Group is responsible for VTABX, and the company is based out of Malvern, PA. The Vanguard Total International Bond Index Admiral made its debut in May of 2013 and VTABX has managed to accumulate roughly $23.23 billion in assets, as of the most recently available information. The fund's current manager, Joshua Barrickman, has been in charge of the fund since May of 2013.
Performance
Obviously, what investors are looking for in these funds is strong performance relative to their peers. This fund has delivered a 5-year annualized total return of -0.02%, and is in the bottom third among its category peers. Investors who prefer analyzing shorter time frames should look at its 3-year annualized total return of -4.22%, which places it in the bottom 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, VTABX's standard deviation comes in at 5.46%, compared to the category average of 12.97%. The standard deviation of the fund over the past 5 years is 5.01% compared to the category average of 13.96%. This makes the fund less volatile than its peers over the past half-decade.
VTABX carries a beta of 0.76, meaning that the fund is less volatile than a broad market index of fixed income securities. With this in mind, it has a negative alpha of -0.49, 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, VTABX is a no load fund. It has an expense ratio of 0.11% compared to the category average of 0.87%. VTABX 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
For additional information on this product, or to compare it to other mutual funds in the Mutual Fund Bond, 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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