Vanguard GNMA Fund Investor Shares (VFIIX)
The Vanguard GNMA Fund Investor Shares (VFIIX) is an intermediate term bond fund to help provide a moderate level of income. This is mainly a government national mortgage association securities that are backed by the US government to help ensure on time payments of the principals and interest.
This fund has total net assets of $36.2 billion in 31 bonds. The average maturities of these bonds are 3.5 years with the average duration being 3.9 years. This mutual fund has a below average risk with a below average return. As compared to the benchmark of Barclays Capital US GNMA Bond Index for the past 3 years, this fund has had a Beta of 1.02 and an R squared of 0.99.
As of January 31, 2010, this fund has had an annualized return after taxes for the past year of 5.29%. For the past 10 years the annualized return was 6.23%, and since its inception in 1980, the annualized return has been 9.34%. The expense ratio of this mutual fund was at 0.23% on May 29, 2009. To invest in this fund, a minimum deposit of $3,000 is required.
The manager of this Vanguard fund is from the Wellington Management Company, LLP who has been advising Vanguard since 1980. The portfolio manager they assigned to this fund is Thomas L. Pappas. He was advising on this fund since 1994 and is a Senior Vice President and Partner at Wellington.
This is a conservative to moderate fund as classified by the Vanguard group that are only exposed to low to moderate share price fluctuations. The Vanguard GNMA Fund Investor Shares (VFIIX) is the right investment for those looking to have an income over a 4 to 6 year period without a great deal of growth. This is a low risk and low return investment that is relatively safe of all the Vanguard funds.