Vanguard Short-Term Investment-Grade Bond Fund (VFSTX) Review
This Vanguard Short-Term Investment-Grade Bond Fund (VFSTX) Review takes a close look at this low risk fund.
The main focus of this fund is to invest in governmental short term bonds and investment grade bonds that change very little. This is a fund investors should choose if they only want to make a short term investment. There is a $3000 minimum investment to take part in this fund. As of 10/2/09 the stock value of this fund was at $10.56. The 52 week low of this funds price was $9.57 with the high being $10.57.
The total assets of this fund are currently at $28.4 billion. This fund has 987 bonds for which were invested in. the average maturity of the bonds held are 2.5 years
The performance of this fund since its inception in 1982 on returns before taxes is 7.12%. The five year return before taxes was at 4.11% and during the recent recession this past year the returns before taxes were 9.92%.
The types of bonds invested in are asset backed at 18.9%, commercial mortgage-backed at 3.5%, finance at 27.2%, foreign at 1.1%, government mortgage backed at 1.9%, industrial at 23.5%, short term reserves at 11.1%, treasury agency at 6.5% utilities at 4.2% and the remainder at 2.1% is unspecified.
The yields to maturity of these bonds are at 3.5% with the average duration of 1.9 years.
Vanguard Short-Term Investment-Grade Bond Fund (VFSTX) Review shows this is one of the best vanguard funds with almost a double digit return during an economic recession.