Mutual Fund Bond fund seekers should consider taking a look at Vanguard Core Bond Investor (VCORX). VCORX carries a Zacks Mutual Fund Rank of 1 (Strong Buy), which is based on various forecasting factors like size, cost, and past performance.
History of Fund/Manager
Vanguard Group is based in Malvern, PA, and is the manager of VCORX. Vanguard Core Bond Investor made its debut in March of 2016, and since then, VCORX has accumulated about $224.57 million in assets, per the most up-to-date date available. The fund is currently managed by a team of investment professionals.
Performance
Investors naturally seek funds with strong performance. VCORX has a 5-year annualized total return of 1.33% 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 -2.03%, 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. Compared to the category average of 11.73%, the standard deviation of VCORX over the past three years is 6.59%. The fund’s standard deviation over the past 5 years is 5.64% compared to the category average of 10.24%. This makes the fund less volatile than its peers over the past half-decade.
This fund has a beta of 1.01, meaning that it is more volatile than a broad market index of fixed income securities. Taking this into account, VCORX has a positive alpha of 0.45, which measures performance on a risk-adjusted basis.
Expenses
Costs are increasingly important for mutual fund investing, and particularly as competition heats up in this market. And all things being equal, a lower cost product will outperform its otherwise identical counterpart, so taking a closer look at these metrics is key for investors. In terms of fees, VCORX is a no load fund. It has an expense ratio of 0.20% compared to the category average of 0.75%. Looking at the fund from a cost perspective, VCORX is actually cheaper than its peers.
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.
Bottom Line
Overall, Vanguard Core Bond Investor ( VCORX ) has a high Zacks Mutual Fund rank, and in conjunction with its comparatively strong performance, average downside risk, and lower fees, this fund 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 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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