Is Vanguard Total Bond Market Index Admiral (VBTLX) a Strong Mutual Fund Pick Right Now?

Looking for an Index fund? You may want to consider Vanguard Total Bond Market Index Admiral (VBTLX) as a possible option. VBTLX has no Zacks Mutual Fund Rank, but we have been able to look into other metrics like performance, volatility, and cost.History of Fund/ManagerVanguard Group is based in Malvern, PA, and is the manager of VBTLX. The Vanguard Total Bond Market Index Admiral made its debut in November of 2001 and VBTLX has managed to accumulate roughly $101.31 billion in assets, as of the most recently available information. The fund is currently managed by Joshua Barrickman who has been in charge of the fund since February of 2013.PerformanceInvestors naturally seek funds with strong performance. This fund in particular has delivered a 5-year annualized total return of -0.56%, and it sits in the middle 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 -0.49%, which places it in the middle 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, VBTLX's standard deviation comes in at 7.66%, compared to the category average of 12.79%. Over the past 5 years, the standard deviation of the fund is 6.32% compared to the category average of 13.55%. This makes the fund less volatile than its peers over the past half-decade.Risk FactorsInvestors should note that the fund has a 5-year beta of 1, which means it is hypothetically as volatile as the market at large. Another factor to consider is alpha, as it reflects a portfolio's performance on a risk-adjusted basis relative to a benchmark-in this case, the S&P 500. The fund has produced a negative alpha over the past 5 years of -0.05, which shows that managers in this portfolio find it difficult to pick securities that generate better-than-benchmark returns.ExpensesCosts 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, VBTLX is a no load fund. It has an expense ratio of 0.05% compared to the category average of 0.86%. So, VBTLX is actually cheaper than its peers from a cost perspective.Investors need to be aware that with this product, the minimum initial investment is $3,000; each subsequent investment needs to be at least $1.Fees charged by investment advisors have not been taken into considiration. Returns would be less if those were included.Bottom LineDon't stop here for your research on Index 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 VBTLX to its peers as well for additional information. Zacks provides a full suite of tools to help you analyze your portfolio - both funds and stocks - in the most efficient way possible.5 Stocks Set to DoubleEach was handpicked by a Zacks expert as the #1 favorite stock to gain +100% or more in 2024. While not all picks can be winners, previous recommendations have soared +143.0%, +175.9%, +498.3% and +673.0%.Most of the stocks in this report are flying under Wall Street radar, which provides a great opportunity to get in on the ground floor.Today, See These 5 Potential Home Runs >>Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Get Your Free (VBTLX): Fund Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).Zacks Investment ResearchWeiter zum vollständigen Artikel bei Zacks Weiter zum vollständigen Artikel bei Zacks