Which Vanguard Bond Fund Is Right for You?

In Vanguard’s large stable of bond funds, not all make the cut

      View All  
Which Vanguard Bond Fund Is Right for You?

Intermediate-Term Investment-Grade: Buy

VFICXchart Which Vanguard Bond Fund Is Right for You?Expenses: 0.2%

Given where interest rates are right now, I’d go for the higher yields and better returns from Vanguard Intermediate-Term Investment-Grade Fund (VFICX).

As with Intermediate-Term Treasury, this fund generally gives the advantage of decent returns with only mid-range interest-rate risk. The difference is that this actively managed fund typically focuses on corporate bonds, with less than 10% of the portfolio in interest-rate-sensitive government-backed bonds. The result is a higher yield — 2.18% compared to 0.8% for Intermediate-Term Treasury, or a pickup of 138 basis points.

If I had to buy just one straight intermediate-term bond fund, this would be it.

Article printed from InvestorPlace Media, http://investorplace.com/2013/06/which-vanguard-bond-fund-is-for-you/.

©2015 InvestorPlace Media, LLC

Comments are currently unavailable. Please check back soon.