Vanguard GNMA Fund Investor Shares

Frequently Asked Questions About VFIIX

What does VFIIX invest in?

This bond fund focuses its investments on government mortgage-backed securities. It primarily holds Ginnie Mae (GNMA) securities, which are unique because they carry the explicit guarantee of the U.S. government and generally offer a more competitive yield than traditional U.S. Treasury bonds. In addition to general bond market risks, investors should be aware of prepayment risk. If mortgage refinancing becomes widespread, the fund's income stream is likely to decrease. This fund could be a suitable option for individuals aiming for steady monthly income over a medium-term investment horizon, as part of the fixed-income component of their portfolio. It's important to note that while the underlying government agency securities are guaranteed, this federal backing does not protect the fund's own share price from market fluctuations.

What is the expense ratio of VFIIX?

Vanguard GNMA Fund Investor Shares (VFIIX) charges an expense ratio of 0.21%. This is the annual fee deducted from fund assets to cover management and operations.

What is VFIIX's dividend yield?

VFIIX's trailing-twelve-month yield is 3.82%, calculated from the sum of dividends over the past year divided by the current price.

What is the duration of VFIIX?

Effective duration measures VFIIX's sensitivity to interest-rate changes: a duration of 6 means a 1% rate move shifts NAV by roughly 6% in the opposite direction. VFIIX's current duration is published on the fund's factsheet on the issuer's website.

What is the credit quality of VFIIX?

VFIIX's credit quality breakdown (the share of holdings rated AAA through CCC and below) is published on the fund's factsheet. Higher-quality (investment-grade) funds yield less but carry less default risk than high-yield / junk bond funds.

What is the yield to maturity of VFIIX?

Yield to maturity (YTM) is the total return you'd earn from VFIIX if every bond in the portfolio is held to maturity at the current price. VFIIX's YTM is published on the fund's factsheet on the issuer's website. It differs from the trailing-12-month yield because YTM reflects current bond prices rather than historical income paid.