Vanguard GNMA Fund Admiral Shares

Frequently Asked Questions About VFIJX

What does VFIJX invest in?

This fixed-income offering concentrates its investments in mortgage-backed securities guaranteed by the U.S. government. Its portfolio predominantly comprises Ginnie Mae (GNMA) instruments, which benefit from the full backing of the U.S. government and generally provide a more attractive yield compared to U.S. Treasury obligations. While exposed to standard bond market risks, the fund also carries prepayment risk; significant mortgage refinancing activity can cause its yield to decline. It could be an appropriate consideration for individuals aiming for regular monthly income over a medium-term horizon, particularly as part of the fixed-income component of their overall investment strategy. A crucial point to remember is that the U.S. government's guarantee extends only to the underlying GNMA securities themselves and does not safeguard the fund's share price from market fluctuations.

What is the expense ratio of VFIJX?

Vanguard GNMA Fund Admiral Shares (VFIJX) charges an expense ratio of 0.11%. This is the annual fee deducted from fund assets to cover management and operations.

What is VFIJX's dividend yield?

VFIJX's trailing-twelve-month yield is 3.91%, calculated from the sum of dividends over the past year divided by the current price.

What is the duration of VFIJX?

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

What is the credit quality of VFIJX?

VFIJX'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 VFIJX?

Yield to maturity (YTM) is the total return you'd earn from VFIJX if every bond in the portfolio is held to maturity at the current price. VFIJX'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.