Best Vanguard bond funds for 2012
| January 29, 2012 | Posted by John Border under Investments, Investments in 2012 |
If you have an investment account with Vanguard, you can use it to invest in some bonds for 2012. Vanguard has a variety of bonds in which you can invest in. In fact, several of them made the 2012 list of Money magazine’s ‘Money 70’ list of the best investment buys for 2012. Vanguard bond funds can be invested in via ETFs or index funds. If you are ready to invest in bonds, here are some of the best Vanguard funds for 2012.
Vanguard Inflation-Protected Securities Fund
The Vanguard Inflation-Protected Securities Fund invests in bonds that are adjusted quarterly for inflation and backed by the federal government. This inflation protected bond has an expense ratio of 0.22 percent. You can find it trading under the symbol VIPSX. The minimum investment for the Vanguard Inflation-Protected Securities Fund is $3,000. The fund has 34 bonds with an average maturity of 9.5 years. The average annual rate of return since inception is 7.57 percent.
Vanguard Intermediate-Term Tax-Exempt Fund
The Vanguard Intermediate-Term Tax-Exempt Fund invests in municipal bonds that are high quality and offer federal tax exempt income. This municipal bond has an expense ratio of 0.20 percent. You can find it trading under the symbol VWITX. The minimum investment for the Vanguard Intermediate-Term Tax-Exempt Fund is $3,000. The fund has 3114 bonds with an average maturity of 5.7 years. The average annual rate of return since inception is 5.81 percent.
Vanguard Short-Term Bond Index Fund
The Vanguard Short-Term Bond Index Fund invests 70 percent in US government bonds and 30 percent in corporate bonds. This short term bond has an expense ratio of 0.22 percent. You can find it trading under the symbol VBISX. The minimum investment for the Vanguard Short-Term Bond Index Fund is $3,000. The fund has 1347 bonds with an average maturity of 2.8 years. The average annual rate of return since inception is 5.11 percent.
Vanguard Short-Term Bond ETF
The Vanguard Short-Term Bond ETF seeks to replicate the Barclays Capital U.S. 1–5 Year Government/Credit Float Adjusted Index market performance. Investments are in high quality corporate bonds, US government bonds, and international dollar-denominated bonds that are investment grade. This short term bond has an expense ratio of 0.11 percent. You can find it trading under the symbol BSV. The minimum investment for the Vanguard Short-Term Bond ETF is $3,000. The fund has 1347 bonds with an average maturity of 2.8 years. The average annual rate of return since inception is 4.78 percent.
Vanguard Total Bond Market Index Fund
The Vanguard Total Bond Market Index Fund invests 70 percent in US government bonds and 30 percent in corporate bonds. This short term bond has an expense ratio of 0.22 percent. You can find it trading under the symbol VBISX. The minimum investment for the Vanguard Total Bond Market Index Fund is $3,000. The fund has 5128 bonds with an average maturity of 7.3 years. The average annual rate of return since inception is 6.84 percent.
