Now select an actively managed mutual fund of your choice (www.morningstar.com)

Question

Now select an actively managed mutual fund of your choice (www.morningstar.com) or/and go on the website of the company that manages the fund, or any other source.

-Precisely describe the fund’s strategy and performance (Check the fund’s summary prospectus)

-Which sectors or markets is the fund mostly invested in? (show % invested)

-What fees does the fund charge? (indicate numbers)

-What is the fund’s return rate compared to either a benchmark or other funds with similar strategies? Year-to-date and over the last 5 years.

-In your opinion, is the manager of the mutual fund successful in achieving his goal? Why or why not?

Explanation / Answer

Vanguard Short Term Treasury Fund

The Vanguard Short-Term Treasury Fund falls within Morningstar’s short government category. The fund invests at least 90 percent of its assets in Treasury bills issued by the U.S. government, with durations generally ranging between one and three years.

According to Vanguard, short-term bond funds will typically offer higher yields than money market funds, but there is the risk of price fluctuation based on the movement of interest rates.

Investment Strategy

The fund invests directly in short-term Treasury bills issued by the U.S. government.

Fund Performance

The fund has returned -0.42 percent over the past year, 0.34 percent over the past three years, 0.48 percent over the past five years and 1.39 percent over the past decade.

Fund Holdings

The majority of the fund's holdings are in U.S. Treasury bills.

Asset Allocation

Cash

Bonds

Others

Foreign Bonds

Foreign Stocks

Convertible

Preferred

Actual Fees %

Fees paid for management and distribution over the fund's prior fiscal year. Actual fees represent a close approximation of the true cost to shareholders.

Net Expense Ratio 0.20

Management 0.17

- The fund has returned -0.42 percent over the past year, 0.34 percent over the past three years, 0.48 percent over the past five years and 1.39 percent over the past decade.

The fund launched in October 1991. Parent company Vanguard is the largest mutual fund provider in the U.S. and offers a wide array of mutual funds and ETFs. Vanguard’s trademark is low-cost index products but the firm also offers many actively managed funds. The company's low-cost approach has led to significant inflows of assets into its funds in recent years.

Management

Gemma Wright-Casparius has managed the fund since 2015. The veteran Vanguard manager manages several other funds for the company.

The fund launched in October 1991. Parent company Vanguard is the largest mutual fund provider in the U.S. and offers a wide array of mutual funds and ETFs. Vanguard’s trademark is low-cost index products but the firm also offers many actively managed funds. The company's low-cost approach has led to significant inflows of assets into its funds in recent years.

Type % Long % Net

Cash

2.6 2.6

Bonds

97.0 —

Others

— —

Foreign Bonds

0.3 97.3

Foreign Stocks

— —

Convertible

— —

Preferred

— —

Related Questions

Navigate

• Browse (All)
• Browse N
• Subjects

---

---

Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.