Bob told the caller he likes the fund from Vanguard due to the lower cost basis.
Both funds are actively managed. Fidelity gets away with charging more because they currently offer better performance even with the higher fees. If you go to their web sites, it looks like the two funds have quite different average maturities and durations which probably accounts for the 7.64% return for Fidelity compared to 6.96% return at Vanguard for the past year.
GNMA means Government National Mortgage Association
From Vanguard GNMA Fund Investor Shares (VFIIX Charts)
- Seeks to provide a moderate level of current income.
- Invests primarily in Government National Mortgage Association (”Ginnie Mae”) securities. These securities are backed by the U.S. government to provide timely payment of principal and interest.
- Follows no specific maturity guidelines but typically maintains a dollar-weighted average maturity of 3 to 10 years.
Average annual returns—updated monthly as of 03/31/2009
VFIIX Characteristics as of 02/28/2009:
Fidelity Ginnie Mae Fund (FGMNX)
Expense Ratio = 0.45%
Average Annual Total Returns (%) as of 03/31/2009
|Fidelity GNMA ||FGMNX|| || |
|Weighted Average Maturity as of 03/31/2009||4|
|Option Adjusted Duration as of 03/31/2009||1|
Note: Performance data shown represents past performance and is no guarantee of future results. Investment return and principal value will fluctuate, so you may have a gain or loss when shares are sold. Current performance may be higher or lower than that quoted.
Vangaurd Equity Index Funds::
Since 12/31/98 "Kirk's Newsletter Explore Portfolio" is UP 106% (over a double!) vs. the S&P500 DOWN 11.3% vs. NASDAQ down 16.3% vs. Warren Buffett's Berkshire Hathaway (BRKA) up 27.7% (All through
(Your 1 year, 12 issue subscription will start with next month's issue.)