usenet@ucbvax.BERKELEY.EDU (USENET News Administration) (03/05/86)
I have just received by Vanguard Fixed Income Annual Report.
This fund has four different types of bonds that you can invest in.
Each type of bond has its own separate sub-fund.
This fund has no-load, coming or going. Its only charges are for expenses
and management. The charges are figured separately for each sub-fund. The
following charges are the total of all charges against the investor:
GNMA ------------- 0.50%
Investment Grade - 0.55%
High Yield ------- 0.60%
Short Term Bond -- 0.49%
Why the differene in expenses is detailed in the report. The point in
reporting these charges is to show how low the total administrative cost
of a fund can get. Compare this to a 8% front end load + annual administrative
costs of 1.5 to 2.5%.
From: mazlack@ernie.berkeley.edu.BERKELEY.EDU (Lawrence J. &)
Path: ernie.berkeley.edu!mazlack
The report also does a good job of explaining the basics of bond investing.
You should get it if you don't understand much about this area (800-662-SHIP).
Likewise, it does a good job of explaining Vanguard's strategy. Discovering
and agreeing with a fund's strategy should always be done before you send
them your nickels.
...Larry Mazlack
mazlack@ernie.berkeley.edu