If you have been looking for Muni - Bonds funds, a place to start could be Vanguard Intermediate-Term Tax-Exempt Investor (VWITX). VWITX holds a Zacks Mutual Fund Rank of 1 (Strong Buy), which is based on various forecasting factors like size, cost, and past performance.

Objective

We classify VWITX in the Muni - Bonds category, an area rife with potential choices. Muni - Bonds funds focus their investments on debt securities issued by state and local governments. These are typically used to pay for the construction of infrastructure, the operation of public schools, and other municipal functions. These securities can come in the form of revenue bonds, which are backed by taxes, as well as " general obligation " bonds that are not backed by a defined source. Investors are usually interested that come with most municipal bonds, which can be especially important for those in higher tax brackets.

History of Fund/Manager

Vanguard Group is based in Malvern, PA, and is the manager of VWITX. Since Vanguard Intermediate-Term Tax-Exempt Investor made its debut in September of 1977, VWITX has garnered more than $2.30 billion in assets. The fund is currently managed by James D'Arcy who has been in charge of the fund since June of 2013.

Performance

Investors naturally seek funds with strong performance. This fund carries a 5-year annualized total return of 1.45%, and is in the top third among its category peers. But if you are looking for a shorter time frame, it is also worth looking at its 3-year annualized total return of -0.61%, which places it in the top third during this time-frame.

It is important to note that the product's returns may not reflect all its expenses. Any fees not reflected would lower the returns. Total returns do not reflect the fund's [%] sale charge. If sales charges were included, total returns would have been lower.

When looking at a fund's performance, it is also important to note the standard deviation of the returns. The lower the standard deviation, the less volatility the fund experiences. VWITX's standard deviation over the past three years is 6.13% compared to the category average of 10.22%. The standard deviation of the fund over the past 5 years is 5.48% compared to the category average of 10.44%. This makes the fund less volatile than its peers over the past half-decade.

This fund has a beta of 0.72, meaning that it is less volatile than a broad market index of fixed income securities. Taking this into account, VWITX has a positive alpha of 0.05, which measures performance on a risk-adjusted basis.