VFIJX

About VFIJX

Vanguard GNMA Fund Admiral Shares is a mutual fund specializing in government mortgage-backed securities. Its primary objective is to provide broad exposure to the U.S. mortgage market by investing at least 80% of its assets in Government National Mortgage Association (GNMA) pass-through certificates, which are fixed income securities backed by the full faith and credit of the U.S. government. This high level of government backing results in strong credit quality, and the fund’s credit holdings are predominantly rated AAA. While its core portfolio consists of GNMA securities, it retains the flexibility to invest up to 20% in other U.S. Treasury or agency securities, depending on market conditions. As an intermediate government bond fund, its holdings typically have a dollar-weighted average maturity within an intermediate-term range (3 to 10 years), balancing interest rate sensitivity and potential yield. The fund is managed by experienced professionals at Vanguard and Wellington Management, employing disciplined strategies for evaluating prepayment and interest-rate risk. With a relatively low expense ratio and monthly dividend payouts, it serves investors seeking income and government-backed mortgage exposure in a diversified bond portfolio.