Vanguard GNMA Fund Investor Shares
VFIIX
NASDAQ- -
USD
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- -
Capital Structure
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in mil. unless spec.Working Capital
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in mil. unless spec.Growth Rates
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in mil. unless spec.Quarterly Revenue
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in mil. unless spec.Quarterly Earnings Per Share
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in mil. unless spec.- Sector
- Financial Services
- Industry
- Asset Management
- Address
- 100 Vanguard Boulevard Malvern PA United States of America 19355
- IPO Date
- Jun 27, 1980
- CIK
- 0000106444
- Website
- investor.vanguard.com
- Similar Companies
- Business
- Vanguard GNMA Fund (VFIIX) is an open-end bond mutual fund that seeks a moderate level of current income by investing at least 80% of its assets in Government National Mortgage Association (GNMA or Ginnie Mae) pass-through certificates, which are fixed-income securities backed by the full faith and credit of the U.S. government and representing part ownership in pools of 15- and 30-year fixed-rate home mortgages; the fund may also allocate remaining assets to U.S. Treasury securities, other U.S. government agency securities, or repurchase agreements collateralized by such securities. Its dollar-weighted average maturity normally falls within an intermediate-term range of 3 to 10 years, influenced by homeowner prepayment patterns, with a portfolio primarily comprising agency mortgage-backed securities (approximately 100%), cash equivalents (around 3-6%), and high credit quality holdings rated U.S. Government (over 96%). The fund, domiciled in the United States and managed by The Vanguard Group, Inc., targets individual and institutional investors seeking exposure to government-guaranteed mortgage-backed securities within the intermediate government bond category, with operations focused on U.S. fixed-income markets. Launched on June 27, 1980, and headquartered in Valley Forge, Pennsylvania, alongside its parent company The Vanguard Group, Inc., the Investor Shares class (ticker: VFIIX) features a low expense ratio of 0.21%, high portfolio turnover of approximately 388%, and total net assets of roughly $11.11 billion as of recent reports. It benchmarks performance against the Bloomberg U.S. GNMA Index and has delivered competitive returns, including a 6.09% one-year total return and 1.24% ten-year annualized return as of June 30, 2025, amid fluctuating interest rates and prepayment dynamics. In recent years, the fund has maintained its core strategy without major structural changes, such as acquisitions, partnerships, or name reorganizations, though it has demonstrated portfolio adjustments for relative value opportunities, including tactical increases in cash and mortgage to-be-announced (TBA) securities—for instance, elevating cash equivalents to 24.5% in December 2021 from 14.7% in September 2021 when TBAs offered attractive liquidity and pricing. Security selection in 30-year GNMA securities and out-of-benchmark agency collateralized mortgage obligations contributed to outperformance, with a 6.4% year-to-date return through September 2025 surpassing the peer median of 6.3%. Amid broader Vanguard initiatives, such as the launch of new active equity ETFs and allocation shifts in unrelated funds like Vanguard Windsor II in December 2025, VFIIX continues to emphasize its stable, government-backed mandate with no reported strategic expansions or funding events specific to the fund.