Ginnie Mae or GNMA Funds: Karin,

» RandeS - Karin,

The Schwab rep probably pushed the Lexington fund becuase they participate in One Source, which means Schwab gets an ongoing revenue stream for assets they gather into the fund. Still, you could have done a lot worse. Lexington is ranked in the 1st percentile by Morningstar for its peer group for the past 12 months and 3 year periods (16th and 5th percentile respectively for the Vanguard fund). Also, the fund is in the top 2nd percentile for the 5 year period, 4th percentile for the 10 year period and the 8th percentile for the 15 year period (Vanguard is in the 3rd, 3rd, and 1st respectively for these periods -- but the current manager has only been there 5 years while Lexington's has been there 18 years). The BIG problem is one of fees. Lexington charges 1.01% in annual expenses while Vanguard charges .30%. Still, the higher fees don't seem to have hurt the performance so far, especially since the portfolio's duration was recently at 3 years vs. the 3.8 years for Vanguard (less volatile). Aside from the higher expenses, looks like a winner.

-- posted by RandeS