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If you've been stuck searching for Muni - Bonds funds, consider Goldman Sachs High Yield Municipals A (GHYAX - Free Report) as a possibility. GHYAX carries a Zacks Mutual Fund Rank of 1 (Strong Buy), which is based on nine forecasting factors like size, cost, and past performance.
Objective
We classify GHYAX 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
Goldman Sachs is responsible for GHYAX, and the company is based out of New York, NY. Goldman Sachs High Yield Municipals A debuted in April of 2000. Since then, GHYAX has accumulated assets of about $419.78 million, according to the most recently available information. The fund's current manager, Scott Diamond, has been in charge of the fund since December of 2002.
Performance
Investors naturally seek funds with strong performance. This fund carries a 5-year annualized total return of 5.62%, and it sits 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 5.05%, which places it in the top third during this time-frame.
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. Compared to the category average of 10.96%, the standard deviation of GHYAX over the past three years is 7.49%. Looking at the past 5 years, the fund's standard deviation is 6.41% compared to the category average of 10.02%. This makes the fund less volatile than its peers over the past half-decade.
This fund has a beta of 0.93, meaning that it is less volatile than a broad market index of fixed income securities. Taking this into account, GHYAX has a positive alpha of 0.5, which measures performance on a risk-adjusted basis.
Ratings
However, it is worth noting that 25 % of the bonds in this fund are not ranked, so take the average quality level with a bit of caution.
Expenses
Costs are increasingly important for mutual fund investing, and particularly as competition heats up in this market. And all things being equal, a lower cost product will outperform its otherwise identical counterpart, so taking a closer look at these metrics is key for investors. In terms of fees, GHYAX is a load fund. It has an expense ratio of 0.85% compared to the category average of 0.82%. Looking at the fund from a cost perspective, GHYAX is actually more expensive than its peers.
While the minimum initial investment for the product is $1,000, investors should also note that each subsequent investment needs to be at least $50.
Bottom Line
Overall, Goldman Sachs High Yield Municipals A ( GHYAX ) has a high Zacks Mutual Fund rank, and in conjunction with its comparatively strong performance, average downside risk, and higher fees, Goldman Sachs High Yield Municipals A ( GHYAX ) looks like a good potential choice for investors right now.
This could just be the start of your research on GHYAXin the Muni - Bonds category. Consider going to www.zacks.com/funds/mutual-funds for additional information about this fund, and all the others that we rank as well for additional information. And don't forget, Zacks has all of your needs covered on the equity side too! Make sure to check out Zacks.com for more information on our screening capabilities, Rank, and all our articles as well.
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Is GHYAX a Strong Bond Fund Right Now?
If you've been stuck searching for Muni - Bonds funds, consider Goldman Sachs High Yield Municipals A (GHYAX - Free Report) as a possibility. GHYAX carries a Zacks Mutual Fund Rank of 1 (Strong Buy), which is based on nine forecasting factors like size, cost, and past performance.
Objective
We classify GHYAX 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
Goldman Sachs is responsible for GHYAX, and the company is based out of New York, NY. Goldman Sachs High Yield Municipals A debuted in April of 2000. Since then, GHYAX has accumulated assets of about $419.78 million, according to the most recently available information. The fund's current manager, Scott Diamond, has been in charge of the fund since December of 2002.
Performance
Investors naturally seek funds with strong performance. This fund carries a 5-year annualized total return of 5.62%, and it sits 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 5.05%, which places it in the top third during this time-frame.
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. Compared to the category average of 10.96%, the standard deviation of GHYAX over the past three years is 7.49%. Looking at the past 5 years, the fund's standard deviation is 6.41% compared to the category average of 10.02%. This makes the fund less volatile than its peers over the past half-decade.
This fund has a beta of 0.93, meaning that it is less volatile than a broad market index of fixed income securities. Taking this into account, GHYAX has a positive alpha of 0.5, which measures performance on a risk-adjusted basis.
Ratings
However, it is worth noting that 25 % of the bonds in this fund are not ranked, so take the average quality level with a bit of caution.
Expenses
Costs are increasingly important for mutual fund investing, and particularly as competition heats up in this market. And all things being equal, a lower cost product will outperform its otherwise identical counterpart, so taking a closer look at these metrics is key for investors. In terms of fees, GHYAX is a load fund. It has an expense ratio of 0.85% compared to the category average of 0.82%. Looking at the fund from a cost perspective, GHYAX is actually more expensive than its peers.
While the minimum initial investment for the product is $1,000, investors should also note that each subsequent investment needs to be at least $50.
Bottom Line
Overall, Goldman Sachs High Yield Municipals A ( GHYAX ) has a high Zacks Mutual Fund rank, and in conjunction with its comparatively strong performance, average downside risk, and higher fees, Goldman Sachs High Yield Municipals A ( GHYAX ) looks like a good potential choice for investors right now.
This could just be the start of your research on GHYAXin the Muni - Bonds category. Consider going to www.zacks.com/funds/mutual-funds for additional information about this fund, and all the others that we rank as well for additional information. And don't forget, Zacks has all of your needs covered on the equity side too! Make sure to check out Zacks.com for more information on our screening capabilities, Rank, and all our articles as well.