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If investors are looking at the Muni - Bonds fund category, Colorado Bond Shares Tax-Exempt A (HICOX - Free Report) could be a potential option. HICOX has a Zacks Mutual Fund Rank of 1 (Strong Buy), which is based on nine forecasting factors like size, cost, and past performance.
Objective
HICOX is one of many Muni - Bonds funds to choose from. Muni - Bonds funds invest in debt securities issued by states and local municipalities, which are typically used to pay for infrastructure construction, schools, and other government functions. These securities can be backed by taxes (revenue bonds), but others are known as " general obligation " and are not necessarily backed by a defined source. These bonds are especially attractive because of their inherent tax benefits.
History of Fund/Manager
HICOX is a part of the Freedom Funds family of funds, a company based out of Denver, CO. Since Colorado Bond Shares Tax-Exempt A made its debut in June of 1987, HICOX has garnered more than $1.39 billion in assets. The fund's current manager, Fred R. Kelly Jr.Has been in charge of the fund since November of 1990.
Performance
Investors naturally seek funds with strong performance. This fund has delivered a 5-year annualized total return of 4.38%, and is in the top third among its category peers. If you're interested in shorter time frames, do not dismiss looking at the fund's 3-year annualized total return of 4.46%, 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. HICOX's standard deviation over the past three years is 3.55% compared to the category average of 3.1%. Looking at the past 5 years, the fund's standard deviation is 2.95% compared to the category average of 3.14%. This makes the fund less volatile than its peers over the past half-decade.
HICOX carries a beta of 0.43, meaning that the fund is less volatile than a broad market index of fixed income securities. With this in mind, it has a positive alpha of 1.6, which measures performance on a risk-adjusted basis.
However, it is worth noting that 94 % of the bonds in this fund are not ranked, so take the average quality level with a bit of caution.
Expenses
For investors, taking a closer look at cost-related metrics is key, since costs are increasingly important for mutual fund investing. Competition is heating up in this space, and a lower cost product will likely outperform its otherwise identical counterpart, all things being equal. In terms of fees, HICOX is a load fund. It has an expense ratio of 0.56% compared to the category average of 0.82%. From a cost perspective, HICOX is actually cheaper than its peers.
This fund requires a minimum initial investment of $500, while there is no minimum for each subsequent investment.
Bottom Line
Overall, Colorado Bond Shares Tax-Exempt A ( HICOX ) has a high Zacks Mutual Fund rank, and in conjunction with its comparatively strong performance, average downside risk, and lower fees, Colorado Bond Shares Tax-Exempt A ( HICOX ) looks like a good potential choice for investors right now.
Want even more information about HICOX? Then go over to Zacks.com and check out our mutual fund comparison tool, and all of the other great features that we have to help you with your mutual fund analysis for additional information. Zacks provides a full suite of tools to help you analyze your portfolio - both funds and stocks - in the most efficient way possible.
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Is HICOX a Strong Bond Fund Right Now?
If investors are looking at the Muni - Bonds fund category, Colorado Bond Shares Tax-Exempt A (HICOX - Free Report) could be a potential option. HICOX has a Zacks Mutual Fund Rank of 1 (Strong Buy), which is based on nine forecasting factors like size, cost, and past performance.
Objective
HICOX is one of many Muni - Bonds funds to choose from. Muni - Bonds funds invest in debt securities issued by states and local municipalities, which are typically used to pay for infrastructure construction, schools, and other government functions. These securities can be backed by taxes (revenue bonds), but others are known as " general obligation " and are not necessarily backed by a defined source. These bonds are especially attractive because of their inherent tax benefits.
History of Fund/Manager
HICOX is a part of the Freedom Funds family of funds, a company based out of Denver, CO. Since Colorado Bond Shares Tax-Exempt A made its debut in June of 1987, HICOX has garnered more than $1.39 billion in assets. The fund's current manager, Fred R. Kelly Jr.Has been in charge of the fund since November of 1990.
Performance
Investors naturally seek funds with strong performance. This fund has delivered a 5-year annualized total return of 4.38%, and is in the top third among its category peers. If you're interested in shorter time frames, do not dismiss looking at the fund's 3-year annualized total return of 4.46%, 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. HICOX's standard deviation over the past three years is 3.55% compared to the category average of 3.1%. Looking at the past 5 years, the fund's standard deviation is 2.95% compared to the category average of 3.14%. This makes the fund less volatile than its peers over the past half-decade.
HICOX carries a beta of 0.43, meaning that the fund is less volatile than a broad market index of fixed income securities. With this in mind, it has a positive alpha of 1.6, which measures performance on a risk-adjusted basis.
However, it is worth noting that 94 % of the bonds in this fund are not ranked, so take the average quality level with a bit of caution.
Expenses
For investors, taking a closer look at cost-related metrics is key, since costs are increasingly important for mutual fund investing. Competition is heating up in this space, and a lower cost product will likely outperform its otherwise identical counterpart, all things being equal. In terms of fees, HICOX is a load fund. It has an expense ratio of 0.56% compared to the category average of 0.82%. From a cost perspective, HICOX is actually cheaper than its peers.
This fund requires a minimum initial investment of $500, while there is no minimum for each subsequent investment.
Bottom Line
Overall, Colorado Bond Shares Tax-Exempt A ( HICOX ) has a high Zacks Mutual Fund rank, and in conjunction with its comparatively strong performance, average downside risk, and lower fees, Colorado Bond Shares Tax-Exempt A ( HICOX ) looks like a good potential choice for investors right now.
Want even more information about HICOX? Then go over to Zacks.com and check out our mutual fund comparison tool, and all of the other great features that we have to help you with your mutual fund analysis for additional information. Zacks provides a full suite of tools to help you analyze your portfolio - both funds and stocks - in the most efficient way possible.