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If you've been stuck searching for High Yield - Bonds funds, consider Fidelity High Income (SPHIX - Free Report) as a possibility. SPHIX holds a Zacks Mutual Fund Rank of 2 (Buy), which is based on nine forecasting factors like size, cost, and past performance.
Objective
SPHIX is part of the High Yield - Bonds section, which is a segment that boasts many possible options. Often referred to as " junk " bonds, High Yield - Bonds funds sit below investment grade, meaning they are at a high default risk compared to their investment grade peers. However, one advantage to junk bonds is that they generally pay out higher yields while posing similar interest rate risks to their investment grade counterparts.
History of Fund/Manager
Fidelity is based in Boston, MA, and is the manager of SPHIX. The Fidelity High Income made its debut in August of 1990 and SPHIX has managed to accumulate roughly $4.16 billion in assets, as of the most recently available information. Michael Weaver is the fund's current manager and has held that role since October of 2018.
Performance
Of course, investors look for strong performance in funds. This fund in particular has delivered a 5-year annualized total return of 6.72%, and it sits in the middle 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 5.55%, which places it in the bottom 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. The standard deviation of SPHIX over the past three years is 9.06% compared to the category average of 13.09%. The standard deviation of the fund over the past 5 years is 7.31% compared to the category average of 10.79%. This makes the fund less volatile than its peers over the past half-decade.
With a beta of 0.55, this fund is less volatile than a broad market index of fixed income securities. Taking this into account, SPHIX has a positive alpha of 4.84, which measures performance on a risk-adjusted basis.
Ratings
Investors should also consider a bond's rating, which is a grade ( 'AAA' to 'D' ) given to a bond that indicates its credit quality. With this letter scale in mind, SPHIX 's junk bond component-bonds rated 'BB' or below-is at 88.27%. This means that the fund has an average quality of BBB, and focuses on medium quality securities.
Expenses
As competition heats up in the mutual fund market, costs become increasingly important. Compared to its otherwise identical counterpart, a low-cost product will be an outperformer, all other things being equal. Thus, taking a closer look at cost-related metrics is vital for investors. In terms of fees, SPHIX is a no load fund. It has an expense ratio of 0.69% compared to the category average of 1%. SPHIX is actually cheaper than its peers when you consider factors like cost.
Investors need to be aware that with this product, the minimum initial investment is $0; each subsequent investment has no minimum amount.
Bottom Line
Overall, Fidelity High Income ( SPHIX ) has a high Zacks Mutual Fund rank, and in conjunction with its comparatively similar performance, average downside risk, and lower fees, Fidelity High Income ( SPHIX ) looks like a good potential choice for investors right now.
Don't stop here for your research on High Yield - Bonds funds. We also have plenty more on our site in order to help you find the best possible fund for your portfolio. Make sure to check out www.zacks.com/funds/mutual-funds for more information about the world of funds, and feel free to compare SPHIX to its peers as well for additional information. If you are more of a stock investor, make sure to also check out our Zacks Rank, and our full suite of tools we have available for novice and professional investors alike.
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Is SPHIX a Strong Bond Fund Right Now?
If you've been stuck searching for High Yield - Bonds funds, consider Fidelity High Income (SPHIX - Free Report) as a possibility. SPHIX holds a Zacks Mutual Fund Rank of 2 (Buy), which is based on nine forecasting factors like size, cost, and past performance.
Objective
SPHIX is part of the High Yield - Bonds section, which is a segment that boasts many possible options. Often referred to as " junk " bonds, High Yield - Bonds funds sit below investment grade, meaning they are at a high default risk compared to their investment grade peers. However, one advantage to junk bonds is that they generally pay out higher yields while posing similar interest rate risks to their investment grade counterparts.
History of Fund/Manager
Fidelity is based in Boston, MA, and is the manager of SPHIX. The Fidelity High Income made its debut in August of 1990 and SPHIX has managed to accumulate roughly $4.16 billion in assets, as of the most recently available information. Michael Weaver is the fund's current manager and has held that role since October of 2018.
Performance
Of course, investors look for strong performance in funds. This fund in particular has delivered a 5-year annualized total return of 6.72%, and it sits in the middle 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 5.55%, which places it in the bottom 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. The standard deviation of SPHIX over the past three years is 9.06% compared to the category average of 13.09%. The standard deviation of the fund over the past 5 years is 7.31% compared to the category average of 10.79%. This makes the fund less volatile than its peers over the past half-decade.
With a beta of 0.55, this fund is less volatile than a broad market index of fixed income securities. Taking this into account, SPHIX has a positive alpha of 4.84, which measures performance on a risk-adjusted basis.
Ratings
Investors should also consider a bond's rating, which is a grade ( 'AAA' to 'D' ) given to a bond that indicates its credit quality. With this letter scale in mind, SPHIX 's junk bond component-bonds rated 'BB' or below-is at 88.27%. This means that the fund has an average quality of BBB, and focuses on medium quality securities.
Expenses
As competition heats up in the mutual fund market, costs become increasingly important. Compared to its otherwise identical counterpart, a low-cost product will be an outperformer, all other things being equal. Thus, taking a closer look at cost-related metrics is vital for investors. In terms of fees, SPHIX is a no load fund. It has an expense ratio of 0.69% compared to the category average of 1%. SPHIX is actually cheaper than its peers when you consider factors like cost.
Investors need to be aware that with this product, the minimum initial investment is $0; each subsequent investment has no minimum amount.
Bottom Line
Overall, Fidelity High Income ( SPHIX ) has a high Zacks Mutual Fund rank, and in conjunction with its comparatively similar performance, average downside risk, and lower fees, Fidelity High Income ( SPHIX ) looks like a good potential choice for investors right now.
Don't stop here for your research on High Yield - Bonds funds. We also have plenty more on our site in order to help you find the best possible fund for your portfolio. Make sure to check out www.zacks.com/funds/mutual-funds for more information about the world of funds, and feel free to compare SPHIX to its peers as well for additional information. If you are more of a stock investor, make sure to also check out our Zacks Rank, and our full suite of tools we have available for novice and professional investors alike.