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Is BHYAX a Strong Bond Fund Right Now?

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If you've been stuck searching for Mutual Fund Bond funds, consider BlackRock High Yield Bond A (BHYAX - Free Report) as a possibility. BHYAX has a Zacks Mutual Fund Rank of 1 (Strong Buy), which is based on various forecasting factors like size, cost, and past performance.

History of Fund/Manager

BHYAX is a part of the BlackRock family of funds, a company based out of New York, NY. BlackRock High Yield Bond A debuted in November of 1998. Since then, BHYAX has accumulated assets of about $1.09 billion, according to the most recently available information. A team of investment professionals is the fund's current manager.

Performance

Investors naturally seek funds with strong performance. BHYAX has a 5-year annualized total return of 2.9% 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 1.96%, which places it in the top third during this time-frame.

It is important to note that the product's returns may not reflect all its expenses. Any fees not reflected would lower the returns. Total returns do not reflect the fund's [%] sale charge. If sales charges were included, total returns would have been lower.

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. BHYAX's standard deviation over the past three years is 8.14% compared to the category average of 13.16%. The standard deviation of the fund over the past 5 years is 9.6% compared to the category average of 14.24%. This makes the fund less volatile than its peers over the past half-decade.

BHYAX carries a beta of 0.28, 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 2.56, which measures performance on a risk-adjusted basis.

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, BHYAX is a load fund. It has an expense ratio of 0.92% compared to the category average of 0.98%. Looking at the fund from a cost perspective, BHYAX is actually cheaper than its peers.

Investors need to be aware that with this product, the minimum initial investment is $1,000; each subsequent investment needs to be at least $50.

Fees charged by investment advisors have not been taken into considiration. Returns would be less if those were included.

Bottom Line

Overall, BlackRock High Yield Bond A ( BHYAX ) has a high Zacks Mutual Fund rank, and in conjunction with its comparatively strong performance, average downside risk, and lower fees, this fund looks like a good potential choice for investors right now.

For additional information on this product, or to compare it to other mutual funds in the Mutual Fund Bond, make sure to go to www.zacks.com/funds/mutual-funds 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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