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There are plenty of choices in the Investment Grade Bond - Short category, but where should you start your research? Well, one fund that might be worth investigating is Thompson Bond Fund (THOPX - Free Report) . THOPX bears a Zacks Mutual Fund Rank of 2 (Buy), which is based on nine forecasting factors like size, cost, and past performance.
Objective
THOPX is classified in the Investment Grade Bond - Short segment by Zacks, an area full of investment potential. By investing in bonds that mature in less than two years, Investment Grade Bond - Short funds are focused on the short end of the curve. Fixed income instruments at this maturity level tend to have low duration risk, but they also pay out small yields compared to their longer-dated peers. Furthermore, these funds'focus on investment grade make them safer, but yields will be lower than in the junk bond category.
History of Fund/Manager
Thompson is based in Madison, WI, and is the manager of THOPX. Since Thompson Bond Fund made its debut in February of 1992, THOPX has garnered more than $3.92 billion in assets. The fund's current manager, Jason L. Stephens, has been in charge of the fund since February of 2009.
Performance
Investors naturally seek funds with strong performance. This fund has delivered a 5-year annualized total return of 3.82%, and is 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 3.69%, 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 0.85%, the standard deviation of THOPX over the past three years is 0.95%. The fund's standard deviation over the past 5 years is 3.04% compared to the category average of 1.12%. This makes the fund more volatile than its peers over the past half-decade.
This fund has a beta of 0.09, meaning that it is less volatile than a broad market index of fixed income securities. Taking this into account, THOPX has a positive alpha of 2.43, 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, THOPX has 27.59% in high quality bonds rated at least 'AA' or higher, while 66.99% are of medium quality, with ratings of 'A' to 'BBB'. The fund has an average quality of A, and focuses on high quality securities.
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, THOPX is a no load fund. It has an expense ratio of 0.71% compared to the category average of 0.77%. THOPX 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 $250; each subsequent investment needs to be at least $50.
Bottom Line
Overall, Thompson Bond Fund ( THOPX ) 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.
This could just be the start of your research on THOPXin the Investment Grade Bond - Short 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. For analysis of the rest of your portfolio, make sure to visit Zacks.com for our full suite of tools which will help you investigate all of your stocks and funds in one place.
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Is THOPX a Strong Bond Fund Right Now?
There are plenty of choices in the Investment Grade Bond - Short category, but where should you start your research? Well, one fund that might be worth investigating is Thompson Bond Fund (THOPX - Free Report) . THOPX bears a Zacks Mutual Fund Rank of 2 (Buy), which is based on nine forecasting factors like size, cost, and past performance.
Objective
THOPX is classified in the Investment Grade Bond - Short segment by Zacks, an area full of investment potential. By investing in bonds that mature in less than two years, Investment Grade Bond - Short funds are focused on the short end of the curve. Fixed income instruments at this maturity level tend to have low duration risk, but they also pay out small yields compared to their longer-dated peers. Furthermore, these funds'focus on investment grade make them safer, but yields will be lower than in the junk bond category.
History of Fund/Manager
Thompson is based in Madison, WI, and is the manager of THOPX. Since Thompson Bond Fund made its debut in February of 1992, THOPX has garnered more than $3.92 billion in assets. The fund's current manager, Jason L. Stephens, has been in charge of the fund since February of 2009.
Performance
Investors naturally seek funds with strong performance. This fund has delivered a 5-year annualized total return of 3.82%, and is 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 3.69%, 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 0.85%, the standard deviation of THOPX over the past three years is 0.95%. The fund's standard deviation over the past 5 years is 3.04% compared to the category average of 1.12%. This makes the fund more volatile than its peers over the past half-decade.
This fund has a beta of 0.09, meaning that it is less volatile than a broad market index of fixed income securities. Taking this into account, THOPX has a positive alpha of 2.43, 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, THOPX has 27.59% in high quality bonds rated at least 'AA' or higher, while 66.99% are of medium quality, with ratings of 'A' to 'BBB'. The fund has an average quality of A, and focuses on high quality securities.
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, THOPX is a no load fund. It has an expense ratio of 0.71% compared to the category average of 0.77%. THOPX 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 $250; each subsequent investment needs to be at least $50.
Bottom Line
Overall, Thompson Bond Fund ( THOPX ) 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.
This could just be the start of your research on THOPXin the Investment Grade Bond - Short 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. For analysis of the rest of your portfolio, make sure to visit Zacks.com for our full suite of tools which will help you investigate all of your stocks and funds in one place.