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Is TRBUX a Strong Bond Fund Right Now?

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Having trouble finding a Mutual Fund Bond fund? T. Rowe Price Ultra Short-Term Bond (TRBUX - Free Report) is a potential starting point. TRBUX bears a Zacks Mutual Fund Rank of 1 (Strong Buy), which is based on nine forecasting factors like size, cost, and past performance.

History of Fund/Manager

T. Rowe Price is based in Baltimore, MD, and is the manager of TRBUX. Since T. Rowe Price Ultra Short-Term Bond made its debut in December of 2012, TRBUX has garnered more than $4.17 billion in assets. The fund's current manager, Alexander Obaza, has been in charge of the fund since March of 2020.


Of course, investors look for strong performance in funds. This fund carries a 5-year annualized total return of 2.13%, 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 2.28%, 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 8.38%, the standard deviation of TRBUX over the past three years is 1.87%. Over the past 5 years, the standard deviation of the fund is 1.45% compared to the category average of 6.93%. This makes the fund less volatile than its peers over the past half-decade.

This fund has a beta of 0.18, meaning that it is less volatile than a broad market index of fixed income securities. Taking this into account, TRBUX has a positive alpha of 0.77, which measures performance on a risk-adjusted basis.


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, TRBUX is a no load fund. It has an expense ratio of 0.35% compared to the category average of 0.72%. TRBUX 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 $2,500; each subsequent investment needs to be at least $100.

Bottom Line

Overall, T. Rowe Price Ultra Short-Term Bond ( TRBUX ) has a high Zacks Mutual Fund rank, and in conjunction with its comparatively strong performance, better downside risk, and lower fees, T. Rowe Price Ultra Short-Term Bond ( TRBUX ) looks like a good potential choice for investors right now.

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