Mutual Fund Bond fund seekers should consider taking a look at Delaware National High Yield Municipals A (
CXHYX Quick Quote CXHYX - Free Report) . CXHYX possesses 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
CXHYX finds itself in the Delaware Investments family, based out of Philadelphia, PA. The Delaware National High Yield Municipals A made its debut in September of 1986 and CXHYX has managed to accumulate roughly $247.03 million in assets, as of the most recently available information. A team of investment professionals is the fund's current manager.
Obviously, what investors are looking for in these funds is strong performance relative to their peers. This fund carries a 5-year annualized total return of 3.77%, 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 2.32%, 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 12.76%, the standard deviation of CXHYX over the past three years is 9.65%. Over the past 5 years, the standard deviation of the fund is 7.64% compared to the category average of 11.01%. This makes the fund less volatile than its peers over the past half-decade.
With a beta of 1.05, this fund is more volatile than a broad market index of fixed income securities. Taking this into account, CXHYX has a positive alpha of 1.69, which measures performance on a risk-adjusted basis.
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, CXHYX has 12.09% in medium quality bonds, with ratings of 'A' to 'BBB'. The fund has an average quality of BBB, and focuses on medium quality securities.
However, it is worth noting that 58 % of the bonds in this fund are not ranked, so take the average quality level with a bit of caution.
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, CXHYX is a load fund. It has an expense ratio of 0.85% compared to the category average of 0.79%. So, CXHYX is actually more expensive than its peers from a cost perspective.
Investors need to be aware that with this product, the minimum initial investment is $1,000; each subsequent investment needs to be at least $100.
Overall, Delaware National High Yield Municipals A ( CXHYX ) has a high Zacks Mutual Fund rank, and in conjunction with its comparatively strong performance, average downside risk, and higher fees, this fund looks like a good potential choice for investors right now.
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