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On the lookout for a High Yield - Bonds fund? Starting with BlackRock High Yield Bond A (BHYAX - Free Report) is one possibility. BHYAX carries a Zacks Mutual Fund Rank of 1 (Strong Buy), which is based on various forecasting factors like size, cost, and past performance.
Objective
BHYAX 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
BlackRock is based in New York, NY, and is the manager of BHYAX. BlackRock High Yield Bond A debuted in November of 1998. Since then, BHYAX has accumulated assets of about $1.10 billion, according to the most recently available information. The fund is currently managed by Mitchell Garfin who has been in charge of the fund since December of 2009.
Performance
Of course, investors look for strong performance in funds. This fund in particular has delivered a 5-year annualized total return of 4.24%, and it sits in the top 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 8.52%, 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 4.22% compared to the category average of 9.92%. The standard deviation of the fund over the past 5 years is 6.76% compared to the category average of 11.75%. This makes the fund less volatile than its peers over the past half-decade.
Bond Duration
Modified duration is a measure of a specific bond's interest rate sensitivity, and is an excellent way to judge how fixed income securities will respond to a shifting rate environment.
If you believe interest rates will rise, this is an important factor to look at. BHYAX has a modified duration of 2.82, which suggests that the fund will decline 2.82% for every hundred-basis-point increase in interest rates.
With a beta of 0.5, this fund is less volatile than a broad market index of fixed income securities. Taking this into account, BHYAX has a positive alpha of 3.53 , which measures performance on a risk-adjusted basis.
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, BHYAX is a load fund. It has an expense ratio of 0.91% compared to the category average of 0.93%. From a cost perspective, BHYAX is actually cheaper than its peers.
This fund requires a minimum initial investment of $1,000, and each subsequent investment should be at least $50.
Fees charged by investment advisors have not been taken into consideration. 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, BlackRock High Yield Bond A ( BHYAX ) looks like a good potential choice for investors right now.
This could just be the start of your research on BHYAX in the High Yield - Bonds 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. 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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Is BHYAX a Strong Bond Fund Right Now?
On the lookout for a High Yield - Bonds fund? Starting with BlackRock High Yield Bond A (BHYAX - Free Report) is one possibility. BHYAX carries a Zacks Mutual Fund Rank of 1 (Strong Buy), which is based on various forecasting factors like size, cost, and past performance.
Objective
BHYAX 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
BlackRock is based in New York, NY, and is the manager of BHYAX. BlackRock High Yield Bond A debuted in November of 1998. Since then, BHYAX has accumulated assets of about $1.10 billion, according to the most recently available information. The fund is currently managed by Mitchell Garfin who has been in charge of the fund since December of 2009.
Performance
Of course, investors look for strong performance in funds. This fund in particular has delivered a 5-year annualized total return of 4.24%, and it sits in the top 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 8.52%, 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 4.22% compared to the category average of 9.92%. The standard deviation of the fund over the past 5 years is 6.76% compared to the category average of 11.75%. This makes the fund less volatile than its peers over the past half-decade.
Bond Duration
Modified duration is a measure of a specific bond's interest rate sensitivity, and is an excellent way to judge how fixed income securities will respond to a shifting rate environment.
If you believe interest rates will rise, this is an important factor to look at. BHYAX has a modified duration of 2.82, which suggests that the fund will decline 2.82% for every hundred-basis-point increase in interest rates.
With a beta of 0.5, this fund is less volatile than a broad market index of fixed income securities. Taking this into account, BHYAX has a positive alpha of 3.53 , which measures performance on a risk-adjusted basis.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, BHYAX is a load fund. It has an expense ratio of 0.91% compared to the category average of 0.93%. From a cost perspective, BHYAX is actually cheaper than its peers.
This fund requires a minimum initial investment of $1,000, and each subsequent investment should be at least $50.
Fees charged by investment advisors have not been taken into consideration. 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, BlackRock High Yield Bond A ( BHYAX ) looks like a good potential choice for investors right now.
This could just be the start of your research on BHYAX in the High Yield - Bonds 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. 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.