Is GHYAX currently a solid bond fund?

HHaving trouble finding a mutual fund bond fund? Goldman Sachs High Yield Municipals A (GHYAX) is a potential starting point. GHYAX has a Zacks Mutual Fund Rank of 1 (Strong Buy), which is based on nine predictor factors such as size, cost, and past performance.

Fund/manager history

Goldman Sachs is responsible for GHYAX, and the company is based in New York, NY. The Goldman Sachs High Yield Municipals A debuted in April 2000 and GHYAX has managed to accumulate approximately $646.38 million in assets, according to the most recent information available. The current fund manager is a team of investment professionals.

Performance

Investors are naturally looking for high performance funds. GHYAX has a 5-year annualized total return of 3.34% and ranks in the top third among its peers in the category. Investors who prefer to analyze shorter time frames should look at its 3-year annualized total return of 1.01%, which puts it in the middle third over this period.

When looking at a fund’s performance, it’s also important to note the standard deviation of returns. The lower the standard deviation, the less volatility the fund experiences. Over the past three years, GHYAX’s standard deviation is 8.66%, compared to a category average of 13.77%. Looking at the last 5 years, the standard deviation of the fund is 6.93% compared to the category average of 12.18%. This makes the fund less volatile than its peers over the past half-decade.

GHYAX has a beta of 0.93, which means the fund is less volatile than a broad fixed income market index. With this in mind, it has a positive alpha of 1.33, which measures performance on a risk-adjusted basis.

Ratings

However, it’s worth noting that 36% of the bonds in this fund are unrated, so take the medium grade level with a bit of caution.

Expenses

As competition intensifies in the mutual fund market, costs become increasingly important. Compared to its otherwise identical counterpart, a low cost product will perform better, all other things being equal. Thus, it is essential for investors to take a closer look at the cost parameters. In terms of fees, GHYAX is a load fund. It has an expense ratio of 0.85% compared to the category average of 0.79%. GHYAX is actually more expensive than its peers when considering factors like cost.

Investors should also note that the minimum initial investment for the product is $1,000 and each subsequent investment must be $50.

Conclusion

Overall, Goldman Sachs High Yield Municipals A (GHYAX) has a high ranking for Zacks Mutual Funds, and in conjunction with its relatively strong performance, better downside risk, and higher fees, this fund appears to be a good potential choice for investors right now.

Don’t stop here for your mutual fund bond fund research. We also have a lot more on our site to help you find the best possible fund for your portfolio. Be sure to check www.zacks.com/funds/mutual-funds for more information about the world of funds, and feel free to compare GHYAX to its peers as well for more information. And don’t forget that Zacks has all your equity needs covered too! Be sure to check out Zacks.com for more information on our filtering capabilities, rankings, and all of our articles.

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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

About Meredith Campagna

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