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Is BHYSX a Strong Bond Fund Right Now?

On the lookout for a Mutual Fund Bond fund? Starting with BlackRock High Yield Bond Services (BHYSX) is one possibility. BHYSX bears a Zacks Mutual Fund Rank of 1 (Strong Buy), which is based on various forecasting factors like size, cost, and past performance.

History of Fund/Manager

BlackRock is based in New York, NY, and is the manager of BHYSX. Since BlackRock High Yield Bond Services made its debut in November of 1998, BHYSX has garnered more than $79.90 million in assets. The fund's current manager is a team of investment professionals.

Performance

Obviously, what investors are looking for in these funds is strong performance relative to their peers. This fund has delivered a 5-year annualized total return of 2.85%, and is in the top third among its category peers. Investors who prefer analyzing shorter time frames should look at its 3-year annualized total return of 1.44%, 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. The standard deviation of BHYSX over the past three years is 8.15% compared to the category average of 13.16%. The fund's standard deviation over the past 5 years is 9.51% compared to the category average of 14.24%. This makes the fund less volatile than its peers over the past half-decade.

With a beta of 0.2, this fund is less volatile than a broad market index of fixed income securities. Taking this into account, BHYSX has a positive alpha of 2.9, which measures performance on a risk-adjusted basis.

Expenses

For investors, taking a closer look at cost-related metrics is key, since costs are increasingly important for mutual fund investing. Competition is heating up in this space, and a lower cost product will likely outperform its otherwise identical counterpart, all things being equal. In terms of fees, BHYSX is a no load fund. It has an expense ratio of 0.84% compared to the category average of 0.98%. So, BHYSX is actually cheaper than its peers from a cost perspective.

Investors should also note that the minimum initial investment for the product is $5,000 and that each subsequent investment has no minimum amount.

Fees charged by investment advisors have not been taken into considiration. Returns would be less if those were included.

Bottom Line

Overall, BlackRock High Yield Bond Services ( BHYSX ) 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.

Don't stop here for your research on Mutual Fund Bond funds. We also have plenty more on our site in order to help you find the best possible fund for your portfolio. Make sure to check out www.zacks.com/funds/mutual-funds for more information about the world of funds, and feel free to compare BHYSX to its peers as well for additional information. Zacks provides a full suite of tools to help you analyze your portfolio - both funds and stocks - in the most efficient way possible.

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