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Is GHYAX a Strong Bond Fund Right Now?

Zacks.com logo Zacks.com 1/10/2022

If you have been looking for Mutual Fund Bond funds, a place to start could be Goldman Sachs High Yield Municipals A (GHYAX). GHYAX 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

GHYAX finds itself in the Goldman Sachs family, based out of New York, NY. Goldman Sachs High Yield Municipals A made its debut in April of 2000, and since then, GHYAX has accumulated about $646.38 million in assets, per the most up-to-date date available. The fund is currently managed by a team of investment professionals.

Performance

Investors naturally seek funds with strong performance. GHYAX has a 5-year annualized total return of 6.81% 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 6.87%, 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. GHYAX's standard deviation over the past three years is 7.84% compared to the category average of 13.49%. Looking at the past 5 years, the fund's standard deviation is 6.28% compared to the category average of 11.37%. This makes the fund less volatile than its peers over the past half-decade.

This fund has a beta of 0.84, meaning that it is less volatile than a broad market index of fixed income securities. Taking this into account, GHYAX has a positive alpha of 0.66, which measures performance on a risk-adjusted basis.

Ratings

However, it is worth noting that 28 % of the bonds in this fund are not ranked, so take the average quality level with a bit of caution.

Expenses

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, GHYAX is a load fund. It has an expense ratio of 0.85% compared to the category average of 0.80%. From a cost perspective, GHYAX is actually more expensive than its peers.

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

Bottom Line

Overall, Goldman Sachs High Yield Municipals A ( GHYAX ) has a high Zacks Mutual Fund rank, and in conjunction with its comparatively strong performance, better downside risk, and higher fees, this fund looks like a good potential choice for investors right now.

This could just be the start of your research on GHYAXin the Mutual Fund Bond 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. If you are more of a stock investor, make sure to also check out our Zacks Rank, and our full suite of tools we have available for novice and professional investors alike.

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