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Having trouble finding an Investment Grade Bond - Short fund? Thompson Bond Fund (THOPX - Free Report) is a potential starting point. THOPX has a Zacks Mutual Fund Rank of 1 (Strong Buy), which is based on various forecasting factors like size, cost, and past performance.
Objective
THOPX is part of the Investment Grade Bond - Short category, a segment that boasts an array of other possible selections. Investment Grade Bond - Short funds target the short end of the curve by focusing on bonds that mature in less than two years. Fixed income instruments with this maturity level typically have low duration risk and pay out small yields, at least in comparison to their longer-dated peers. Also, these funds tend to be safer because of their focus on investment grade, but yields will be lower than could be found in the junk bond category.
History of Fund/Manager
Thompson is based in Madison, WI, and is the manager of THOPX. The Thompson Bond Fund made its debut in February of 1992 and THOPX has managed to accumulate roughly $1.36 billion in assets, as of the most recently available information. The fund is currently managed by Jason Stephens who has been in charge of the fund since February of 2009.
Performance
Investors naturally seek funds with strong performance. This fund in particular has delivered a 5-year annualized total return of 2.61%, 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 2.5%, 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. Compared to the category average of 4%, the standard deviation of THOPX over the past three years is 3.55%. Looking at the past 5 years, the fund's standard deviation is 5.68% compared to the category average of 0%. This makes the fund more volatile than its peers over the past half-decade.
With a beta of 0.21, this fund is less volatile than a broad market index of fixed income securities. Taking this into account, THOPX has a positive alpha of 1.15, which measures performance on a risk-adjusted basis.
Ratings
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, THOPX is a no load fund. It has an expense ratio of 0.75% compared to the category average of 0%. Looking at the fund from a cost perspective, THOPX is actually more expensive than its peers.
Investors need to be aware that with this product, the minimum initial investment is $250; each subsequent investment needs to be at least $50.
Fees charged by investment advisors have not been taken into considiration. Returns would be less if those were included.
Bottom Line
Overall, even with its comparatively strong performance, worse downside risk, and higher fees, Thompson Bond Fund ( THOPX ) has a high Zacks Mutual Fund rank, and therefore looks a good potential choice for investors right now.
For additional information on this product, or to compare it to other mutual funds in the Investment Grade Bond - Short, make sure to go to www.zacks.com/funds/mutual-funds for additional information. Want to learn even more? We have a full suite of tools on stocks that you can use to find the best choices for your portfolio too, no matter what kind of investor you are.
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Is THOPX a Strong Bond Fund Right Now?
Having trouble finding an Investment Grade Bond - Short fund? Thompson Bond Fund (THOPX - Free Report) is a potential starting point. THOPX has a Zacks Mutual Fund Rank of 1 (Strong Buy), which is based on various forecasting factors like size, cost, and past performance.
Objective
THOPX is part of the Investment Grade Bond - Short category, a segment that boasts an array of other possible selections. Investment Grade Bond - Short funds target the short end of the curve by focusing on bonds that mature in less than two years. Fixed income instruments with this maturity level typically have low duration risk and pay out small yields, at least in comparison to their longer-dated peers. Also, these funds tend to be safer because of their focus on investment grade, but yields will be lower than could be found in the junk bond category.
History of Fund/Manager
Thompson is based in Madison, WI, and is the manager of THOPX. The Thompson Bond Fund made its debut in February of 1992 and THOPX has managed to accumulate roughly $1.36 billion in assets, as of the most recently available information. The fund is currently managed by Jason Stephens who has been in charge of the fund since February of 2009.
Performance
Investors naturally seek funds with strong performance. This fund in particular has delivered a 5-year annualized total return of 2.61%, 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 2.5%, 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. Compared to the category average of 4%, the standard deviation of THOPX over the past three years is 3.55%. Looking at the past 5 years, the fund's standard deviation is 5.68% compared to the category average of 0%. This makes the fund more volatile than its peers over the past half-decade.
With a beta of 0.21, this fund is less volatile than a broad market index of fixed income securities. Taking this into account, THOPX has a positive alpha of 1.15, which measures performance on a risk-adjusted basis.
Ratings
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, THOPX is a no load fund. It has an expense ratio of 0.75% compared to the category average of 0%. Looking at the fund from a cost perspective, THOPX is actually more expensive than its peers.
Investors need to be aware that with this product, the minimum initial investment is $250; each subsequent investment needs to be at least $50.
Fees charged by investment advisors have not been taken into considiration. Returns would be less if those were included.
Bottom Line
Overall, even with its comparatively strong performance, worse downside risk, and higher fees, Thompson Bond Fund ( THOPX ) has a high Zacks Mutual Fund rank, and therefore looks a good potential choice for investors right now.
For additional information on this product, or to compare it to other mutual funds in the Investment Grade Bond - Short, make sure to go to www.zacks.com/funds/mutual-funds for additional information. Want to learn even more? We have a full suite of tools on stocks that you can use to find the best choices for your portfolio too, no matter what kind of investor you are.