Is STYAX a Strong Bond Fund Right Now?
MF Bond Report for STYAX
If you've been stuck searching for Mutual Fund Bond funds, consider Wells Fargo Core Plus Bond A (STYAX) as a possibility. STYAX has 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
STYAX is a part of the Wells Fargo family of funds, a company based out of San Francisco, CA. Since Wells Fargo Core Plus Bond A made its debut in July of 1998, STYAX has garnered more than $299.99 million in assets. A team of investment professionals is the fund's current manager.
Of course, investors look for strong performance in funds. This fund carries a 5-year annualized total return of 5.09%, 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 7.18%, 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. Over the past three years, STYAX's standard deviation comes in at 4.34%, compared to the category average of 13.01%. Looking at the past 5 years, the fund's standard deviation is 3.68% compared to the category average of 10.81%. This makes the fund less volatile than its peers over the past half-decade.
STYAX carries a beta of 1.04, meaning that the fund is more volatile than a broad market index of fixed income securities. With this in mind, it has a positive alpha of 1.37, which measures performance on a risk-adjusted basis.
Investors should also consider a bond's rating, which is a grade ( 'AAA' to 'D' ) given to a bond that indicates its credit quality. With this letter scale in mind, STYAX has 42.95% in high quality bonds rated at least 'AA' or higher, while 33.39% are of medium quality, with ratings of 'A' to 'BBB'. The fund has an average quality of A, and focuses on high quality securities.
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, STYAX is a load fund. It has an expense ratio of 0.89% compared to the category average of 0.79%. From a cost perspective, STYAX is actually more expensive than its peers.
Investors need to be aware that with this product, the minimum initial investment is $1,000; each subsequent investment needs to be at least $100.
Overall, Wells Fargo Core Plus Bond A ( STYAX ) has a high Zacks Mutual Fund rank, and in conjunction with its comparatively strong performance, better downside risk, and higher fees, Wells Fargo Core Plus Bond A ( STYAX ) looks like a good potential choice for investors right now.
For additional information on the Mutual Fund Bond area of the mutual fund world, make sure to check out www.zacks.com/funds/mutual-funds. There, you can see more about the ranking process, and dive even deeper into STYAX too 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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