Is THOPX a Strong Bond Fund Right Now?

If you've been stuck searching for Mutual Fund Bond funds, consider Thompson Bond Fund (THOPX) as a possibility. THOPX carries 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

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 $1.91 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

Of course, investors look for strong performance in funds. This fund carries a 5-year annualized total return of 1.36%, and is 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 0.15%, which places it in the middle 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. Compared to the category average of 3.38%, the standard deviation of THOPX over the past three years is 6.65%. The fund's standard deviation over the past 5 years is 5.16% compared to the category average of 2.73%. This makes the fund more volatile than its peers over the past half-decade.

THOPX carries a beta of -0.01, meaning that the fund is less volatile than a broad market index of fixed income securities. With this in mind, it has a positive alpha of 0.53, which measures performance on a risk-adjusted basis.

Ratings

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, THOPX is a no load fund. It has an expense ratio of 0.72% compared to the category average of 0.68%. So, THOPX is actually more expensive than its peers from a cost perspective.

Investors need to be aware that with this product, the minimum initial investment is $250; each subsequent investment needs to be at least $50.

Bottom Line

Overall, Thompson Bond Fund ( THOPX ) has a high Zacks Mutual Fund rank, and in conjunction with its comparatively strong performance, average downside risk, and higher fees, Thompson Bond Fund ( THOPX ) looks like a good potential choice for investors right now.

Want even more information about THOPX? Then go over to Zacks.com and check out our mutual fund comparison tool, and all of the other great features that we have to help you with your mutual fund analysis 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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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.