Investors are eyeing BlackRock High Yield Bond Institutional (BHYIX) for its strong performance and low fees

BHYIX falls into the High Yield Bonds category, which means it invests in bonds that are below investment grade. These are often called “junk” bonds because they come with a higher risk of default. But the upside? They usually offer better yields compared to safer, investment-grade bonds.
BlackRock, based in New York, has been managing BHYIX since it launched in November 1998. The fund has grown to about $12.30 billion in assets, and Mitchell Garfin has been at the helm since December 2009.
When it comes to performance, BHYIX has done pretty well. Over the last five years, it has delivered an annualized total return of 4.23%, placing it in the top third of its peers. If you look at a shorter three-year period, it still holds strong with a 3.34% return, again in the top third.
Keep in mind that returns can be affected by fees, and BHYIX has a no-load structure with an expense ratio of 0.57%, which is lower than the category average of 0.95%. The minimum initial investment is $2 million, but there’s no minimum for additional investments.
In terms of risk, BHYIX has a lower standard deviation compared to its peers, meaning it’s less volatile. Its beta is 0.17, indicating it’s less volatile than the broader market. Plus, it has a positive alpha of 4.47, which is a good sign for risk-adjusted performance.
Overall, BHYIX looks like a solid option for investors right now, thanks to its strong ranking, decent performance, and lower fees. If you’re interested in learning more, check out Zacks.com for additional insights on this fund and others in the market.