Is SPHIX a Good Bond Fund Choice for Investors Right Now

Boston: So, you’re thinking about investing in Fidelity High Income, or SPHIX? Well, it might not be the best choice right now. This fund has a Zacks Mutual Fund Rank of 4, which is a sell signal. It’s in a crowded space of high-yield bonds, often called junk bonds, which are riskier but can offer higher returns.

Fidelity, based in Boston, has managed SPHIX since it launched in 1990, and it has over $2.42 billion in assets. But here’s the kicker: its performance isn’t great. Over the last five years, it only returned 2.9%, putting it in the bottom third of its peers. Even its three-year return of 2.27% isn’t impressive, landing it in the middle third.

When you look at volatility, SPHIX has a lower standard deviation than its peers, which means it’s less bumpy. It has a beta of 0.06, showing it’s less volatile than the broader market. Plus, it has a positive alpha of 3.08, which is a good sign for risk-adjusted performance.

On the cost side, SPHIX is a no-load fund with an expense ratio of 0.69%, cheaper than the average of 0.95% in its category. You can start investing with no minimum initial investment, which is a plus.

In summary, even with lower fees and average risk, SPHIX’s weak performance makes it a less appealing option for investors right now. If you want to dive deeper into SPHIX, check out Zacks.com for more insights and tools to help with your investment decisions.