Any investors hoping to find a High Yield - Bonds fund could think about starting with Virtus Seix Floating Rate High Income I (SAMBX). SAMBX holds a Zacks Mutual Fund Rank of 2 (Buy), which is based on various forecasting factors like size, cost, and past performance.

Objective

SAMBX is part of the High Yield - Bonds section, which is a segment that boasts many possible options. Often referred to as " junk " bonds, High Yield - Bonds funds sit below investment grade, meaning they are at a high default risk compared to their investment grade peers. However, one advantage to junk bonds is that they generally pay out higher yields while posing similar interest rate risks to their investment grade counterparts.

History of Fund/Manager

Virtus Funds is based in Hartford, CT, and is the manager of SAMBX. Virtus Seix Floating Rate High Income I debuted in March of 2006. Since then, SAMBX has accumulated assets of about $1.20 billion, according to the most recently available information. The fund is currently managed by a team of investment professionals.

Performance

Obviously, what investors are looking for in these funds is strong performance relative to their peers. This fund in particular has delivered a 5-year annualized total return of 4.37%, 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 5.69%, 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. The standard deviation of SAMBX over the past three years is 3.75% compared to the category average of 36%. Over the past 5 years, the standard deviation of the fund is 6.79% compared to the category average of -16%. This makes the fund more volatile than its peers over the past half-decade.

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, SAMBX is a no load fund. It has an expense ratio of 0.64% compared to the category average of 1%. From a cost perspective, SAMBX is actually cheaper than its peers.