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Is BFRAX a Strong Bond Fund Right Now?

If investors are looking at the Mutual Fund Bond fund category, BlackRock Floating Rate Income A (BFRAX) could be a potential option. BFRAX possesses a Zacks Mutual Fund Rank of 1 (Strong Buy), which is based on various forecasting factors like size, cost, and past performance.

History of Fund/Manager

BlackRock is responsible for BFRAX, and the company is based out of New York, NY. Since BlackRock Floating Rate Income A made its debut in July of 2010, BFRAX has garnered more than $348.87 million in assets. A team of investment professionals is the fund's current manager.


Obviously, what investors are looking for in these funds is strong performance relative to their peers. This fund carries a 5-year annualized total return of 3.03%, 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 5.91%, 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 12.7%, the standard deviation of BFRAX over the past three years is 4.16%. The standard deviation of the fund over the past 5 years is 6.5% compared to the category average of 13.12%. This makes the fund less volatile than its peers over the past half-decade.

This fund has a beta of 0, meaning that it is less volatile than a broad market index of fixed income securities. Taking this into account, BFRAX has a positive alpha of 1.78, which measures performance on a risk-adjusted basis.


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, BFRAX is a load fund. It has an expense ratio of 0.90% compared to the category average of 0.83%. From a cost perspective, BFRAX is actually more expensive than its peers.

This fund requires a minimum initial investment of $1,000, and each subsequent investment should be at least $50.

Bottom Line

Overall, BlackRock Floating Rate Income A ( BFRAX ) has a high Zacks Mutual Fund rank, and in conjunction with its comparatively strong performance, better downside risk, and higher fees, BlackRock Floating Rate Income A ( BFRAX ) 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 There, you can see more about the ranking process, and dive even deeper into BFRAX 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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