The Delaware National High Yield Municipal Bond Fund DVHIX LB Rating Report

Symbol: DVHIX
Category: Municipal Bond Fund/High Credit Risk Bond Fund
Style: Active
LB Rating: ***** 5 Stars
Last Updated: 12/18/12

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Using LB Ratings to choose a municipal bond fund
What you need to know about high yield municipal bond funds
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The Delaware National High Yield Municipal Bond Fund DVHIX

Summary: The Delaware National High Yield Municipal Bond Fund DVHIX has been kicking the competition’s butt for years, and we think will continue to do so in the future.

Commentary: If you don’t search carefully you would likely miss the Delaware National High Yield Municipal Bond fund DVHIX.  The fund has 3 share classes, two of which have been around for more than 10 years.  These are likely the ones you will come across when doing a search for the fund.  But there is just one problem.  Both those share classes have a load fee of 4.5%, which automatically bans them from being rated 5 stars here at Learn Bonds.

In 2008 however, Delaware investments introduced an institutional share class to the lineup which does not include a load fee.  Like many other funds with institutional share classes, if you invest through fidelity you can get access with a $2500 minimum investment.  That’s good news for the small investor who now has access to one of the top performing high yield municipal bond funds at an affordable price.

The Delaware National High Yield Municipal Bond Fund DVHIX Rating Criteria

Short-Term Performance: Excellent.  The fund has outperformed the average high yield municipal bond fund over the last 12 month and three year time periods.  Over the last 12 months, the fund has outperformed by 1.88% per year on average.  Over the last three years it has outperformed by 1.22% per year on average.

Long-Term Performance: Excellent.  The Delaware National High Yield Municipal bond fund has outperformed the average high yield municipal bond fund over both the last 5 and 10 year time periods.  Over the last 3 years it has outperformed by 1.22% per year on average.  It has outperformed by 2.89% per year on average over the last 10 years.

Risk Level Relative To Returns: Good.  The fund takes a bit more interest rate and credit risk than the average high yield municipal bond fund.  However it has provided a much superior return as a result.

Fees: Excellent. No sales load and a 0.60% expense ratio.  Make sure you ask for the DVHIX specifically as other share classes of this fund come with a big front end load fee.  You can learn more about bond mutual fund fees here.

Manager Tenure: The Delaware National High Yield Municipal Bond Fund’s DVHIX lead portfolio manager Joseph R. Baxter has been with the fund since 2003.


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Comments

  1. marc says

    I was wondering what the symbol was for the no-load class of shares that is available for purchase at fidelity funds. Fidelity could not find the symbol for purchase..thanks marc

    • David Waring says

      Hi Marc,

      Good to hear from you. The ticker is DVHIX which I see available at Fidelity with no load and a $2500 minimum. Let me know if there are any other questions.

      Thanks
      Dave

  2. Robert says

    I have just retired. I have funds in both Fidelity and Vanguard. I am seeking safety and return in the future. I feel a bear coming. You mentioned a Texes Muni that was good during the Seeking Alpha show I watched on CNBC. What was that fund and would funds in Vanguard be a good alternative. Thanks.
    Robert

    • David Waring says

      Hi Robert, Congrats on your retirement and thanks for reading and for the comment! We haven’t been on CNBC so I am not sure of the muni fund you are referring to. In general however I love Vanguard for their low fees and indexed approach to investing. Since I am not a financial advisor I can’t give advice specific to your situation but our top rated municipal bond fund is a Vanguard fund. You can learn more about it and other municipal bond funds at the link below:

      http://www.learnbonds.com/best-municipal-bond-funds/

      Best Regards, Dave

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