DFA One-Year Fixed-Income Fund (DFIHX)

DFA One-Year Fixed-Income Fund (DFIHX) is a popular taxable bond mutual fund. It invests mainly in short duration bonds.

DFA One-Year Fixed-Income Fund (DFIHX)

The investment objective of DFA One-Year Fixed-Income Fund is to seek a stable real return in excess of the rate of inflation with a minimum of risk. The mutual fund utilizes its assets to purchase a diversified of high quality fixed income securities that typically mature in one year or less. It invests in U.S. government obligations, dollar-denominated obligations of foreign issuers issued in the U.S., foreign government, and bank obligations.

The fund mainly invests in certificates of deposit (CD), commercial paper, bankers' acceptances, notes and bonds. It may concentrate its investments in obligations of U.S. and foreign banks and bank holding companies.

Fund Details
DFA One-Year Fixed-Income Fund
DFIHX fund
  • Fund Inception Date: July 24, 1983
  • Ticker Symbol: DFIHX
  • CUSIP: 233-203-603
  • Beta (3yr): 0.07
  • Rank in category (YTD): 34%
  • Category: Ultrashort Bond
  • Distribution: 0.51%
  • Capital Gains: 0%
  • Expense Ratio: 0.17%
  • Net Assets: $ 7.9 billion
  • Number of Years Up: 29 years
  • Number of Years Down: 0 years
  • Average Duration: 0.86 years
  • Average Maturity: 0.87 years
  • Annual Turnover Rate: 77.00%
Updated on 3/9/2013

This fixed income mutual fund has $7.9 billion of total net assets. It also has a dividend yield of 0.51%. The recent dividend distribution was given in December 212 in the amount of $0.01. Morningstar analysts rank this fund with 3-stars and Silver rating. Since December 1991, it has been managed by David A. Plecha. As part of Ultrashort Bond mutual fund, it has low annual expense ratio of 0.17% compared to the average ratio of 0.64%.

More: Best Ultrashort Bond Mutual Funds 2012

In 2013, the YTD return of this fund is 0.12%. The fund’s benchmarks are Bank of America Merrill Lynch 6-Month US Treasury Bill Index and Bank of America Merrill Lynch 1-Year US Treasury Note Index. Since its inception, this DFA fund has always provided positive returns. The best 1 year total return was achieved in 2000 with 6.73% and the worst was in 2011 with 0.59%.

This DFIHX fund can be purchased from a limited option of 37 brokerages, such as Scottrade TF, Invest n Retire, Scottrade Load, JP Morgan, Bear Stearns, etc. There is a management fee of 0.15% for investing in this fund.

The top holdings as of January 2013 are Federal Home Loan Mortgage Corp (3.84%), Societe Financement De L’economie Francaise (2.74%) and Federal National Mortgage Association (2.21%).

According to the fund prospectus, the principal risks are Market risk, Foreign securities and currencies risk, Foreign government debt risk, Interest rate risk, Credit risk, Risks of Banking Concentration, Income risk, Securities Lending risk, etc.

Disclosure: No Position


Post a Comment