STATS: LOW-COST VS. HIGH-COST BOND FUNDS

corporate high yield

lowest cost

Expense 1 Year

FUND Ratio Return

1 Dreyfus High Yield Securities 0.02 14.62%

2 Vanguard Fixed High Yield 0.29 12.11%

3 Pimco High Yield Inst’l 0.50 12.67%

4 Merrill Lynch Corp High Income A 0.51 11.45%

5 Prudential High Yield Z 0.54 13.37%

6 Nicholas Income 0.55 12.41%

7 Delaware Pooled Trust High Yield 0.59 17.18%

8 Franklin AGE High Income Adv 0.60 11.78%

9 Morgan Stanley Inst’l High Yield A 0.66 14.68%

10 Dean Witter High Yield D 0.66 13.15%

highest cost

Expense 1 Year

FUND Ratio Return

1 Putnam High Yield Total Return B 2.27 13.86%

2 New England High Income B 2.19 12.07%

3 SunAmerica High Income B 2.14 13.88%

4 Northstar High Total Return B 2.14 10.35%

5 Davis High Income B 2.10 7.24%

6 Evergreen High Yield Bond B 2.08 14.14%

7 Van Kampen Amer Cap High Yield C 2.03 9.75%

8 Van Kampen Amer Cap High Yield B 2.02 9.85%

9 FBL High Yield Bond 2.00 9.70%

10 Morgan Stanley High Yield C 2.00 11.63%

AVERAGE 1.31 12.70%

The Dreyfus expense ratio was almost unnoticeable, leaving more of the investor’s dollar to earn above-average returns.

Corporate Investment Grade

lowest cost

Expense 1 Year

FUND Ratio Return

1 Dreyfus Bond Market Index Basic 0.15 10.67%

2 Vanguard Fixed Intermed Corporate 0.25 9.79%

3 Vanguard Fixed Short Term Corporate 0.25 7.25%

4 Vanguard Fixed Long Term Corporate 0.28 14.99%

5 Dreyfus Bond Market Index Inv 0.40 10.26%

6 Legg Mason Investment Grade Income Navig 0.42 10.89%

7 Ariel Premier Bond Inst’l 0.45 10.74%

8 Fidelity Spartan Short Term Bond 0.50 7.06%

9 UAM Inv Counselors of Md. Fixed Income Inst’l 0.50 9.52%

10 J.P. Morgan Inst’l Bond 0.50 9.74%

highest cost

Expense 1 Year

FUND Ratio Return

1 Merrill Lynch ABP Quality Bond C 4.15 9.12%

2 Merrill Lynch ABP Quality Bond B 4.08 9.21%

3 Merrill Lynch ABP Quality Bond D 3.47 9.87%

4 Merrill Lynch ABP Quality Bond A 3.23 10.03%

5 Alliance Bond Corporate Bond B 1.90 9.20%

6 Kemper Income & Cap Preservation B 1.90 8.11%

7 Alliance Bond Corporate C 1.90 9.20%

8 Kemper Income & Cap Preservation C 1.87 8.15%

9 Galaxy High Quality Bond B 1.73 9.61%

10 Sierra Trust Corporate Income B 1.70 12.22%

AVERAGE 1.17 9.67%

Dreyfus is cheapest here, beating famously thrifty Vanguard by 10 basis points. Vanguard wins the returns crown, though.

Multisector

lowest cost

Expense 1 Year

FUND Ratio Return

1 DFA One-Year Fixed Income 0.20 6.02%

2 One Group Ultra Short Term Income Fid 0.25 6.38%

3 Franklin Strategic Income 0.25 10.30%

4 Excelsior Inst’l Bond Index 0.30 9.66%

5 Firstar Bond Immdex Inst’l 0.42 10.39%

6 Hotchkis & Wiley Short-Term Invest 0.48 6.38%

7 Western Asset Trust Core Portfolio 0.50 10.92%

8 Excelsior Inst’l Income 0.50 9.51%

9 Vista Bond Inst’l 0.50 10.96%

10 One Group Ultra Short Term Income Inv 0.50 6.15%

highest cost

Expense 1 Year

FUND Ratio Return

1 Idex Flexible Income B 2.51 11.09%

2 PaineWebber Strategic Income B 2.43 9.18%

3 Idex Flexible Income C 2.41 11.19%

4 Northstar Strategic Income C 2.17 1.01%

5 Northstar Strategic Income B 2.17 1.11%

6 PaineWebber Strategic Income C 2.17 9.46%

7 North American Strategic Income C 2.15 9.51%

8 North American Strategic Income B 2.15 9.51%

9 ESC Strategic Income D 2.15 5.24%

10 Pioneer Bond C 2.13 8.99%

AVERAGE 1.26 9.42%

The highest-cost funds, Idex’s offerings. showed top returns, but Vista and Western Asset give more b
ang for the buck.

MUNICIPAL high yield

lowest cost

Expense 1 Year

FUND Ratio Return

1 Vanguard Muni High Yield 0.19 9.77%

2 Delaware Group Nat’l High Yield Muni A 0.30 9.94%

3 Prudential Muni High Yield Z 0.53 10.86%

4 American Century Benham Calif. High-Yield 0.55 10.52%

5 Merrill Lynch Muni Nat’l A 0.56 9.18%

6 Fidelity Spartan Muni Income 0.57 9.64%

7 Franklin High Yield Tax-Free Income I 0.61 10.76%

8 Eaton Vance High Yield Muni A 0.62 15.38%

9 Prudential Muni High Yield A 0.63 10.74%

10 Fidelity Spartan Aggressive Muni 0.63 9.84%

highest cost

Expense 1 Year

FUND Ratio Return

1 Fundamental Fixed High Yield Muni 3.00 15.90%

2 Davis Tax-Free High Income B 1.98 6.62%

3 PaineWebber Muni High Income B 1.96 10.25%

4 MFS Muni High Income B 1.86 9.53%

5 Colonial High Yield Muni B 1.86 9.45%

6 John Hancock High Yield Tax Free B 1.81 9.30%

7 Seligman Muni Series Calif. High Yield D 1.77 8.46%

8 Van Kampen Amer Cap Tax Free High Income C 1.71 8.52%

9 Van Kampen Amer Cap Tax Free High Income B 1.71 8.52%

10 Van Kampen Amer Cap High Yield Muni B 1.71 10.33%

AVERAGE 1.10 9.83%

Fundamental has the highest expense ratio – and returns. Eaton Vance does almost as well at about a fifth the cost.

MUNICIPAL single state

lowest cost

Expense 1 Year

FUND Ratio Return

1 MFS Pa. Muni A 0.10 10.28%

2 Oklahoma Muni 0.11 7.79%

3 Dupree N.C. Tax Free Short-to-Medium 0.12 4.91%

4 CoreFund Pa. Muni Y 0.14 8.51%

5 Dupree N.C. Tax Free Income 0.15 12.59%

6 Nuveen Flagship Ala. Muni R 0.19 11.69%

7 American Century-Benham Fla. Intermed Muni 0.20 7.98%

8 Delaware-Voyageur Tax Free Calif. A 0.20 12.40%

9 Intrust Kan. Tax-Exempt 0.20 7.16%

10 Highmark Calif. Tax Free Intermed F
id 0.21 7.82%

highest cost

Expense 1 Year

FUND Ratio Return

1 Carnegie Tax Exempt Ohio Gen’l 4.40 7.25%

2 Merrill Lynch Mich. Ltd Maturity B 3.86 4.50%

3 Merrill Lynch Mich. Ltd Maturity C 3.81 4.48%

4 Fundamental N.Y. Muni 3.64 -0.93%

5 Merrill Lynch Ariz. Ltd Maturity B 3.56 4.15%

6 Merrill Lynch Mich. Ltd Maturity A 3.50 4.88%

7 Merrill Lynch Mich. Ltd Maturity D 3.48 4.77%

8 Merrill Lynch Ariz. Ltd Maturity C 3.35 4.36%

9 Merrill Lynch Ariz. Ltd Maturity D 3.29 4.42%

10 Merrill Lynch Ariz. Ltd Maturity A 3.21 4.42%

AVERAGE 1.11 8.32%

Dupree North Carolina and Delaware Voyageur California provide top returns with expense ratios well below average.

treasuries

lowest cost

Expense 1 Year

FUND Ratio Return

1 Vanguard Admiral Short Term 0.15 6.98%

2 Vanguard Admiral Intermed 0.15 10.43%

3 Pacific Horizon Short-Term Gov’t A 0.25 5.95%

4 Vanguard Fixed Short Term Federal 0.25 6.92%

5 Vanguard Fixed Short Term 0.25 6.87%

6 Vanguard Fixed Intermed 0.25 10.24%

7 DFA Intermediate Gov’t Fixed Income 0.27 10.52%

8 DFA Five-Year Gov’t 0.28 6.91%

9 Kiewit Short-Term Gov’t 0.30 5.94%

10 Federated U.S. Gov’t Five-Ten-Year Inst’l 0.30 11.09%

Highest Cost

Expense 1 Year

FUND Ratio Return

1 Pauze U.S. Gov’t Short-Term Bond C 3.76 2.69%

2 Pauze U.S. Gov’t Short-Term Bond B 3.76 1.64%

3 Pauze U.S. Gov’t Intermed Bond B 3.44 6.26%

4 Alliance Ltd Maturity Gov’t B 3.14 6.60%

5 Alliance Ltd Maturity Gov’t C 3.13 6.61%

6 Pauze U.S. Gov’t Short-Term Bond A 2.78 3.43%

7 Pauze U.S. Gov’t Intermed Bond A 2.62 6.88%

8 Alliance Ltd Maturity Gov’t A 2.41 7.48%

9 Lord Abbett Investment Trust Ltd U.S. Gov’t C 2.33 6.
52%

10 Alliance Short-Term U.S. Gov’t C 2.11 3.72%

AVERAGE 1.08 7.34%

Vanguard pulls ahead here, with good returns for each duration and the lowest expense ratio by 10 basis points.

Expense ratios, as reported in fund prospectuses, include management fees, 12(b)1 fees for distribution and marketing and other fees. Funds that waived expenses are not ranked. Returns are through Feb. 28

SOURCE: CDA/Wiesenberger