Fund Evaluator:
Colorado BondShares A Tax-Exempt (HICOX)
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Best Performing in Muni Single State Interm Over the Last Year
| 5.6% | Victory VA Bond (USVAX) |
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| 4.6% | Dupree TN Tax-Free Income (TNTIX) |
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| 4.2% | Brown Advisory Maryland Bond Inv (BIAMX) |
Fund Details
Colorado BondShares A Tax-Exempt Overview
Colorado BondShares A Tax-Exempt (HICOX) is an actively managed Municipal Bond Muni Single State Interm fund. Freedom Funds launched the fund in 1987.
The investment seeks to maximize income that is exempt from both federal and Colorado state income taxes while simultaneously preserving capital; it also seeks opportunities for capital appreciation. The manager will attempt to invest up to 100% and, except for temporary investments, will invest at least 80% of the value of its net assets (plus the amount of any borrowings for investment purposes) in tax-exempt bonds and other tax-exempt securities, including tax-exempt notes and tax-exempt municipal leases of the State of Colorado, its political subdivisions, municipalities and public authorities ("Tax-Exempt Obligations").
About Colorado BondShares A Tax-Exempt (HICOX)
There are 1 members of the management team with an average tenure of 35.85 years: Fred Kelly (1990). Management tenure is more important for actively managed funds than passive index funds.
The fund has 1 primary benchmark: Bloomberg Municipal TR USD index with a weighting of 100%. Colorado BondShares A Tax-Exempt has 343 securities in its portfolio. The top 10 holdings constitute 21.0% of the fund’s assets. The fund meets the SEC requirement of being classified as a diversified fund. The fund is not considered to have an ESG focus with its investment selection and management.
Colorado BondShares A Tax-Exempt is part of the Fixed Income global asset class and is within the Municipal Bond fund group. Colorado BondShares A Tax-Exempt has 0.5% of its portfolio invested in foreign issues. The overall assets allocated to domestic stock is 0.0%. There is 0.0% allocated to foreign stock, and 0.0% is allocated to preferred stocks. The bond allocation as a percentage of total assets is 77.8% (77.3% domestic bond, 0.5% foreign bond and 0.0% convertible bond). Colorado BondShares A Tax-Exempt has 22.6% of the portfolio in cash.
Assets Under Management
The fund has $1 billion in total assets, which is above the $84 million average for the Muni Single State Interm category. Normally, lower assets under management translates to higher average expense ratios, and greater total assets are desired. However, for some investment categories, such as small-cap investing, it may be difficult for the manager to fully employ the desired active strategy if assets grow too large or too quickly.
HICOX Performance and Fees
The expense ratio measures how much of a fund’s assets are used for administrative expenses and operating expenses, including adviser fees and fees for the transfer agent and custodial services. The Colorado BondShares A Tax-Exempt expense ratio is average compared to funds in the Muni Single State Interm category. Colorado BondShares A Tax-Exempt has an expense ratio of 0.59%, which is 29% lower than its category average, making the fund expense ratio grade a B. While it is difficult to predict returns, it is known that high annual expense ratios reduce your rate of return, and excessive fees are difficult to overcome. Active management normally comes with higher expense ratios than passive index management. Certain investment categories such as small company and foreign also normally have higher expense ratios. It is best to compare fund expense ratios against the category averages for meaningful assessments.
High portfolio turnover can translate to higher expenses and lower aftertax returns. Colorado BondShares A Tax-Exempt has a portfolio turnover rate of 13%, indicating that holds its assets around 0.1 years. By way of comparison, the average portfolio turnover is 40% for the Muni Single State Interm category.
Recently, in the month of August 2026, Colorado BondShares A Tax-Exempt returned -0.1%, which earned it a grade of B, as the Muni Single State Interm category had an average return of -0.3%. The letter grades of A, B, C, D and F are based upon relative rankings within the investment category. A grade of A, for example, would indicate that the return is in the highest 20% for that time period compared to all funds in that category.
Colorado BondShares A Tax-Exempt has a trailing yield of 4.87%, which is above the 3.02% category average. The fund normally distributes its income monthly and its capital gains annually.
It’s natural to seek the best-performing investments, but you must consider the relationship between risk and return and the impact of costs and taxes on your realized returns.
Colorado BondShares A Tax-Exempt Grades
Year to date, the fund has returned 2.3%, 2.3 percentage points better than the category, which translates into a grade of A. The fund has returned 5.9% over the past year (grade of A), 6.4% over the past three years (grade of A) and 3.8% per year over the past five years (grade of A) and 4.4% per year over the past 10 years (grade of A).
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HICOX Trailing NAV Total Returns Data as of 8/31/26
| Last Month |
Last Quarter |
Ann'l. 1Yr |
Ann'l. 3Yr |
Ann'l. 5Yr |
Ann'l. 10Yr |
|
| HICOX Return (NAV) | -0.1% | -0.1% | 5.9% | 6.4% | 3.8% | 4.4% |
| HICOX Grade | B | A | A | A | A | A |
| +/- Category | 0.2% | 1.2% | 2.0% | 3.5% | 3.6% | 3.2% |
| Muni Single State Interm Avg | -0.3% | -1.3% | 3.9% | 2.9% | 0.2% | 1.2% |
| HICOX Tax Cost Ratio | na | na | 0.0% | 0.0% | 0.0% | 0.1% |
HICOX Annual NAV Total ReturnsData as of 8/31/26
| 2026 | 2025 | 2024 | 2023 | 2022 | 2021 | 2020 | 2019 | 2018 | 2017 | 2016 | |
| HICOX Return (NAV) | 2.3% | 5.3% | 7.7% | 7.7% | -4.5% | 4.8% | 5.2% | 6.4% | 4.6% | 6.6% | 2.5% |
| HICOX Grade | A | A | A | A | A | A | A | A | A | A | A |
| +/- Category | 2.3% | 1.2% | 6.8% | 3.3% | 3.2% | 4.3% | 1.0% | 0.7% | 3.8% | 3.2% | 2.4% |
| Muni Single State Interm Avg | 0.0% | 4.0% | 0.9% | 4.5% | -7.7% | 0.5% | 4.2% | 5.7% | 0.8% | 3.5% | 0.1% |
| Risk Measures | |
| Standard Deviation: | 3.9% |
| Total Risk Index: | 0.32 - Low |
| Category Risk Index: | 0.80 - Low |
| Category Risk Grade: | A (15% Rank) |
| Beta: | 0.66 |
| R-Squared: | 90% |
| Leveraged Fund: | No |
| Inverse Fund: | No |
| Portfolio Characteristics | |
| Equity Investment Style: | na |
| Bond Investment Style: | na |
| Yield: | 4.9% |
| Dividend Distribution: | Monthly |
| Cap Gains Distribution: | Annually |
| Total Assets: | $1987 Mil |
| Fund Total Assets: | $1,987 Mil |
| Share Class Type: | A |
| Portfolio Turnover: | 14% |
Management Team
| Number of Managers: 1 | |||
| Longest Tenure: 35.9 years | |||
| Average Tenure: 35.9 years | |||
| Managers (Year): Kelly Fred (1990) | |||
Portfolio Composition (as of 6/30/26)
| # of Holdings: | 343 |
| % in Top 10 Holdings: | 21.0% |
| Fund is Non-Diversified: | No |
| % in Foreign Issues: | 0.5% |
Portfolio Allocation |
|
| Domestic Stock: | 0.0% |
| Foreign Stock: | 0.0% |
| Preferred Stock: | 0.0% |
| Domestic Bond: | 77.3% |
| Foreign Bond: | 0.5% |
| Convertible Bond: | 0.0% |
| Other: | -0.4% |
| Cash: | 22.6% |
Purchase Information
| Fund Family: | Freedom Funds |
| Phone Number: | 800-572-0069 |
| Website: | www.gratiofunds.com |
| Status: | Open |
| Inception Date: | June 4, 1987 |
| Min. Initial Purchase: | $ 500 |
| Min. Initial IRA Purchase: | $ 0 |
| True No-Load: | No |
| Front Load Maximum: | 4.75% |
| Deferred Charge Maximum: | 0.00% |
| Redemption Charge Maximum: | 0.00% |
| 12b-1 Fee: | na |
Expenses and Fees | |
| Expense Ratio (%): | 0.59% ( Rating : Avg ) |
| Category Average Expense Ratio (%): | 0.84% |
| Share Class: | Colorado BondShares A Tax-Exempt |
| Min. Subsequent Purchase: | $ 0 |
| Min. Subsequent IRA Purchase: | $ 0 |
