Fund Evaluator:
Homestead Short-Term Bond (HOSBX)
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Fund Details
Homestead Short-Term Bond Overview
Homestead Short-Term Bond (HOSBX) is an actively managed Taxable Bond Short-Term Bond fund. Homestead launched the fund in 1991.
The investment seeks a high level of income consistent with maintaining minimum fluctuation of principal. The fund normally invests at least 80% of its net assets (plus borrowing for investment purposes) in fixed-income securities that are in the three highest credit categories as ranked by a NRSRO. These investments may include: commercial paper; corporate bonds; U.S. Treasury securities; securities issued or guaranteed by U.S. government entities, agencies or instrumentalities; municipal bonds; U.S. dollar-denominated debt securities of foreign issuers; and asset-backed and mortgage-backed securities.
About Homestead Short-Term Bond (HOSBX)
There are 2 members of the management team with an average tenure of 9.06 years: Mauricio Agudelo (2016), Ivan Naranjo (2018). Management tenure is more important for actively managed funds than passive index funds.
The fund has 2 primary benchmarks: Bloomberg US Agg Bond TR USD index with a weighting of 100% and ICE BofA 1-5Y US Corp&Govt TR USD index with a weighting of 100%. Homestead Short-Term Bond has 247 securities in its portfolio. The top 10 holdings constitute 36.5% 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.
Homestead Short-Term Bond is part of the Fixed Income global asset class and is within the Taxable Bond fund group. Homestead Short-Term Bond has 13.2% 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 0.6% is allocated to preferred stocks. The bond allocation as a percentage of total assets is 97.3% (84.1% domestic bond, 13.2% foreign bond and 0.0% convertible bond). Homestead Short-Term Bond has 2.1% of the portfolio in cash.
Assets Under Management
The fund has $413 million in total assets, which is below the $917 million average for the Short-Term Bond 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.
HOSBX 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 Homestead Short-Term Bond expense ratio is above average compared to funds in the Short-Term Bond category. Homestead Short-Term Bond has an expense ratio of 0.76%, which is 15% higher than its category average, making the fund expense ratio grade a D. 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. Homestead Short-Term Bond has a portfolio turnover rate of 265%, indicating that holds its assets around 0.0 years. By way of comparison, the average portfolio turnover is 135% for the Short-Term Bond category.
Recently, in the month of August 2026, Homestead Short-Term Bond returned 0.1%, which earned it a grade of F, as the Short-Term Bond 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.
Homestead Short-Term Bond has a trailing yield of 3.81%, which is below the 4.15% 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.
Homestead Short-Term Bond Grades
Year to date, the fund has returned 0.5%, 0.7 percentage points worse than the category, which translates into a grade of F. The fund has returned 2.0% over the past year (grade of F), 4.4% over the past three years (grade of F) and 1.7% per year over the past five years (grade of D) and 2.1% per year over the past 10 years (grade of D).
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HOSBX 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 |
|
| HOSBX Return (NAV) | 0.1% | 0.2% | 2.0% | 4.4% | 1.7% | 2.1% |
| HOSBX Grade | F | F | F | F | D | D |
| +/- Category | -0.2% | -0.2% | -0.8% | -0.6% | -0.6% | -0.2% |
| Short-Term Bond Avg | 0.3% | 0.4% | 2.7% | 5.0% | 2.3% | 2.3% |
| HOSBX Tax Cost Ratio | na | na | 1.5% | 1.5% | 1.3% | 1.1% |
HOSBX Annual NAV Total ReturnsData as of 8/31/26
| 2026 | 2025 | 2024 | 2023 | 2022 | 2021 | 2020 | 2019 | 2018 | 2017 | 2016 | |
| HOSBX Return (NAV) | 0.5% | 5.9% | 4.1% | 5.4% | -5.7% | -1.1% | 5.4% | 3.9% | 1.7% | 1.7% | 1.7% |
| HOSBX Grade | F | C | F | C | D | F | A | F | A | C | C |
| +/- Category | -0.7% | -0.0% | -0.8% | -0.2% | -0.7% | -1.1% | 1.2% | -0.9% | 1.0% | -0.2% | -0.8% |
| Short-Term Bond Avg | 1.2% | 5.9% | 4.9% | 5.6% | -5.0% | -0.0% | 4.2% | 4.8% | 0.7% | 1.9% | 2.5% |
| Risk Measures | |
| Standard Deviation: | 2.2% |
| Total Risk Index: | 0.18 - Low |
| Category Risk Index: | 1.09 - Above Average |
| Category Risk Grade: | D (72% Rank) |
| Beta: | 0.36 |
| R-Squared: | 88% |
| Leveraged Fund: | No |
| Inverse Fund: | No |
| Portfolio Characteristics | |
| Equity Investment Style: | na |
| Bond Investment Style: | na |
| Yield: | 3.8% |
| Dividend Distribution: | Monthly |
| Cap Gains Distribution: | Annually |
| Total Assets: | $413 Mil |
| Fund Total Assets: | $ 413 Mil |
| Share Class Type: | No Load |
| Portfolio Turnover: | 265% |
Management Team
| Number of Managers: 2 | |||
| Longest Tenure: 10.3 years | |||
| Average Tenure: 9.1 years | |||
| Managers (Year): Agudelo Mauricio (2016), Naranjo Ivan (2018) | |||
Portfolio Composition (as of 6/30/26)
| # of Holdings: | 247 |
| % in Top 10 Holdings: | 36.5% |
| Fund is Non-Diversified: | No |
| % in Foreign Issues: | 13.2% |
Portfolio Allocation |
|
| Domestic Stock: | 0.0% |
| Foreign Stock: | 0.0% |
| Preferred Stock: | 0.6% |
| Domestic Bond: | 84.1% |
| Foreign Bond: | 13.2% |
| Convertible Bond: | 0.0% |
| Other: | 0.0% |
| Cash: | 2.1% |
Purchase Information
| Fund Family: | Homestead |
| Phone Number: | 800-258-3030 |
| Website: | www.homesteadfunds.com |
| Status: | Open |
| Inception Date: | November 5, 1991 |
| Min. Initial Purchase: | $ 500 |
| Min. Initial IRA Purchase: | $ 200 |
| True No-Load: | Yes |
| Front Load Maximum: | 0.00% |
| Deferred Charge Maximum: | 0.00% |
| Redemption Charge Maximum: | 0.00% |
| 12b-1 Fee: | na |
Expenses and Fees | |
| Expense Ratio (%): | 0.76% ( Rating : Above Avg ) |
| Category Average Expense Ratio (%): | 0.66% |
| Share Class: | Homestead Short-Term Bond |
| Min. Subsequent Purchase: | $ 0 |
| Min. Subsequent IRA Purchase: | $ 0 |
