Underlying Bond Market: FHTEX's price reflects the value of its bond holdings. Rising interest rates usually lower bond prices, decreasing the fund's NAV. Falling rates generally increase bond values and the NAV.

Credit Risk: Bonds held by FHTEX have issuer risk. Downgrades or defaults impact bond prices, lowering the NAV. Perceived creditworthiness greatly affects valuation.

Fund Flows: Large redemptions may force FHTEX to sell holdings, potentially at unfavorable prices, impacting the NAV negatively. Conversely, inflows might boost demand and NAV slightly.

Expense Ratio: FHTEX's expense ratio (fees) affects returns. Higher fees erode the NAV over time, reducing potential gains for investors when comparing to similar lower-cost funds.

Inflation Expectations: Rising inflation erodes bond values, potentially lowering FHTEX's price. Inflation expectation shifts influence yields and thus affect bond fund valuations.

Economic Growth: Strong economic growth can lead to higher interest rates, negatively impacting bond prices and thus FHTEX. Slow growth may have the opposite effect.

Federal Reserve Policy: The Federal Reserve's monetary policy decisions (interest rate adjustments, quantitative easing) have a significant influence on bond yields and subsequently affect FHTEX.