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Is Gabelli Utilities AAA (GABUX) a Strong Mutual Fund Pick Right Now?
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Sector - Utilities fund seekers should not consider taking a look at Gabelli Utilities AAA (GABUX - Free Report) at this time. GABUX bears a Zacks Mutual Fund Rank of 5 (Strong Sell), which is based on nine forecasting factors like size, cost, and past performance.
Objective
We classify GABUX in the Sector - Utilities category, an area that is rife with possible choices. Sector - Utilities funds focus their investments on firms that provide essential daily services to millions of people like electric power, gas distribution, and water supply. All in all, the utility industry is a perfect fit for those investors looking for stability and low volatility.
History of Fund/Manager
Gabelli Funds is responsible for GABUX, and the company is based out of Rye, NY. The Gabelli Utilities AAA made its debut in January of 2002 and GABUX has managed to accumulate roughly $256.18 million in assets, as of the most recently available information. A team of investment professionals is the fund's current manager.
Performance
Obviously, what investors are looking for in these funds is strong performance relative to their peers. GABUX has a 5-year annualized total return of 6.8% and is in the top third among its category peers. But if you are looking for a shorter time frame, it is also worth looking at its 3-year annualized total return of 2.09%, which places it in the top third during this time-frame.
When looking at a fund's performance, it is also important to note the standard deviation of the returns. The lower the standard deviation, the less volatility the fund experiences. The standard deviation of GABUX over the past three years is 13.23% compared to the category average of 14.73%. The fund's standard deviation over the past 5 years is 11.54% compared to the category average of 12.68%. This makes the fund less volatile than its peers over the past half-decade.
Risk Factors
With a 5-year beta of 0.52, the fund is likely to be less volatile than the market average. Another factor to consider is alpha, as it reflects a portfolio's performance on a risk-adjusted basis relative to a benchmark-in this case, the S&P 500. Over the past 5 years, the fund has a negative alpha of -0.73. This means that managers in this portfolio find it difficult to pick securities that generate better-than-benchmark returns.
Expenses
As competition heats up in the mutual fund market, costs become increasingly important. Compared to its otherwise identical counterpart, a low-cost product will be an outperformer, all other things being equal. Thus, taking a closer look at cost-related metrics is vital for investors. In terms of fees, GABUX is a no load fund. It has an expense ratio of 1.38% compared to the category average of 1.25%. So, GABUX is actually more expensive than its peers from a cost perspective.
This fund requires a minimum initial investment of $1,000, while there is no minimum for each subsequent investment.
Bottom Line
Overall, Gabelli Utilities AAA ( GABUX ) has a low Zacks Mutual Fund rank, and in conjunction with its comparatively strong performance, average downside risk, and higher fees, Gabelli Utilities AAA ( GABUX ) looks like a poor potential choice for investors right now.
This could just be the start of your research on GABUXin the Sector - Utilities category. Consider going to www.zacks.com/funds/mutual-funds for additional information about this fund, and all the others that we rank as well for additional information. Zacks provides a full suite of tools to help you analyze your portfolio - both funds and stocks - in the most efficient way possible.
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Is Gabelli Utilities AAA (GABUX) a Strong Mutual Fund Pick Right Now?
Sector - Utilities fund seekers should not consider taking a look at Gabelli Utilities AAA (GABUX - Free Report) at this time. GABUX bears a Zacks Mutual Fund Rank of 5 (Strong Sell), which is based on nine forecasting factors like size, cost, and past performance.
Objective
We classify GABUX in the Sector - Utilities category, an area that is rife with possible choices. Sector - Utilities funds focus their investments on firms that provide essential daily services to millions of people like electric power, gas distribution, and water supply. All in all, the utility industry is a perfect fit for those investors looking for stability and low volatility.
History of Fund/Manager
Gabelli Funds is responsible for GABUX, and the company is based out of Rye, NY. The Gabelli Utilities AAA made its debut in January of 2002 and GABUX has managed to accumulate roughly $256.18 million in assets, as of the most recently available information. A team of investment professionals is the fund's current manager.
Performance
Obviously, what investors are looking for in these funds is strong performance relative to their peers. GABUX has a 5-year annualized total return of 6.8% and is in the top third among its category peers. But if you are looking for a shorter time frame, it is also worth looking at its 3-year annualized total return of 2.09%, which places it in the top third during this time-frame.
When looking at a fund's performance, it is also important to note the standard deviation of the returns. The lower the standard deviation, the less volatility the fund experiences. The standard deviation of GABUX over the past three years is 13.23% compared to the category average of 14.73%. The fund's standard deviation over the past 5 years is 11.54% compared to the category average of 12.68%. This makes the fund less volatile than its peers over the past half-decade.
Risk Factors
With a 5-year beta of 0.52, the fund is likely to be less volatile than the market average. Another factor to consider is alpha, as it reflects a portfolio's performance on a risk-adjusted basis relative to a benchmark-in this case, the S&P 500. Over the past 5 years, the fund has a negative alpha of -0.73. This means that managers in this portfolio find it difficult to pick securities that generate better-than-benchmark returns.
Expenses
As competition heats up in the mutual fund market, costs become increasingly important. Compared to its otherwise identical counterpart, a low-cost product will be an outperformer, all other things being equal. Thus, taking a closer look at cost-related metrics is vital for investors. In terms of fees, GABUX is a no load fund. It has an expense ratio of 1.38% compared to the category average of 1.25%. So, GABUX is actually more expensive than its peers from a cost perspective.
This fund requires a minimum initial investment of $1,000, while there is no minimum for each subsequent investment.
Bottom Line
Overall, Gabelli Utilities AAA ( GABUX ) has a low Zacks Mutual Fund rank, and in conjunction with its comparatively strong performance, average downside risk, and higher fees, Gabelli Utilities AAA ( GABUX ) looks like a poor potential choice for investors right now.
This could just be the start of your research on GABUXin the Sector - Utilities category. Consider going to www.zacks.com/funds/mutual-funds for additional information about this fund, and all the others that we rank as well for additional information. Zacks provides a full suite of tools to help you analyze your portfolio - both funds and stocks - in the most efficient way possible.