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Is Shelton Nasdaq-100 Index Direct (NASDX) a Strong Mutual Fund Pick Right Now?
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Any investors who are searching for Index funds should take a look at Shelton Nasdaq-100 Index Direct (NASDX - Free Report) . While this fund is not tracked by the Zacks Mutual Fund Rank, we were able to examine other factors like performance, volatility, and cost.
History of Fund/Manager
Shelton is based in Denver, CO, and is the manager of NASDX. Since Shelton Nasdaq-100 Index Direct made its debut in April of 2000, NASDX has garnered more than $1.04 billion in assets. Stephen C. Rogers is the fund's current manager and has held that role since December of 2003.
Performance
Of course, investors look for strong performance in funds. This fund has delivered a 5-year annualized total return of 26.33%, and is in the top third among its category peers. If you're interested in shorter time frames, do not dismiss looking at the fund's 3-year annualized total return of 28.75%, 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 NASDX over the past three years is 20.08% compared to the category average of 16.67%. The fund's standard deviation over the past 5 years is 16.8% compared to the category average of 13.92%. This makes the fund more volatile than its peers over the past half-decade.
Risk Factors
With a 5-year beta of 1.02, the fund is likely to be as volatile as the market average. Because alpha represents a portfolio's performance on a risk-adjusted basis relative to a benchmark, which is the S&P 500 in this case, one should pay attention to this metric as well. With a positive alpha of 7.55, managers in this portfolio are skilled in picking 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, NASDX is a no load fund. It has an expense ratio of 0.50% compared to the category average of 0.80%. NASDX is actually cheaper than its peers when you consider factors like cost.
Investors should also note that the minimum initial investment for the product is $1,000 and that each subsequent investment needs to be at $100.
Bottom Line
For additional information on this product, or to compare it to other mutual funds in the Index, make sure to go to www.zacks.com/funds/mutual-funds for additional information. If you want to check out our stock reports as well, make sure to go to Zacks.com to see all of the great tools we have to offer, including our time-tested Zacks Rank.
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Is Shelton Nasdaq-100 Index Direct (NASDX) a Strong Mutual Fund Pick Right Now?
Any investors who are searching for Index funds should take a look at Shelton Nasdaq-100 Index Direct (NASDX - Free Report) . While this fund is not tracked by the Zacks Mutual Fund Rank, we were able to examine other factors like performance, volatility, and cost.
History of Fund/Manager
Shelton is based in Denver, CO, and is the manager of NASDX. Since Shelton Nasdaq-100 Index Direct made its debut in April of 2000, NASDX has garnered more than $1.04 billion in assets. Stephen C. Rogers is the fund's current manager and has held that role since December of 2003.
Performance
Of course, investors look for strong performance in funds. This fund has delivered a 5-year annualized total return of 26.33%, and is in the top third among its category peers. If you're interested in shorter time frames, do not dismiss looking at the fund's 3-year annualized total return of 28.75%, 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 NASDX over the past three years is 20.08% compared to the category average of 16.67%. The fund's standard deviation over the past 5 years is 16.8% compared to the category average of 13.92%. This makes the fund more volatile than its peers over the past half-decade.
Risk Factors
With a 5-year beta of 1.02, the fund is likely to be as volatile as the market average. Because alpha represents a portfolio's performance on a risk-adjusted basis relative to a benchmark, which is the S&P 500 in this case, one should pay attention to this metric as well. With a positive alpha of 7.55, managers in this portfolio are skilled in picking 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, NASDX is a no load fund. It has an expense ratio of 0.50% compared to the category average of 0.80%. NASDX is actually cheaper than its peers when you consider factors like cost.
Investors should also note that the minimum initial investment for the product is $1,000 and that each subsequent investment needs to be at $100.
Bottom Line
For additional information on this product, or to compare it to other mutual funds in the Index, make sure to go to www.zacks.com/funds/mutual-funds for additional information. If you want to check out our stock reports as well, make sure to go to Zacks.com to see all of the great tools we have to offer, including our time-tested Zacks Rank.