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Is Delaware Healthcare I (DLHIX) a Strong Mutual Fund Pick Right Now?
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Any investors hoping to find a Sector - Health fund might consider looking past Delaware Healthcare I (DLHIX - Free Report) . DLHIX holds a Zacks Mutual Fund Rank of 5 (Strong Sell), which is based on nine forecasting factors like size, cost, and past performance.
Objective
The world of Sector - Health funds is an area filled with options, such as DLHIX. Healthcare is one of the biggest sectors of the American economy, and Sector - Health mutual funds provide a great opportunity to invest in this industry. Here, funds can include everything from for-profit hospitals to pharmaceutical companies and medical device manufacturers.
History of Fund/Manager
Delaware Investments is based in Philadelphia, PA, and is the manager of DLHIX. Delaware Healthcare I debuted in September of 2007. Since then, DLHIX has accumulated assets of about $686.28 million, according to the most recently available information. The fund's current manager, Liu Er Chen, has been in charge of the fund since September of 2007.
Performance
Of course, investors look for strong performance in funds. This fund has delivered a 5-year annualized total return of 13.99%, and it sits 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 13.07%, 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 DLHIX over the past three years is 18.9% compared to the category average of 15.99%. Over the past 5 years, the standard deviation of the fund is 16.03% compared to the category average of 13.64%. This makes the fund more volatile than its peers over the past half-decade.
Risk Factors
Investors should note that the fund has a 5-year beta of 0.83, so it is likely going to be less volatile than the market at large. Alpha is an additional metric to take into consideration, since it represents a portfolio's performance on a risk-adjusted basis relative to a benchmark, which in this case, is the S&P 500. The fund has produced a negative alpha over the past 5 years of -0.14, which shows 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, DLHIX is a no load fund. It has an expense ratio of 1% compared to the category average of 1.32%. So, DLHIX is actually cheaper than its peers from a cost perspective.
Investors need to be aware that with this product, the minimum initial investment is $0; each subsequent investment has no minimum amount.
Bottom Line
Overall, Delaware Healthcare I ( DLHIX ) has a low Zacks Mutual Fund rank, and in conjunction with its comparatively strong performance, average downside risk, and lower fees, Delaware Healthcare I ( DLHIX ) looks like a somewhat weak choice for investors right now.
Your research on the Sector - Health segment doesn't have to stop here. You can check out all the great mutual fund tools we have to offer by going to www.zacks.com/funds/mutual-funds to see the additional features we offer 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 Delaware Healthcare I (DLHIX) a Strong Mutual Fund Pick Right Now?
Any investors hoping to find a Sector - Health fund might consider looking past Delaware Healthcare I (DLHIX - Free Report) . DLHIX holds a Zacks Mutual Fund Rank of 5 (Strong Sell), which is based on nine forecasting factors like size, cost, and past performance.
Objective
The world of Sector - Health funds is an area filled with options, such as DLHIX. Healthcare is one of the biggest sectors of the American economy, and Sector - Health mutual funds provide a great opportunity to invest in this industry. Here, funds can include everything from for-profit hospitals to pharmaceutical companies and medical device manufacturers.
History of Fund/Manager
Delaware Investments is based in Philadelphia, PA, and is the manager of DLHIX. Delaware Healthcare I debuted in September of 2007. Since then, DLHIX has accumulated assets of about $686.28 million, according to the most recently available information. The fund's current manager, Liu Er Chen, has been in charge of the fund since September of 2007.
Performance
Of course, investors look for strong performance in funds. This fund has delivered a 5-year annualized total return of 13.99%, and it sits 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 13.07%, 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 DLHIX over the past three years is 18.9% compared to the category average of 15.99%. Over the past 5 years, the standard deviation of the fund is 16.03% compared to the category average of 13.64%. This makes the fund more volatile than its peers over the past half-decade.
Risk Factors
Investors should note that the fund has a 5-year beta of 0.83, so it is likely going to be less volatile than the market at large. Alpha is an additional metric to take into consideration, since it represents a portfolio's performance on a risk-adjusted basis relative to a benchmark, which in this case, is the S&P 500. The fund has produced a negative alpha over the past 5 years of -0.14, which shows 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, DLHIX is a no load fund. It has an expense ratio of 1% compared to the category average of 1.32%. So, DLHIX is actually cheaper than its peers from a cost perspective.
Investors need to be aware that with this product, the minimum initial investment is $0; each subsequent investment has no minimum amount.
Bottom Line
Overall, Delaware Healthcare I ( DLHIX ) has a low Zacks Mutual Fund rank, and in conjunction with its comparatively strong performance, average downside risk, and lower fees, Delaware Healthcare I ( DLHIX ) looks like a somewhat weak choice for investors right now.
Your research on the Sector - Health segment doesn't have to stop here. You can check out all the great mutual fund tools we have to offer by going to www.zacks.com/funds/mutual-funds to see the additional features we offer 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.