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Is Invesco Developing Markets R6 (ODVIX) a Strong Mutual Fund Pick Right Now?
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Mutual Fund Equity Report fund seekers should not consider taking a look at Invesco Developing Markets R6 (ODVIX - Free Report) at this time. ODVIX holds a Zacks Mutual Fund Rank of 5 (Strong Sell), which is based on nine forecasting factors like size, cost, and past performance.
History of Fund/Manager
Invesco is based in Kansas City, MO, and is the manager of ODVIX. Invesco Developing Markets R6 debuted in December of 2011. Since then, ODVIX has accumulated assets of about $9.37 billion, according to the most recently available information. Justin Leverenz is the fund's current manager and has held that role since December of 2011.
Performance
Obviously, what investors are looking for in these funds is strong performance relative to their peers. ODVIX has a 5-year annualized total return of -4.08% and is in the bottom third among its category peers. Investors who prefer analyzing shorter time frames should look at its 3-year annualized total return of -8.28%, which places it in the bottom 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. Compared to the category average of 17.13%, the standard deviation of ODVIX over the past three years is 19.55%. Over the past 5 years, the standard deviation of the fund is 17.82% compared to the category average of 15.13%. 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 0.75, so it is likely going to be less volatile than the market at large. 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. ODVIX's 5-year performance has produced a negative alpha of -10.95, which means managers in this portfolio find it difficult to pick securities that generate better-than-benchmark returns.
Expenses
For investors, taking a closer look at cost-related metrics is key, since costs are increasingly important for mutual fund investing. Competition is heating up in this space, and a lower cost product will likely outperform its otherwise identical counterpart, all things being equal. In terms of fees, ODVIX is a no load fund. It has an expense ratio of 0.84% compared to the category average of 1.15%. From a cost perspective, ODVIX is actually cheaper than its peers.
Investors need to be aware that with this product, the minimum initial investment is $1 million; each subsequent investment has no minimum amount.
Bottom Line
Overall, Invesco Developing Markets R6 ( ODVIX ) has a low Zacks Mutual Fund rank, and in conjunction with its comparatively weak performance, average downside risk, and lower fees, Invesco Developing Markets R6 ( ODVIX ) looks like a somewhat weak choice for investors right now.
Want even more information about ODVIX? Then go over to Zacks.com and check out our mutual fund comparison tool, and all of the other great features that we have to help you with your mutual fund analysis for additional information. And don't forget, Zacks has all of your needs covered on the equity side too! Make sure to check out Zacks.com for more information on our screening capabilities, Rank, and all our articles as well.
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Is Invesco Developing Markets R6 (ODVIX) a Strong Mutual Fund Pick Right Now?
Mutual Fund Equity Report fund seekers should not consider taking a look at Invesco Developing Markets R6 (ODVIX - Free Report) at this time. ODVIX holds a Zacks Mutual Fund Rank of 5 (Strong Sell), which is based on nine forecasting factors like size, cost, and past performance.
History of Fund/Manager
Invesco is based in Kansas City, MO, and is the manager of ODVIX. Invesco Developing Markets R6 debuted in December of 2011. Since then, ODVIX has accumulated assets of about $9.37 billion, according to the most recently available information. Justin Leverenz is the fund's current manager and has held that role since December of 2011.
Performance
Obviously, what investors are looking for in these funds is strong performance relative to their peers. ODVIX has a 5-year annualized total return of -4.08% and is in the bottom third among its category peers. Investors who prefer analyzing shorter time frames should look at its 3-year annualized total return of -8.28%, which places it in the bottom 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. Compared to the category average of 17.13%, the standard deviation of ODVIX over the past three years is 19.55%. Over the past 5 years, the standard deviation of the fund is 17.82% compared to the category average of 15.13%. 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 0.75, so it is likely going to be less volatile than the market at large. 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. ODVIX's 5-year performance has produced a negative alpha of -10.95, which means managers in this portfolio find it difficult to pick securities that generate better-than-benchmark returns.
Expenses
For investors, taking a closer look at cost-related metrics is key, since costs are increasingly important for mutual fund investing. Competition is heating up in this space, and a lower cost product will likely outperform its otherwise identical counterpart, all things being equal. In terms of fees, ODVIX is a no load fund. It has an expense ratio of 0.84% compared to the category average of 1.15%. From a cost perspective, ODVIX is actually cheaper than its peers.
Investors need to be aware that with this product, the minimum initial investment is $1 million; each subsequent investment has no minimum amount.
Bottom Line
Overall, Invesco Developing Markets R6 ( ODVIX ) has a low Zacks Mutual Fund rank, and in conjunction with its comparatively weak performance, average downside risk, and lower fees, Invesco Developing Markets R6 ( ODVIX ) looks like a somewhat weak choice for investors right now.
Want even more information about ODVIX? Then go over to Zacks.com and check out our mutual fund comparison tool, and all of the other great features that we have to help you with your mutual fund analysis for additional information. And don't forget, Zacks has all of your needs covered on the equity side too! Make sure to check out Zacks.com for more information on our screening capabilities, Rank, and all our articles as well.