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Is Wells Fargo Premier Large Company Growth R6 (EKJFX) a Strong Mutual Fund Pick Right Now?
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Mutual Fund Equity Report fund seekers should not consider taking a look at Wells Fargo Premier Large Company Growth R6 (EKJFX - Free Report) at this time. EKJFX has a Zacks Mutual Fund Rank of 4 (Sell), which is based on various forecasting factors like size, cost, and past performance.
History of Fund/Manager
EKJFX is a part of the Allspring family of funds, a company based out of San Francisco, CA. Wells Fargo Premier Large Company Growth R6 debuted in December of 2012. Since then, EKJFX has accumulated assets of about $745.82 million, according to the most recently available information. Thomas Ognar is the fund's current manager and has held that role since December of 2012.
Performance
Investors naturally seek funds with strong performance. This fund carries a 5-year annualized total return of 7.34%, and is in the bottom 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 3.32%, 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. The standard deviation of EKJFX over the past three years is 25.29% compared to the category average of 18.23%. Over the past 5 years, the standard deviation of the fund is 21.89% compared to the category average of 15.98%. This makes the fund more volatile than its peers over the past half-decade.
Risk Factors
The fund has a 5-year beta of 1.08, so investors should note that it is hypothetically more volatile than the market at large. 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. EKJFX's 5-year performance has produced a negative alpha of -2.13, which means managers in this portfolio find it difficult to pick securities that generate better-than-benchmark returns.
Holdings
Exploring the equity holdings of a mutual fund is also a valuable exercise. This can show us how the manager is applying their stated methodology, as well as if there are any inherent biases in their approach. For this particular fund, the focus is mostly on equities that are traded in the United States.
Currently, this mutual fund is holding 95% stock in stocks, with an average market capitalization of $296.35 billion. The fund has the heaviest exposure to the following market sectors:
Technology
Retail Trade
Finance
Turnover is about 54.85%, so those in charge of the fund make fewer trades than the average comparable fund.
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, EKJFX is a no load fund. It has an expense ratio of 0.70% compared to the category average of 0.99%. Looking at the fund from a cost perspective, EKJFX is actually cheaper than its peers.
Investors should also note that the minimum initial investment for the product is $0 and that each subsequent investment has no minimum amount.
Bottom Line
Overall, Wells Fargo Premier Large Company Growth R6 ( EKJFX ) has a low Zacks Mutual Fund rank, and in conjunction with its comparatively weak performance, worse downside risk, and lower fees, Wells Fargo Premier Large Company Growth R6 ( EKJFX ) looks like a somewhat weak choice for investors right now.
Want even more information about EKJFX? 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 Wells Fargo Premier Large Company Growth R6 (EKJFX) a Strong Mutual Fund Pick Right Now?
Mutual Fund Equity Report fund seekers should not consider taking a look at Wells Fargo Premier Large Company Growth R6 (EKJFX - Free Report) at this time. EKJFX has a Zacks Mutual Fund Rank of 4 (Sell), which is based on various forecasting factors like size, cost, and past performance.
History of Fund/Manager
EKJFX is a part of the Allspring family of funds, a company based out of San Francisco, CA. Wells Fargo Premier Large Company Growth R6 debuted in December of 2012. Since then, EKJFX has accumulated assets of about $745.82 million, according to the most recently available information. Thomas Ognar is the fund's current manager and has held that role since December of 2012.
Performance
Investors naturally seek funds with strong performance. This fund carries a 5-year annualized total return of 7.34%, and is in the bottom 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 3.32%, 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. The standard deviation of EKJFX over the past three years is 25.29% compared to the category average of 18.23%. Over the past 5 years, the standard deviation of the fund is 21.89% compared to the category average of 15.98%. This makes the fund more volatile than its peers over the past half-decade.
Risk Factors
The fund has a 5-year beta of 1.08, so investors should note that it is hypothetically more volatile than the market at large. 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. EKJFX's 5-year performance has produced a negative alpha of -2.13, which means managers in this portfolio find it difficult to pick securities that generate better-than-benchmark returns.
Holdings
Exploring the equity holdings of a mutual fund is also a valuable exercise. This can show us how the manager is applying their stated methodology, as well as if there are any inherent biases in their approach. For this particular fund, the focus is mostly on equities that are traded in the United States.
Currently, this mutual fund is holding 95% stock in stocks, with an average market capitalization of $296.35 billion. The fund has the heaviest exposure to the following market sectors:
- Technology
- Retail Trade
- Finance
Turnover is about 54.85%, so those in charge of the fund make fewer trades than the average comparable fund.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, EKJFX is a no load fund. It has an expense ratio of 0.70% compared to the category average of 0.99%. Looking at the fund from a cost perspective, EKJFX is actually cheaper than its peers.
Investors should also note that the minimum initial investment for the product is $0 and that each subsequent investment has no minimum amount.
Bottom Line
Overall, Wells Fargo Premier Large Company Growth R6 ( EKJFX ) has a low Zacks Mutual Fund rank, and in conjunction with its comparatively weak performance, worse downside risk, and lower fees, Wells Fargo Premier Large Company Growth R6 ( EKJFX ) looks like a somewhat weak choice for investors right now.
Want even more information about EKJFX? 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.