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Is Oppenheimer SteelPath MLP Income A (MLPDX) a Strong Mutual Fund Pick Right Now?
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On the lookout for a Sector - Energy fund? Starting with Oppenheimer SteelPath MLP Income A (MLPDX - Free Report) should not be a possibility at this time. MLPDX has a Zacks Mutual Fund Rank of 5 (Strong Sell), which is based on nine forecasting factors like size, cost, and past performance.
Objective
Zacks categorizes MLPDX as Sector - Energy, a segment packed with options. Sector - Energy mutual funds encompass a wide range of vastly changing and vitally important industries throughout this massive global sector. Oil and gas comprise the bulk of the exposure here, and carbon-based fuels are going to be the majority of assets in these funds. However, clean energy is starting to pick up steam.
History of Fund/Manager
Oppenheimer is based in Denver, CO, and is the manager of MLPDX. The Oppenheimer SteelPath MLP Income A made its debut in April of 2010 and MLPDX has managed to accumulate roughly $1.31 billion in assets, as of the most recently available information. The fund is currently managed by Stuart Cartner who has been in charge of the fund since April of 2010.
Performance
Investors naturally seek funds with strong performance. MLPDX has a 5-year annualized total return of -4.21% 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 -1.08%, which places it in the middle 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 11.48%, the standard deviation of MLPDX over the past three years is 20.87%. The standard deviation of the fund over the past 5 years is 18.4% compared to the category average of 11.58%. This makes the fund more volatile than its peers over the past half-decade.
Risk Factors
It's always important to be aware of the downsides to any future investment, so one should not discount the risks that come with this segment.
Investors should not forget about beta, an important way to measure a mutual fund's risk compared to the market as a whole. MLPDX has a 5-year beta of 1.08, which means it is likely to be more volatile than 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. The fund has produced a negative alpha over the past 5 years of -13.59, 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, MLPDX is a load fund. It has an expense ratio of 1.39% compared to the category average of 1.48%. MLPDX 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 has no minimum amount.
Bottom Line
Overall, Oppenheimer SteelPath MLP Income A ( MLPDX ) has a low Zacks Mutual Fund rank, and in conjunction with its comparatively strong performance, worse downside risk, and lower fees, Oppenheimer SteelPath MLP Income A ( MLPDX ) looks like a somewhat weak choice for investors right now.
Don't stop here for your research on Sector - Energy funds. We also have plenty more on our site in order to help you find the best possible fund for your portfolio. Make sure to check out www.zacks.com/funds/mutual-funds for more information about the world of funds, and feel free to compare MLPDX to its peers as well for additional information. If you are more of a stock investor, make sure to also check out our Zacks Rank, and our full suite of tools we have available for novice and professional investors alike.
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Is Oppenheimer SteelPath MLP Income A (MLPDX) a Strong Mutual Fund Pick Right Now?
On the lookout for a Sector - Energy fund? Starting with Oppenheimer SteelPath MLP Income A (MLPDX - Free Report) should not be a possibility at this time. MLPDX has a Zacks Mutual Fund Rank of 5 (Strong Sell), which is based on nine forecasting factors like size, cost, and past performance.
Objective
Zacks categorizes MLPDX as Sector - Energy, a segment packed with options. Sector - Energy mutual funds encompass a wide range of vastly changing and vitally important industries throughout this massive global sector. Oil and gas comprise the bulk of the exposure here, and carbon-based fuels are going to be the majority of assets in these funds. However, clean energy is starting to pick up steam.
History of Fund/Manager
Oppenheimer is based in Denver, CO, and is the manager of MLPDX. The Oppenheimer SteelPath MLP Income A made its debut in April of 2010 and MLPDX has managed to accumulate roughly $1.31 billion in assets, as of the most recently available information. The fund is currently managed by Stuart Cartner who has been in charge of the fund since April of 2010.
Performance
Investors naturally seek funds with strong performance. MLPDX has a 5-year annualized total return of -4.21% 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 -1.08%, which places it in the middle 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 11.48%, the standard deviation of MLPDX over the past three years is 20.87%. The standard deviation of the fund over the past 5 years is 18.4% compared to the category average of 11.58%. This makes the fund more volatile than its peers over the past half-decade.
Risk Factors
It's always important to be aware of the downsides to any future investment, so one should not discount the risks that come with this segment.
Investors should not forget about beta, an important way to measure a mutual fund's risk compared to the market as a whole. MLPDX has a 5-year beta of 1.08, which means it is likely to be more volatile than 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. The fund has produced a negative alpha over the past 5 years of -13.59, 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, MLPDX is a load fund. It has an expense ratio of 1.39% compared to the category average of 1.48%. MLPDX 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 has no minimum amount.
Bottom Line
Overall, Oppenheimer SteelPath MLP Income A ( MLPDX ) has a low Zacks Mutual Fund rank, and in conjunction with its comparatively strong performance, worse downside risk, and lower fees, Oppenheimer SteelPath MLP Income A ( MLPDX ) looks like a somewhat weak choice for investors right now.
Don't stop here for your research on Sector - Energy funds. We also have plenty more on our site in order to help you find the best possible fund for your portfolio. Make sure to check out www.zacks.com/funds/mutual-funds for more information about the world of funds, and feel free to compare MLPDX to its peers as well for additional information. If you are more of a stock investor, make sure to also check out our Zacks Rank, and our full suite of tools we have available for novice and professional investors alike.