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Is DFA Continental Small Company I (DFCSX) a Strong Mutual Fund Pick Right Now?
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If investors are looking at the Europe - Equity fund category, make sure to pass over DFA Continental Small Company I (DFCSX - Free Report) . DFCSX holds a Zacks Mutual Fund Rank of 4 (Sell), which is based on nine forecasting factors like size, cost, and past performance.
Objective
DFCSX is part of the Europe - Equity section, a segment that boasts an array of many different selections. Europe - Equity mutual funds are known for investing their assets in stocks based in countries like Great Britain, Germany, France, Italy, and Spain; these funds provide slow growth that can offer great levels of stability.
History of Fund/Manager
Dimensional is responsible for DFCSX, and the company is based out of Austin, TX. DFA Continental Small Company I debuted in April of 1988. Since then, DFCSX has accumulated assets of about $645.65 million, according to the most recently available information. The fund's current manager is a team of investment professionals.
Performance
Of course, investors look for strong performance in funds. This fund has delivered a 5-year annualized total return of 4.63%, 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 10.91%, 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 DFCSX over the past three years is 14.53% compared to the category average of 12.85%. The fund's standard deviation over the past 5 years is 14.36% compared to the category average of 12.81%. 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. DFCSX lost 61.77% in the most recent bear market and underperformed comparable funds by 3.64%. These results could imply that the fund is a worse choice than its peers during a sliding market environment.
Investors should not forget about beta, an important way to measure a mutual fund's risk compared to the market as a whole. DFCSX has a 5-year beta of 0.87, which means it is likely to be less volatile than the market average. 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. DFCSX's 5-year performance has produced a negative alpha of -4.03, 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, DFCSX is a no load fund. It has an expense ratio of 0.54% compared to the category average of 1.32%. From a cost perspective, DFCSX is actually cheaper than its peers.
This fund requires a minimum initial investment of $0, while there is no minimum for each subsequent investment.
Bottom Line
Overall, DFA Continental Small Company I ( DFCSX ) has a low Zacks Mutual Fund rank, strong performance, average downside risk, and lower fees compared to its peers.
Don't stop here for your research on Europe - Equity 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 DFCSX to its peers 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 DFA Continental Small Company I (DFCSX) a Strong Mutual Fund Pick Right Now?
If investors are looking at the Europe - Equity fund category, make sure to pass over DFA Continental Small Company I (DFCSX - Free Report) . DFCSX holds a Zacks Mutual Fund Rank of 4 (Sell), which is based on nine forecasting factors like size, cost, and past performance.
Objective
DFCSX is part of the Europe - Equity section, a segment that boasts an array of many different selections. Europe - Equity mutual funds are known for investing their assets in stocks based in countries like Great Britain, Germany, France, Italy, and Spain; these funds provide slow growth that can offer great levels of stability.
History of Fund/Manager
Dimensional is responsible for DFCSX, and the company is based out of Austin, TX. DFA Continental Small Company I debuted in April of 1988. Since then, DFCSX has accumulated assets of about $645.65 million, according to the most recently available information. The fund's current manager is a team of investment professionals.
Performance
Of course, investors look for strong performance in funds. This fund has delivered a 5-year annualized total return of 4.63%, 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 10.91%, 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 DFCSX over the past three years is 14.53% compared to the category average of 12.85%. The fund's standard deviation over the past 5 years is 14.36% compared to the category average of 12.81%. 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. DFCSX lost 61.77% in the most recent bear market and underperformed comparable funds by 3.64%. These results could imply that the fund is a worse choice than its peers during a sliding market environment.
Investors should not forget about beta, an important way to measure a mutual fund's risk compared to the market as a whole. DFCSX has a 5-year beta of 0.87, which means it is likely to be less volatile than the market average. 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. DFCSX's 5-year performance has produced a negative alpha of -4.03, 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, DFCSX is a no load fund. It has an expense ratio of 0.54% compared to the category average of 1.32%. From a cost perspective, DFCSX is actually cheaper than its peers.
This fund requires a minimum initial investment of $0, while there is no minimum for each subsequent investment.
Bottom Line
Overall, DFA Continental Small Company I ( DFCSX ) has a low Zacks Mutual Fund rank, strong performance, average downside risk, and lower fees compared to its peers.
Don't stop here for your research on Europe - Equity 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 DFCSX to its peers 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.