Having trouble finding a Global - Equity fund? Motley Fool Independence Fund (
FOOLX Quick Quote FOOLX - Free Report) is a potential starting point. FOOLX bears a Zacks Mutual Fund Rank of 2 (Buy), which is based on nine forecasting factors like size, cost, and past performance. Objective
We note that FOOLX is a Global - Equity option, an investment area loaded with different options. While Global - Equity mutual funds invest their assets in large markets--think the U.S., Europe, and Japan--they aren't limited by geography. Their investment technique is one that leverages the global economy in order to offer stable returns.
History of Fund/Manager
Motley Fool is based in Providence, RI, and is the manager of FOOLX. Motley Fool Independence Fund debuted in August of 2009. Since then, FOOLX has accumulated assets of about $488.11 million, according to the most recently available information. The fund's current manager is a team of investment professionals.
Investors naturally seek funds with strong performance. FOOLX has a 5-year annualized total return of 19.52% and it sits in the top third among its category peers. Investors who prefer analyzing shorter time frames should look at its 3-year annualized total return of 19.89%, 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. Compared to the category average of 16.79%, the standard deviation of FOOLX over the past three years is 19.94%. Looking at the past 5 years, the fund's standard deviation is 16.52% compared to the category average of 13.79%. This makes the fund more volatile than its peers over the past half-decade.
Investors should not forget about beta, an important way to measure a mutual fund's risk compared to the market as a whole. FOOLX has a 5-year beta of 0.96, 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. FOOLX has generated a positive alpha over the past five years of 2.67, demonstrating that managers in this portfolio are skilled in picking securities that generate better-than-benchmark returns.
Costs are increasingly important for mutual fund investing, and particularly as competition heats up in this market. And all things being equal, a lower cost product will outperform its otherwise identical counterpart, so taking a closer look at these metrics is key for investors. In terms of fees, FOOLX is a no load fund. It has an expense ratio of 1.08% compared to the category average of 1.13%. Looking at the fund from a cost perspective, FOOLX is actually cheaper than its peers.
Investors need to be aware that with this product, the minimum initial investment is $500; each subsequent investment needs to be at least $50.
Overall, Motley Fool Independence Fund ( FOOLX ) has a high Zacks Mutual Fund rank, and in conjunction with its comparatively strong performance, average downside risk, and lower fees, this fund looks like a good potential choice for investors right now.
For additional information on this product, or to compare it to other mutual funds in the Global - Equity, make sure to go to
www.zacks.com/funds/mutual-funds for additional information. Want to learn even more? We have a full suite of tools on stocks that you can use to find the best choices for your portfolio too, no matter what kind of investor you are.