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There are plenty of choices in the Mutual Fund Bond category, but where should you start your research? Well, one fund that may not be worth investigating is Metropolitan West Total Retail Bond I (MWTIX - Free Report) . MWTIX holds a Zacks Mutual Fund Rank of 4 (Sell), which is based on nine forecasting factors like size, cost, and past performance.
History of Fund/Manager
Metropolitan is based in Los Angeles, CA, and is the manager of MWTIX. Metropolitan West Total Retail Bond I debuted in April of 2000. Since then, MWTIX has accumulated assets of about $37.40 billion, 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 -0.55%, 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 -3.95%, 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. MWTIX's standard deviation over the past three years is 6.07% compared to the category average of 14.09%. Over the past 5 years, the standard deviation of the fund is 5.22% compared to the category average of 12.29%. This makes the fund less volatile than its peers over the past half-decade.
With a beta of 1.06, this fund is more volatile than a broad market index of fixed income securities. Taking this into account, MWTIX has a positive alpha of 0.14, which measures performance on a risk-adjusted basis.
Ratings
Investors should also consider a bond's rating, which is a grade ( 'AAA' to 'D' ) given to a bond that indicates its credit quality. With this letter scale in mind, MWTIX has 64.15% in high quality bonds rated at least 'AA' or higher, while 28.47% are of medium quality, with ratings of 'A' to 'BBB'. The fund has an average quality of AA, and focuses on high quality securities.
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, MWTIX is a no load fund. It has an expense ratio of 0.44% compared to the category average of 0.83%. MWTIX is actually cheaper than its peers when you consider factors like cost.
Investors need to be aware that with this product, the minimum initial investment is $3 million; each subsequent investment needs to be at least $50,000.
Bottom Line
Overall, Metropolitan West Total Retail Bond I ( MWTIX ) has a low Zacks Mutual Fund rank, and in conjunction with its comparatively similar performance, better downside risk, and lower fees, this fund looks like a somewhat weak choice for investors right now.
Want even more information about MWTIX? 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. 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.
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Is MWTIX a Strong Bond Fund Right Now?
There are plenty of choices in the Mutual Fund Bond category, but where should you start your research? Well, one fund that may not be worth investigating is Metropolitan West Total Retail Bond I (MWTIX - Free Report) . MWTIX holds a Zacks Mutual Fund Rank of 4 (Sell), which is based on nine forecasting factors like size, cost, and past performance.
History of Fund/Manager
Metropolitan is based in Los Angeles, CA, and is the manager of MWTIX. Metropolitan West Total Retail Bond I debuted in April of 2000. Since then, MWTIX has accumulated assets of about $37.40 billion, 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 -0.55%, 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 -3.95%, 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. MWTIX's standard deviation over the past three years is 6.07% compared to the category average of 14.09%. Over the past 5 years, the standard deviation of the fund is 5.22% compared to the category average of 12.29%. This makes the fund less volatile than its peers over the past half-decade.
With a beta of 1.06, this fund is more volatile than a broad market index of fixed income securities. Taking this into account, MWTIX has a positive alpha of 0.14, which measures performance on a risk-adjusted basis.
Ratings
Investors should also consider a bond's rating, which is a grade ( 'AAA' to 'D' ) given to a bond that indicates its credit quality. With this letter scale in mind, MWTIX has 64.15% in high quality bonds rated at least 'AA' or higher, while 28.47% are of medium quality, with ratings of 'A' to 'BBB'. The fund has an average quality of AA, and focuses on high quality securities.
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, MWTIX is a no load fund. It has an expense ratio of 0.44% compared to the category average of 0.83%. MWTIX is actually cheaper than its peers when you consider factors like cost.
Investors need to be aware that with this product, the minimum initial investment is $3 million; each subsequent investment needs to be at least $50,000.
Bottom Line
Overall, Metropolitan West Total Retail Bond I ( MWTIX ) has a low Zacks Mutual Fund rank, and in conjunction with its comparatively similar performance, better downside risk, and lower fees, this fund looks like a somewhat weak choice for investors right now.
Want even more information about MWTIX? 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. 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.