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Is Van Eck Emerging Markets A (GBFAX) a Strong Mutual Fund Pick Right Now?
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On the lookout for a Mutual Fund Equity Report fund? Starting with Van Eck Emerging Markets A (GBFAX - Free Report) should not be a possibility at this time. GBFAX carries a Zacks Mutual Fund Rank of 5 (Strong Sell), which is based on various forecasting factors like size, cost, and past performance.
History of Fund/Manager
Van Eck is based in New York, NY, and is the manager of GBFAX. Since Van Eck Emerging Markets A made its debut in January of 1994, GBFAX has garnered more than $60.55 million in assets. The fund is currently managed by David A. Semple who has been in charge of the fund since October of 2003.
Performance
Investors naturally seek funds with strong performance. This fund carries a 5-year annualized total return of -5.34%, 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 -8.54%, 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. Compared to the category average of 18.02%, the standard deviation of GBFAX over the past three years is 23.22%. The standard deviation of the fund over the past 5 years is 20.95% compared to the category average of 15.79%. This makes the fund more volatile than its peers over the past half-decade.
Risk Factors
The fund has a 5-year beta of 0.83, so investors should note that it is hypothetically less 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. Over the past 5 years, the fund has a negative alpha of -11.71. This means that managers in this portfolio find it difficult to pick securities that generate better-than-benchmark returns.
Expenses
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, GBFAX is a load fund. It has an expense ratio of 1.52% compared to the category average of 1.15%. Looking at the fund from a cost perspective, GBFAX is actually more expensive than its peers.
Investors should also note that the minimum initial investment for the product is $1,000 and that each subsequent investment needs to be at $100.
Bottom Line
Overall, Van Eck Emerging Markets A ( GBFAX ) has a low Zacks Mutual Fund rank, and in conjunction with its comparatively weak performance, worse downside risk, and higher fees, Van Eck Emerging Markets A ( GBFAX ) looks like a somewhat weak choice for investors right now.
For additional information on the Mutual Fund Equity Report area of the mutual fund world, make sure to check out www.zacks.com/funds/mutual-funds. There, you can see more about the ranking process, and dive even deeper into GBFAX too 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 Van Eck Emerging Markets A (GBFAX) a Strong Mutual Fund Pick Right Now?
On the lookout for a Mutual Fund Equity Report fund? Starting with Van Eck Emerging Markets A (GBFAX - Free Report) should not be a possibility at this time. GBFAX carries a Zacks Mutual Fund Rank of 5 (Strong Sell), which is based on various forecasting factors like size, cost, and past performance.
History of Fund/Manager
Van Eck is based in New York, NY, and is the manager of GBFAX. Since Van Eck Emerging Markets A made its debut in January of 1994, GBFAX has garnered more than $60.55 million in assets. The fund is currently managed by David A. Semple who has been in charge of the fund since October of 2003.
Performance
Investors naturally seek funds with strong performance. This fund carries a 5-year annualized total return of -5.34%, 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 -8.54%, 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. Compared to the category average of 18.02%, the standard deviation of GBFAX over the past three years is 23.22%. The standard deviation of the fund over the past 5 years is 20.95% compared to the category average of 15.79%. This makes the fund more volatile than its peers over the past half-decade.
Risk Factors
The fund has a 5-year beta of 0.83, so investors should note that it is hypothetically less 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. Over the past 5 years, the fund has a negative alpha of -11.71. This means that managers in this portfolio find it difficult to pick securities that generate better-than-benchmark returns.
Expenses
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, GBFAX is a load fund. It has an expense ratio of 1.52% compared to the category average of 1.15%. Looking at the fund from a cost perspective, GBFAX is actually more expensive than its peers.
Investors should also note that the minimum initial investment for the product is $1,000 and that each subsequent investment needs to be at $100.
Bottom Line
Overall, Van Eck Emerging Markets A ( GBFAX ) has a low Zacks Mutual Fund rank, and in conjunction with its comparatively weak performance, worse downside risk, and higher fees, Van Eck Emerging Markets A ( GBFAX ) looks like a somewhat weak choice for investors right now.
For additional information on the Mutual Fund Equity Report area of the mutual fund world, make sure to check out www.zacks.com/funds/mutual-funds. There, you can see more about the ranking process, and dive even deeper into GBFAX too 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.