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Is Wells Fargo Growth Fund A (SGRAX) a Strong Mutual Fund Pick Right Now?
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Having trouble finding a Mutual Fund Equity Report fund? Well, Wells Fargo Growth Fund A (SGRAX - Free Report) would not be a good potential starting point right now. SGRAX has 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
Allspring is responsible for SGRAX, and the company is based out of San Francisco, CA. Since Wells Fargo Growth Fund A made its debut in December of 1993, SGRAX has garnered more than $1.65 billion in assets. The fund is currently managed by Thomas Ognar who has been in charge of the fund since May of 2002.
Performance
Of course, investors look for strong performance in funds. SGRAX has a 5-year annualized total return of 6.76% 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 1.82%, 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. SGRAX's standard deviation over the past three years is 26.89% compared to the category average of 18.74%. The fund's standard deviation over the past 5 years is 23.33% compared to the category average of 16.31%. This makes the fund more volatile than its peers over the past half-decade.
Risk Factors
With a 5-year beta of 1.12, the fund is likely to be more volatile than the market average. 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. The fund has produced a negative alpha over the past 5 years of -2.77, which shows that managers in this portfolio find it difficult to pick securities that generate better-than-benchmark returns.
Holdings
Exploring the equity holdings of a mutual fund is also a valuable exercise. This can show us how the manager is applying their stated methodology, as well as if there are any inherent biases in their approach. For this particular fund, the focus is mostly on equities that are traded in the United States.
This fund is currently holding about 90.94% stock in stocks, with an average market capitalization of $265.88 billion. The fund has the heaviest exposure to the following market sectors:
Technology
Retail Trade
Finance
This fund's turnover is about 53.62%, so the fund managers are making fewer trades than its comparable peers.
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, SGRAX is a load fund. It has an expense ratio of 1.17% compared to the category average of 0.99%. Looking at the fund from a cost perspective, SGRAX 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, Wells Fargo Growth Fund A ( SGRAX ) has a low Zacks Mutual Fund rank, and in conjunction with its comparatively weak performance, worse downside risk, and higher fees, this fund looks like a somewhat weak choice for investors right now.
Your research on the Mutual Fund Equity Report segment doesn't have to stop here. You can check out all the great mutual fund tools we have to offer by going to www.zacks.com/funds/mutual-funds to see the additional features we offer 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 Wells Fargo Growth Fund A (SGRAX) a Strong Mutual Fund Pick Right Now?
Having trouble finding a Mutual Fund Equity Report fund? Well, Wells Fargo Growth Fund A (SGRAX - Free Report) would not be a good potential starting point right now. SGRAX has 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
Allspring is responsible for SGRAX, and the company is based out of San Francisco, CA. Since Wells Fargo Growth Fund A made its debut in December of 1993, SGRAX has garnered more than $1.65 billion in assets. The fund is currently managed by Thomas Ognar who has been in charge of the fund since May of 2002.
Performance
Of course, investors look for strong performance in funds. SGRAX has a 5-year annualized total return of 6.76% 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 1.82%, 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. SGRAX's standard deviation over the past three years is 26.89% compared to the category average of 18.74%. The fund's standard deviation over the past 5 years is 23.33% compared to the category average of 16.31%. This makes the fund more volatile than its peers over the past half-decade.
Risk Factors
With a 5-year beta of 1.12, the fund is likely to be more volatile than the market average. 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. The fund has produced a negative alpha over the past 5 years of -2.77, which shows that managers in this portfolio find it difficult to pick securities that generate better-than-benchmark returns.
Holdings
Exploring the equity holdings of a mutual fund is also a valuable exercise. This can show us how the manager is applying their stated methodology, as well as if there are any inherent biases in their approach. For this particular fund, the focus is mostly on equities that are traded in the United States.
This fund is currently holding about 90.94% stock in stocks, with an average market capitalization of $265.88 billion. The fund has the heaviest exposure to the following market sectors:
- Technology
- Retail Trade
- Finance
This fund's turnover is about 53.62%, so the fund managers are making fewer trades than its comparable peers.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, SGRAX is a load fund. It has an expense ratio of 1.17% compared to the category average of 0.99%. Looking at the fund from a cost perspective, SGRAX 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, Wells Fargo Growth Fund A ( SGRAX ) has a low Zacks Mutual Fund rank, and in conjunction with its comparatively weak performance, worse downside risk, and higher fees, this fund looks like a somewhat weak choice for investors right now.
Your research on the Mutual Fund Equity Report segment doesn't have to stop here. You can check out all the great mutual fund tools we have to offer by going to www.zacks.com/funds/mutual-funds to see the additional features we offer 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.