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Is Invesco Developing Markets R6 (ODVIX) a Strong Mutual Fund Pick Right Now?
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If investors are looking at the Mutual Fund Equity Report fund category, make sure to pass over Invesco Developing Markets R6 (ODVIX - Free Report) . ODVIX holds a Zacks Mutual Fund Rank of 4 (Sell), which is based on various forecasting factors like size, cost, and past performance.
History of Fund/Manager
Invesco is responsible for ODVIX, and the company is based out of Kansas City, MO. The Invesco Developing Markets R6 made its debut in December of 2011 and ODVIX has managed to accumulate roughly $10.28 billion in assets, as of the most recently available information. The fund is currently managed by Justin Leverenz who has been in charge of the fund since December of 2011.
Performance
Investors naturally seek funds with strong performance. This fund has delivered a 5-year annualized total return of -0.14%, and it sits in the bottom third among its category peers. But if you are looking for a shorter time frame, it is also worth looking at its 3-year annualized total return of 3.29%, 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. Over the past three years, ODVIX's standard deviation comes in at 20.31%, compared to the category average of 16.01%. The fund's standard deviation over the past 5 years is 19.8% compared to the category average of 15.92%. This makes the fund more volatile than its peers over the past half-decade.
Risk Factors
Investors should note that the fund has a 5-year beta of 0.79, so it is likely going to be less volatile than the market at large. Because alpha represents a portfolio's performance on a risk-adjusted basis relative to a benchmark, which is the S&P 500 in this case, one should pay attention to this metric as well. ODVIX's 5-year performance has produced a negative alpha of -8.16, which means managers in this portfolio find it difficult to pick securities that generate better-than-benchmark returns.
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, ODVIX is a no load fund. It has an expense ratio of 0.84% compared to the category average of 1.13%. Looking at the fund from a cost perspective, ODVIX is actually cheaper than its peers.
Investors need to be aware that with this product, the minimum initial investment is $1 million; each subsequent investment has no minimum amount.
Bottom Line
Overall, Invesco Developing Markets R6 ( ODVIX ) has a low Zacks Mutual Fund rank, and in conjunction with its comparatively weak performance, average downside risk, and lower 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. 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 Invesco Developing Markets R6 (ODVIX) a Strong Mutual Fund Pick Right Now?
If investors are looking at the Mutual Fund Equity Report fund category, make sure to pass over Invesco Developing Markets R6 (ODVIX - Free Report) . ODVIX holds a Zacks Mutual Fund Rank of 4 (Sell), which is based on various forecasting factors like size, cost, and past performance.
History of Fund/Manager
Invesco is responsible for ODVIX, and the company is based out of Kansas City, MO. The Invesco Developing Markets R6 made its debut in December of 2011 and ODVIX has managed to accumulate roughly $10.28 billion in assets, as of the most recently available information. The fund is currently managed by Justin Leverenz who has been in charge of the fund since December of 2011.
Performance
Investors naturally seek funds with strong performance. This fund has delivered a 5-year annualized total return of -0.14%, and it sits in the bottom third among its category peers. But if you are looking for a shorter time frame, it is also worth looking at its 3-year annualized total return of 3.29%, 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. Over the past three years, ODVIX's standard deviation comes in at 20.31%, compared to the category average of 16.01%. The fund's standard deviation over the past 5 years is 19.8% compared to the category average of 15.92%. This makes the fund more volatile than its peers over the past half-decade.
Risk Factors
Investors should note that the fund has a 5-year beta of 0.79, so it is likely going to be less volatile than the market at large. Because alpha represents a portfolio's performance on a risk-adjusted basis relative to a benchmark, which is the S&P 500 in this case, one should pay attention to this metric as well. ODVIX's 5-year performance has produced a negative alpha of -8.16, which means managers in this portfolio find it difficult to pick securities that generate better-than-benchmark returns.
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, ODVIX is a no load fund. It has an expense ratio of 0.84% compared to the category average of 1.13%. Looking at the fund from a cost perspective, ODVIX is actually cheaper than its peers.
Investors need to be aware that with this product, the minimum initial investment is $1 million; each subsequent investment has no minimum amount.
Bottom Line
Overall, Invesco Developing Markets R6 ( ODVIX ) has a low Zacks Mutual Fund rank, and in conjunction with its comparatively weak performance, average downside risk, and lower 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. 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.