Back to top

Image: Bigstock

Is Spirit of America Energy A (SOAEX) a Strong Mutual Fund Pick Right Now?

Read MoreHide Full Article

On the lookout for a Mutual Fund Equity Report fund? Starting with Spirit of America Energy A (SOAEX - Free Report) should not be a possibility at this time. SOAEX holds 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

Spirit of America is based in Syosset, NY, and is the manager of SOAEX. Spirit of America Energy A debuted in July of 2014. Since then, SOAEX has accumulated assets of about $225.70 million, according to the most recently available information. Douglas Revello is the fund's current manager and has held that role since January of 2020.

Performance

Of course, investors look for strong performance in funds. This fund in particular has delivered a 5-year annualized total return of 2.38%, and it sits 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 23.26%, which places it in the middle 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, SOAEX's standard deviation comes in at 22.77%, compared to the category average of 31.13%. Over the past 5 years, the standard deviation of the fund is 31.17% compared to the category average of 40.51%. This makes the fund less volatile than its peers over the past half-decade.

Risk Factors

Investors should note that the fund has a 5-year beta of 1.2, so it is likely going to be more volatile than the market at large. 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. With a negative alpha of -6.91, 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, SOAEX is a load fund. It has an expense ratio of 1.50% compared to the category average of 1.52%. So, SOAEX is actually cheaper than its peers from a cost perspective.

This fund requires a minimum initial investment of $500, and each subsequent investment should be at least $50.

Bottom Line

Overall, Spirit of America Energy A ( SOAEX ) has a low Zacks Mutual Fund rank, and in conjunction with its comparatively weak performance, better downside risk, and lower fees, Spirit of America Energy A ( SOAEX ) looks like a somewhat weak choice for investors right now.

Don't stop here for your research on Mutual Fund Equity Report funds. We also have plenty more on our site in order to help you find the best possible fund for your portfolio. Make sure to check out www.zacks.com/funds/mutual-funds for more information about the world of funds, and feel free to compare SOAEX to its peers as well 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.


See More Zacks Research for These Tickers


Normally $25 each - click below to receive one report FREE:


Spirit of America Energy A (SOAEX) - free report >>

Published in