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Diversified Bonds fund seekers should not consider taking a look at Metropolitan West Total Retail Bond M (MWTRX - Free Report) at this time. MWTRX carries a Zacks Mutual Fund Rank of 5 (Strong Sell), which is based on various forecasting factors like size, cost, and past performance.
Objective
The world of Diversified Bonds funds is an area filled with options, such as MWTRX. Investors looking for exposure to a variety of fixed income types that stretch across issuers, maturities, and credit levels will find a good fit with Diversified Bonds funds. Typically, these funds have a solid amount of exposure to government debt, as well as modest holdings in the corporate bond market.
History of Fund/Manager
MWTRX finds itself in the Metropolitan family, based out of Los Angeles, CA. Metropolitan West Total Retail Bond M debuted in April of 1997. Since then, MWTRX has accumulated assets of about $3.16 billion, according to the most recently available information. The fund is currently managed by a team of investment professionals.
Performance
Investors naturally seek funds with strong performance. This fund carries a 5-year annualized total return of -0.47%, and is in the bottom third among its category peers. If you're interested in shorter time frames, do not dismiss looking at the fund's 3 -year annualized total return of -3.01%, which places it in the bottom third during this time-frame.
It is important to note that the product's returns may not reflect all its expenses. Any fees not reflected would lower the returns. Total returns do not reflect the fund's [%] sale charge. If sales charges were included, total returns would have been lower.
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, MWTRX's standard deviation comes in at 8.7%, compared to the category average of 12.93%. The fund's standard deviation over the past 5 years is 7.19% compared to the category average of 13.45%. This makes the fund less volatile than its peers over the past half-decade.
With a beta of 1.12, this fund is more volatile than a broad market index of fixed income securities. Taking this into account, MWTRX has a positive alpha of 0.13, 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, MWTRX has 71.1% in high quality bonds rated at least 'AA' or higher, while 20.47% 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
For investors, taking a closer look at cost-related metrics is key, since costs are increasingly important for mutual fund investing. Competition is heating up in this space, and a lower cost product will likely outperform its otherwise identical counterpart, all things being equal. In terms of fees, MWTRX is a no load fund. It has an expense ratio of 0.66% compared to the category average of 0.89%. So, MWTRX is actually cheaper than its peers from a cost perspective.
Investors should also note that the minimum initial investment for the product is $5,000 and that each subsequent investment has no minimum amount.
Fees charged by investment advisors have not been taken into considiration. Returns would be less if those were included.
Bottom Line
Overall, even with its comparatively weak performance, better downside risk, and lower fees, Metropolitan West Total Retail Bond M ( MWTRX ) has a low Zacks Mutual Fund rank, and therefore looks a somewhat weak choice for investors right now.
For additional information on the Diversified Bonds 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 MWTRX 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 MWTRX a Strong Bond Fund Right Now?
Diversified Bonds fund seekers should not consider taking a look at Metropolitan West Total Retail Bond M (MWTRX - Free Report) at this time. MWTRX carries a Zacks Mutual Fund Rank of 5 (Strong Sell), which is based on various forecasting factors like size, cost, and past performance.
Objective
The world of Diversified Bonds funds is an area filled with options, such as MWTRX. Investors looking for exposure to a variety of fixed income types that stretch across issuers, maturities, and credit levels will find a good fit with Diversified Bonds funds. Typically, these funds have a solid amount of exposure to government debt, as well as modest holdings in the corporate bond market.
History of Fund/Manager
MWTRX finds itself in the Metropolitan family, based out of Los Angeles, CA. Metropolitan West Total Retail Bond M debuted in April of 1997. Since then, MWTRX has accumulated assets of about $3.16 billion, according to the most recently available information. The fund is currently managed by a team of investment professionals.
Performance
Investors naturally seek funds with strong performance. This fund carries a 5-year annualized total return of -0.47%, and is in the bottom third among its category peers. If you're interested in shorter time frames, do not dismiss looking at the fund's 3 -year annualized total return of -3.01%, which places it in the bottom third during this time-frame.
It is important to note that the product's returns may not reflect all its expenses. Any fees not reflected would lower the returns. Total returns do not reflect the fund's [%] sale charge. If sales charges were included, total returns would have been lower.
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, MWTRX's standard deviation comes in at 8.7%, compared to the category average of 12.93%. The fund's standard deviation over the past 5 years is 7.19% compared to the category average of 13.45%. This makes the fund less volatile than its peers over the past half-decade.
With a beta of 1.12, this fund is more volatile than a broad market index of fixed income securities. Taking this into account, MWTRX has a positive alpha of 0.13, 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, MWTRX has 71.1% in high quality bonds rated at least 'AA' or higher, while 20.47% 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
For investors, taking a closer look at cost-related metrics is key, since costs are increasingly important for mutual fund investing. Competition is heating up in this space, and a lower cost product will likely outperform its otherwise identical counterpart, all things being equal. In terms of fees, MWTRX is a no load fund. It has an expense ratio of 0.66% compared to the category average of 0.89%. So, MWTRX is actually cheaper than its peers from a cost perspective.
Investors should also note that the minimum initial investment for the product is $5,000 and that each subsequent investment has no minimum amount.
Fees charged by investment advisors have not been taken into considiration. Returns would be less if those were included.
Bottom Line
Overall, even with its comparatively weak performance, better downside risk, and lower fees, Metropolitan West Total Retail Bond M ( MWTRX ) has a low Zacks Mutual Fund rank, and therefore looks a somewhat weak choice for investors right now.
For additional information on the Diversified Bonds 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 MWTRX 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.