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If you have been looking for Diversified Bonds funds, it would not be wise to start your search with Metropolitan West Total Retail Bond I (MWTIX - Free Report) . MWTIX bears a Zacks Mutual Fund Rank of 5 (Strong Sell), which is based on various forecasting factors like size, cost, and past performance.
Objective
MWTIX is one of many Diversified Bonds funds to choose from. Diversified Bonds funds give investors exposure to a variety of fixed income types that span across different issuers, maturities, and credit levels. Usually, these funds will have a good amount of exposure to government debt, in addition to modest holdings in the corporate bond market.
History of Fund/Manager
Metropolitan is responsible for MWTIX, and the company is based out of Los Angeles, CA. Since Metropolitan West Total Retail Bond I made its debut in April of 2000, MWTIX has garnered more than $24.52 billion in assets. The fund is currently managed by a team of investment professionals.
Performance
Obviously, what investors are looking for in these funds is strong performance relative to their peers. This fund has delivered a 5-year annualized total return of 0%, 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 -2.46%, 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, MWTIX's standard deviation comes in at 8.67%, compared to the category average of 12.89%. The standard deviation of the fund over the past 5 years is 7.15% compared to the category average of 13.52%. This makes the fund less volatile than its peers over the past half-decade.
MWTIX carries a beta of 1.12, meaning that the fund is more volatile than a broad market index of fixed income securities. With this in mind, it has a positive alpha of 0.34, 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, MWTIX 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
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, MWTIX is a no load fund. It has an expense ratio of 0.45% compared to the category average of 0.89%. Looking at the fund from a cost perspective, MWTIX is actually cheaper than its peers.
Investors should also note that the minimum initial investment for the product is $3 million and that each subsequent investment needs to be at $50,000
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 I ( MWTIX ) has a low Zacks Mutual Fund rank, and therefore looks a somewhat weak choice for investors right now.
For additional information on this product, or to compare it to other mutual funds in the Diversified Bonds, make sure to go to www.zacks.com/funds/mutual-funds for additional information. If you want to check out our stock reports as well, make sure to go to Zacks.com to see all of the great tools we have to offer, including our time-tested Zacks Rank.
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Is MWTIX a Strong Bond Fund Right Now?
If you have been looking for Diversified Bonds funds, it would not be wise to start your search with Metropolitan West Total Retail Bond I (MWTIX - Free Report) . MWTIX bears a Zacks Mutual Fund Rank of 5 (Strong Sell), which is based on various forecasting factors like size, cost, and past performance.
Objective
MWTIX is one of many Diversified Bonds funds to choose from. Diversified Bonds funds give investors exposure to a variety of fixed income types that span across different issuers, maturities, and credit levels. Usually, these funds will have a good amount of exposure to government debt, in addition to modest holdings in the corporate bond market.
History of Fund/Manager
Metropolitan is responsible for MWTIX, and the company is based out of Los Angeles, CA. Since Metropolitan West Total Retail Bond I made its debut in April of 2000, MWTIX has garnered more than $24.52 billion in assets. The fund is currently managed by a team of investment professionals.
Performance
Obviously, what investors are looking for in these funds is strong performance relative to their peers. This fund has delivered a 5-year annualized total return of 0%, 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 -2.46%, 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, MWTIX's standard deviation comes in at 8.67%, compared to the category average of 12.89%. The standard deviation of the fund over the past 5 years is 7.15% compared to the category average of 13.52%. This makes the fund less volatile than its peers over the past half-decade.
MWTIX carries a beta of 1.12, meaning that the fund is more volatile than a broad market index of fixed income securities. With this in mind, it has a positive alpha of 0.34, 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, MWTIX 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
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, MWTIX is a no load fund. It has an expense ratio of 0.45% compared to the category average of 0.89%. Looking at the fund from a cost perspective, MWTIX is actually cheaper than its peers.
Investors should also note that the minimum initial investment for the product is $3 million and that each subsequent investment needs to be at $50,000
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 I ( MWTIX ) has a low Zacks Mutual Fund rank, and therefore looks a somewhat weak choice for investors right now.
For additional information on this product, or to compare it to other mutual funds in the Diversified Bonds, make sure to go to www.zacks.com/funds/mutual-funds for additional information. If you want to check out our stock reports as well, make sure to go to Zacks.com to see all of the great tools we have to offer, including our time-tested Zacks Rank.