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Is ProFunds UltraEmerging Markets Investor (UUPIX) a Strong Mutual Fund Pick Right Now?

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There are plenty of choices in the Non US - Equity category, but where should you start your research? Well, one fund that may not be worth investigating is ProFunds UltraEmerging Markets Investor (UUPIX - Free Report) . UUPIX has a Zacks Mutual Fund Rank of 4 (Sell), which is based on various forecasting factors like size, cost, and past performance.

Objective

Zacks categorizes UUPIX as Non US - Equity, a segment stacked high with options. Non US - Equity mutual funds like to invest in companies outside of the United States, an important characteristic since global mutual funds are known to keep a good portion of their portfolio stateside. These kinds of funds can often extend across all cap levels, and will typically allocate their investments between emerging and developed markets.

History of Fund/Manager

UUPIX is a part of the ProFunds family of funds, a company based out of Columbus, OH. Since ProFunds UltraEmerging Markets Investor made its debut in April of 2006, UUPIX has garnered more than $9.99 million in assets. The fund's current manager, Alexander Ilyasov, has been in charge of the fund since August of 2020.

Performance

Obviously, what investors are looking for in these funds is strong performance relative to their peers. UUPIX has a 5-year annualized total return of 10.23% 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 1.71%, 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. Compared to the category average of 25.75%, the standard deviation of UUPIX over the past three years is 47.59%. Over the past 5 years, the standard deviation of the fund is 44.42% compared to the category average of 27.16%. This makes the fund more volatile than its peers over the past half-decade.

Risk Factors

Investors should not forget about beta, an important way to measure a mutual fund's risk compared to the market as a whole. UUPIX has a 5-year beta of 1.42, which means it is likely to be more volatile than the market average. 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. With a negative alpha of -6.08, managers in this portfolio find it difficult to pick securities that generate better-than-benchmark returns.

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, UUPIX is a no load fund. It has an expense ratio of 1.78% compared to the category average of 1.41%. So, UUPIX is actually more expensive than its peers from a cost perspective.

While the minimum initial investment for the product is $15,000, investors should also note that there is no minimum for each subsequent investment.

Fees charged by investment advisors have not been taken into considiration. Returns would be less if those were included.

Bottom Line

Overall, ProFunds UltraEmerging Markets Investor ( UUPIX ) has a low Zacks Mutual Fund rank, and in conjunction with its comparatively weak performance, worse downside risk, and higher fees, ProFunds UltraEmerging Markets Investor ( UUPIX ) looks like a somewhat weak choice for investors right now.

For additional information on this product, or to compare it to other mutual funds in the Non US - Equity, make sure to go to www.zacks.com/funds/mutual-funds 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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