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Is Invesco SteelPath MLP Income A (MLPDX) a Strong Mutual Fund Pick Right Now?
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Sector - Energy fund seekers should not consider taking a look at Invesco SteelPath MLP Income A (MLPDX - Free Report) at this time. MLPDX bears a Zacks Mutual Fund Rank of 4 (Sell), which is based on various forecasting factors like size, cost, and past performance.
Objective
MLPDX is one of many Sector - Energy funds to choose from. Sector - Energy mutual funds are comprised of various changing and hugely important industries throughout the massive global energy sector. Even though clean energy is beginning to pick up steam, oil and gas companies have the highest exposure, but carbon-based fuels will be the biggest group of assets in these funds.
History of Fund/Manager
Invesco is based in Kansas City, MO, and is the manager of MLPDX. Since Invesco SteelPath MLP Income A made its debut in April of 2010, MLPDX has garnered more than $1.95 billion in assets. Stuart Cartner is the fund's current manager and has held that role since April of 2010.
Performance
Of course, investors look for strong performance in funds. This fund in particular has delivered a 5-year annualized total return of 29.07%, and it sits in the top third among its category peers. Investors who prefer analyzing shorter time frames should look at its 3-year annualized total return of 22.72%, which places it in the middle 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 14.99%, the standard deviation of MLPDX over the past three years is 15.71%. The fund's standard deviation over the past 5 years is 19.98% compared to the category average of 14.98%. This makes the fund more volatile than its peers over the past half-decade.
Risk Factors
With a 5-year beta of 0.7, the fund is likely to be less 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 positive alpha of 16.15, managers in this portfolio are skilled in picking securities that generate better-than-benchmark returns.
Expenses
Costs are increasingly important for mutual fund investing, and particularly as competition heats up in this market. And all things being equal, a lower cost product will outperform its otherwise identical counterpart, so taking a closer look at these metrics is key for investors. In terms of fees, MLPDX is a load fund. It has an expense ratio of 1.41% compared to the category average of 1.08%. MLPDX is actually more expensive than its peers when you consider factors like cost.
While the minimum initial investment for the product is $1,000, investors should also note that each subsequent investment needs to be at least $50.
Fees charged by investment advisors have not been taken into consideration. Returns would be less if those were included.
Bottom Line
Overall, Invesco SteelPath MLP Income A ( MLPDX ) has a low Zacks Mutual Fund rank, and in conjunction with its comparatively strong performance, average downside risk, and higher fees, Invesco SteelPath MLP Income A ( MLPDX ) looks like a poor potential choice for investors right now.
Don't stop here for your research on Sector - Energy 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 MLPDX to its peers 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 SteelPath MLP Income A (MLPDX) a Strong Mutual Fund Pick Right Now?
Sector - Energy fund seekers should not consider taking a look at Invesco SteelPath MLP Income A (MLPDX - Free Report) at this time. MLPDX bears a Zacks Mutual Fund Rank of 4 (Sell), which is based on various forecasting factors like size, cost, and past performance.
Objective
MLPDX is one of many Sector - Energy funds to choose from. Sector - Energy mutual funds are comprised of various changing and hugely important industries throughout the massive global energy sector. Even though clean energy is beginning to pick up steam, oil and gas companies have the highest exposure, but carbon-based fuels will be the biggest group of assets in these funds.
History of Fund/Manager
Invesco is based in Kansas City, MO, and is the manager of MLPDX. Since Invesco SteelPath MLP Income A made its debut in April of 2010, MLPDX has garnered more than $1.95 billion in assets. Stuart Cartner is the fund's current manager and has held that role since April of 2010.
Performance
Of course, investors look for strong performance in funds. This fund in particular has delivered a 5-year annualized total return of 29.07%, and it sits in the top third among its category peers. Investors who prefer analyzing shorter time frames should look at its 3-year annualized total return of 22.72%, which places it in the middle 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 14.99%, the standard deviation of MLPDX over the past three years is 15.71%. The fund's standard deviation over the past 5 years is 19.98% compared to the category average of 14.98%. This makes the fund more volatile than its peers over the past half-decade.
Risk Factors
With a 5-year beta of 0.7, the fund is likely to be less 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 positive alpha of 16.15, managers in this portfolio are skilled in picking securities that generate better-than-benchmark returns.
Expenses
Costs are increasingly important for mutual fund investing, and particularly as competition heats up in this market. And all things being equal, a lower cost product will outperform its otherwise identical counterpart, so taking a closer look at these metrics is key for investors. In terms of fees, MLPDX is a load fund. It has an expense ratio of 1.41% compared to the category average of 1.08%. MLPDX is actually more expensive than its peers when you consider factors like cost.
While the minimum initial investment for the product is $1,000, investors should also note that each subsequent investment needs to be at least $50.
Fees charged by investment advisors have not been taken into consideration. Returns would be less if those were included.
Bottom Line
Overall, Invesco SteelPath MLP Income A ( MLPDX ) has a low Zacks Mutual Fund rank, and in conjunction with its comparatively strong performance, average downside risk, and higher fees, Invesco SteelPath MLP Income A ( MLPDX ) looks like a poor potential choice for investors right now.
Don't stop here for your research on Sector - Energy 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 MLPDX to its peers 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.