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Is BlackRock Exchange BlackRock (STSEX) a Strong Mutual Fund Pick Right Now?
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If investors are looking at the Large Cap Growth fund category, BlackRock Exchange BlackRock (STSEX - Free Report) could be a potential option. STSEX holds a Zacks Mutual Fund Rank of 2 (Buy), which is based on various forecasting factors like size, cost, and past performance.
Objective
STSEX is part of the Large Cap Growth section, and this segment boasts an array of other possible options. Large Cap Growth mutual funds purchase stakes in numerous large U.S. companies that are expected to develop and grow at a faster rate than other large-cap stocks. Companies are usually considered to be large-cap if their market capitalization is over $10 billion.
History of Fund/Manager
STSEX is a part of the BlackRock family of funds, a company based out of New York, NY. BlackRock Exchange BlackRock debuted in May of 1986. Since then, STSEX has accumulated assets of about $276.78 million, according to the most recently available information. The fund is currently managed by Phil Ruvinsky who has been in charge of the fund since February of 2020.
Performance
Of course, investors look for strong performance in funds. STSEX has a 5-year annualized total return of 17.14%, and it sits in the top 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 18.34%, 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. Over the past three years, STSEX's standard deviation comes in at 13.21%, compared to the category average of 16.67%. The fund's standard deviation over the past 5 years is 14.19% compared to the category average of 16.24%. This makes the fund less 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. STSEX has a 5-year beta of 0.8, which means it 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. STSEX has generated a positive alpha over the past five years of 3.05, demonstrating that managers in this portfolio are skilled in picking securities that generate better-than-benchmark returns.
Holdings
Examining the equity holdings of a mutual fund is also a valuable exercise. This can show us how the manager is applying their stated methodology, as well as if there are any inherent biases in their approach. For this particular fund, the focus is largely on equities that are traded in the United States.
This fund is currently holding about 81.86% in stocks, with an average market capitalization of $1.04 trillion. The fund has the heaviest exposure to the following market sectors:
Finance
Technology
Health
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, STSEX is a no load fund. It has an expense ratio of 0.84% compared to the category average of 0.72%. STSEX is actually more expensive than its peers when you consider factors like cost.
Investors should also note that the minimum initial investment for the product is $0 and that each subsequent investment has no minimum amount.
Fees charged by investment advisors have not been taken into consideration. Returns would be less if those were included.
Bottom Line
Overall, BlackRock Exchange BlackRock ( STSEX ) has a high Zacks Mutual Fund rank, and in conjunction with its comparatively strong performance, average downside risk, and higher fees, BlackRock Exchange BlackRock ( STSEX ) looks like a good potential choice for investors right now.
This could just be the start of your research on STSEX in the Large Cap Growth category. Consider going to www.zacks.com/funds/mutual-funds for additional information about this fund, and all the others that we rank 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 BlackRock Exchange BlackRock (STSEX) a Strong Mutual Fund Pick Right Now?
If investors are looking at the Large Cap Growth fund category, BlackRock Exchange BlackRock (STSEX - Free Report) could be a potential option. STSEX holds a Zacks Mutual Fund Rank of 2 (Buy), which is based on various forecasting factors like size, cost, and past performance.
Objective
STSEX is part of the Large Cap Growth section, and this segment boasts an array of other possible options. Large Cap Growth mutual funds purchase stakes in numerous large U.S. companies that are expected to develop and grow at a faster rate than other large-cap stocks. Companies are usually considered to be large-cap if their market capitalization is over $10 billion.
History of Fund/Manager
STSEX is a part of the BlackRock family of funds, a company based out of New York, NY. BlackRock Exchange BlackRock debuted in May of 1986. Since then, STSEX has accumulated assets of about $276.78 million, according to the most recently available information. The fund is currently managed by Phil Ruvinsky who has been in charge of the fund since February of 2020.
Performance
Of course, investors look for strong performance in funds. STSEX has a 5-year annualized total return of 17.14%, and it sits in the top 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 18.34%, 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. Over the past three years, STSEX's standard deviation comes in at 13.21%, compared to the category average of 16.67%. The fund's standard deviation over the past 5 years is 14.19% compared to the category average of 16.24%. This makes the fund less 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. STSEX has a 5-year beta of 0.8, which means it 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. STSEX has generated a positive alpha over the past five years of 3.05, demonstrating that managers in this portfolio are skilled in picking securities that generate better-than-benchmark returns.
Holdings
Examining the equity holdings of a mutual fund is also a valuable exercise. This can show us how the manager is applying their stated methodology, as well as if there are any inherent biases in their approach. For this particular fund, the focus is largely on equities that are traded in the United States.
This fund is currently holding about 81.86% in stocks, with an average market capitalization of $1.04 trillion. The fund has the heaviest exposure to the following market sectors:
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, STSEX is a no load fund. It has an expense ratio of 0.84% compared to the category average of 0.72%. STSEX is actually more expensive than its peers when you consider factors like cost.
Investors should also note that the minimum initial investment for the product is $0 and that each subsequent investment has no minimum amount.
Fees charged by investment advisors have not been taken into consideration. Returns would be less if those were included.
Bottom Line
Overall, BlackRock Exchange BlackRock ( STSEX ) has a high Zacks Mutual Fund rank, and in conjunction with its comparatively strong performance, average downside risk, and higher fees, BlackRock Exchange BlackRock ( STSEX ) looks like a good potential choice for investors right now.
This could just be the start of your research on STSEX in the Large Cap Growth category. Consider going to www.zacks.com/funds/mutual-funds for additional information about this fund, and all the others that we rank 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.