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Is Virtus Duff & Phelps Water A (AWTAX) a Strong Mutual Fund Pick Right Now?
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Sector - Utilities fund seekers should not consider taking a look at Virtus Duff & Phelps Water A (AWTAX - Free Report) at this time. AWTAX bears a Zacks Mutual Fund Rank of 5 (Strong Sell), which is based on various forecasting factors like size, cost, and past performance.
Objective
Zacks categorizes AWTAX in Sector - Utilities, which is a segment packed with options. Known for its stability, the utility industry is perfect for investors seeking low risk. Sector - Utilities mutual funds focus on companies that provide essential services to millions of people on a daily basis: think electric power, gas distribution, and water supply.
History of Fund/Manager
AWTAX is a part of the Virtus Funds family of funds, a company based out of Hartford, CT. The Virtus Duff & Phelps Water A made its debut in April of 2008 and AWTAX has managed to accumulate roughly $182.11 million in assets, as of the most recently available information. David Grumhaus is the fund's current manager and has held that role since July of 2022.
Performance
Investors naturally seek funds with strong performance. This fund in particular has delivered a 5-year annualized total return of 2.28%, and it sits in the bottom third among its category peers. But if you are looking for a shorter time frame, it is also worth looking at its 3-year annualized total return of 8.13%, 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, AWTAX's standard deviation comes in at 15.06%, compared to the category average of 13.32%. The standard deviation of the fund over the past 5 years is 17.85% compared to the category average of 15.35%. 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. AWTAX has a 5-year beta of 0.94, 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. AWTAX has generated a negative alpha over the past five years of -9.66, demonstrating that managers in this portfolio find it difficult to pick 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, AWTAX is a load fund. It has an expense ratio of 1.24% compared to the category average of 0.98%. From a cost perspective, AWTAX is actually more expensive than its peers.
Investors need to be aware that with this product, the minimum initial investment is $2,500; each subsequent investment needs to be at least $100.
Fees charged by investment advisors have not been taken into consideration. Returns would be less if those were included.
Bottom Line
Overall, Virtus Duff & Phelps Water A ( AWTAX ) has a low Zacks Mutual Fund rank, and in conjunction with its comparatively weak performance, average downside risk, and higher fees, Virtus Duff & Phelps Water A ( AWTAX ) looks like a somewhat weak choice for investors right now.
Want even more information about AWTAX? Then go over to Zacks.com and check out our mutual fund comparison tool, and all of the other great features that we have to help you with your mutual fund analysis for additional information. Zacks provides a full suite of tools to help you analyze your portfolio - both funds and stocks - in the most efficient way possible.
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Is Virtus Duff & Phelps Water A (AWTAX) a Strong Mutual Fund Pick Right Now?
Sector - Utilities fund seekers should not consider taking a look at Virtus Duff & Phelps Water A (AWTAX - Free Report) at this time. AWTAX bears a Zacks Mutual Fund Rank of 5 (Strong Sell), which is based on various forecasting factors like size, cost, and past performance.
Objective
Zacks categorizes AWTAX in Sector - Utilities, which is a segment packed with options. Known for its stability, the utility industry is perfect for investors seeking low risk. Sector - Utilities mutual funds focus on companies that provide essential services to millions of people on a daily basis: think electric power, gas distribution, and water supply.
History of Fund/Manager
AWTAX is a part of the Virtus Funds family of funds, a company based out of Hartford, CT. The Virtus Duff & Phelps Water A made its debut in April of 2008 and AWTAX has managed to accumulate roughly $182.11 million in assets, as of the most recently available information. David Grumhaus is the fund's current manager and has held that role since July of 2022.
Performance
Investors naturally seek funds with strong performance. This fund in particular has delivered a 5-year annualized total return of 2.28%, and it sits in the bottom third among its category peers. But if you are looking for a shorter time frame, it is also worth looking at its 3-year annualized total return of 8.13%, 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, AWTAX's standard deviation comes in at 15.06%, compared to the category average of 13.32%. The standard deviation of the fund over the past 5 years is 17.85% compared to the category average of 15.35%. 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. AWTAX has a 5-year beta of 0.94, 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. AWTAX has generated a negative alpha over the past five years of -9.66, demonstrating that managers in this portfolio find it difficult to pick 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, AWTAX is a load fund. It has an expense ratio of 1.24% compared to the category average of 0.98%. From a cost perspective, AWTAX is actually more expensive than its peers.
Investors need to be aware that with this product, the minimum initial investment is $2,500; each subsequent investment needs to be at least $100.
Fees charged by investment advisors have not been taken into consideration. Returns would be less if those were included.
Bottom Line
Overall, Virtus Duff & Phelps Water A ( AWTAX ) has a low Zacks Mutual Fund rank, and in conjunction with its comparatively weak performance, average downside risk, and higher fees, Virtus Duff & Phelps Water A ( AWTAX ) looks like a somewhat weak choice for investors right now.
Want even more information about AWTAX? Then go over to Zacks.com and check out our mutual fund comparison tool, and all of the other great features that we have to help you with your mutual fund analysis for additional information. Zacks provides a full suite of tools to help you analyze your portfolio - both funds and stocks - in the most efficient way possible.