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Is Columbia Acorn Fund Z (ACRNX) a Strong Mutual Fund Pick Right Now?
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Having trouble finding a Mutual Fund Equity Report fund? Well, Columbia Acorn Fund Z (ACRNX - Free Report) would not be a good potential starting point right now. ACRNX holds a Zacks Mutual Fund Rank of 4 (Sell), which is based on various forecasting factors like size, cost, and past performance.
History of Fund/Manager
ACRNX finds itself in the Columbia family, based out of Kansas City, MO. Since Columbia Acorn Fund Z made its debut in June of 1970, ACRNX has garnered more than $2.02 billion in assets. The fund's current manager, Erika K. Maschmeyer, has been in charge of the fund since May of 2019.
Performance
Investors naturally seek funds with strong performance. This fund carries a 5-year annualized total return of 3.15%, 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 0.98%, which places it in the bottom third during this time-frame.
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. The standard deviation of ACRNX over the past three years is 26.42% compared to the category average of 18.51%. Over the past 5 years, the standard deviation of the fund is 23.42% compared to the category average of 16.23%. This makes the fund more volatile than its peers over the past half-decade.
Risk Factors
Investors should note that the fund has a 5-year beta of 1.09, which means it is hypothetically more volatile than the market at large. 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. The fund has produced a negative alpha over the past 5 years of -5.74, which shows that managers in this portfolio find it difficult to pick securities that generate better-than-benchmark returns.
Holdings
Exploring 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.
Currently, this mutual fund is holding 82.47% stock in stocks, which have an average market capitalization of $11.37 billion. The fund has the heaviest exposure to the following market sectors:
Technology
Non-Durable
Services
Turnover is 72%, which means, on average, the fund makes more trades per year than the comparable average.
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, ACRNX is a no load fund. It has an expense ratio of 0.85% compared to the category average of 1.15%. So, ACRNX is actually cheaper than its peers from a cost perspective.
Investors need to be aware that with this product, the minimum initial investment is $0; each subsequent investment has no minimum amount.
Bottom Line
Overall, Columbia Acorn Fund Z ( ACRNX ) has a low Zacks Mutual Fund rank, and in conjunction with its comparatively weak performance, worse downside risk, and lower fees, this fund looks like a somewhat weak choice for investors right now.
Want even more information about ACRNX? 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. 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 Columbia Acorn Fund Z (ACRNX) a Strong Mutual Fund Pick Right Now?
Having trouble finding a Mutual Fund Equity Report fund? Well, Columbia Acorn Fund Z (ACRNX - Free Report) would not be a good potential starting point right now. ACRNX holds a Zacks Mutual Fund Rank of 4 (Sell), which is based on various forecasting factors like size, cost, and past performance.
History of Fund/Manager
ACRNX finds itself in the Columbia family, based out of Kansas City, MO. Since Columbia Acorn Fund Z made its debut in June of 1970, ACRNX has garnered more than $2.02 billion in assets. The fund's current manager, Erika K. Maschmeyer, has been in charge of the fund since May of 2019.
Performance
Investors naturally seek funds with strong performance. This fund carries a 5-year annualized total return of 3.15%, 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 0.98%, which places it in the bottom third during this time-frame.
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. The standard deviation of ACRNX over the past three years is 26.42% compared to the category average of 18.51%. Over the past 5 years, the standard deviation of the fund is 23.42% compared to the category average of 16.23%. This makes the fund more volatile than its peers over the past half-decade.
Risk Factors
Investors should note that the fund has a 5-year beta of 1.09, which means it is hypothetically more volatile than the market at large. 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. The fund has produced a negative alpha over the past 5 years of -5.74, which shows that managers in this portfolio find it difficult to pick securities that generate better-than-benchmark returns.
Holdings
Exploring 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.
Currently, this mutual fund is holding 82.47% stock in stocks, which have an average market capitalization of $11.37 billion. The fund has the heaviest exposure to the following market sectors:
- Technology
- Non-Durable
- Services
Turnover is 72%, which means, on average, the fund makes more trades per year than the comparable average.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, ACRNX is a no load fund. It has an expense ratio of 0.85% compared to the category average of 1.15%. So, ACRNX is actually cheaper than its peers from a cost perspective.
Investors need to be aware that with this product, the minimum initial investment is $0; each subsequent investment has no minimum amount.
Bottom Line
Overall, Columbia Acorn Fund Z ( ACRNX ) has a low Zacks Mutual Fund rank, and in conjunction with its comparatively weak performance, worse downside risk, and lower fees, this fund looks like a somewhat weak choice for investors right now.
Want even more information about ACRNX? 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. 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.