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Is Invesco Developing Markets R6 (ODVIX) a Strong Mutual Fund Pick Right Now?
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Any investors hoping to find a Non US - Equity fund could think about starting with Invesco Developing Markets R6 (ODVIX - Free Report) . ODVIX possesses a Zacks Mutual Fund Rank of 3 (Hold), which is based on various forecasting factors like size, cost, and past performance.
Objective
ODVIX is classified in the Non US - Equity area by Zacks, and this segment is full of potential. Non US - Equity funds focus their investments on companies outside of the United States, which is an important distinction since global mutual funds tend to keep a sizable portion of their portfolio based in the United States. Most of these funds will allocate across emerging and developed markets, and can often extend across cap levels too.
History of Fund/Manager
Invesco is based in Kansas City, MO, and is the manager of ODVIX. Invesco Developing Markets R6 made its debut in December of 2011, and since then, ODVIX has accumulated about $8.50 billion in assets, per the most up-to-date date available. Justin Leverenz is the fund's current manager and has held that role since December of 2011.
Performance
Of course, investors look for strong performance in funds. This fund carries a 5-year annualized total return of -0.22%, and it sits 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 -9.12%, 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 14.83%, the standard deviation of ODVIX over the past three years is 19.35%. The standard deviation of the fund over the past 5 years is 19.76% compared to the category average of 15.97%. This makes the fund more volatile than its peers over the past half-decade.
Risk Factors
With a 5-year beta of 0.79, the fund is likely to be less volatile than the market average. Another factor to consider is alpha, as it reflects a portfolio's performance on a risk-adjusted basis relative to a benchmark-in this case, the S&P 500. ODVIX has generated a negative alpha over the past five years of -9.5, demonstrating that managers in this portfolio find it difficult to pick securities that generate better-than-benchmark returns.
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, ODVIX is a no load fund. It has an expense ratio of 0.87% compared to the category average of 0.98%. From a cost perspective, ODVIX is actually cheaper than its peers.
Investors should also note that the minimum initial investment for the product is $1 million and that each subsequent investment has no minimum amount.
Fees charged by investment advisors have not been taken into considiration. Returns would be less if those were included.
Bottom Line
Overall, even with its comparatively weak performance, average downside risk, and lower fees, Invesco Developing Markets R6 ( ODVIX ) has a neutral Zacks Mutual Fund rank, and therefore looks a somewhat average choice for investors right now.
Want even more information about ODVIX? 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. For analysis of the rest of your portfolio, make sure to visit Zacks.com for our full suite of tools which will help you investigate all of your stocks and funds in one place.
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Is Invesco Developing Markets R6 (ODVIX) a Strong Mutual Fund Pick Right Now?
Any investors hoping to find a Non US - Equity fund could think about starting with Invesco Developing Markets R6 (ODVIX - Free Report) . ODVIX possesses a Zacks Mutual Fund Rank of 3 (Hold), which is based on various forecasting factors like size, cost, and past performance.
Objective
ODVIX is classified in the Non US - Equity area by Zacks, and this segment is full of potential. Non US - Equity funds focus their investments on companies outside of the United States, which is an important distinction since global mutual funds tend to keep a sizable portion of their portfolio based in the United States. Most of these funds will allocate across emerging and developed markets, and can often extend across cap levels too.
History of Fund/Manager
Invesco is based in Kansas City, MO, and is the manager of ODVIX. Invesco Developing Markets R6 made its debut in December of 2011, and since then, ODVIX has accumulated about $8.50 billion in assets, per the most up-to-date date available. Justin Leverenz is the fund's current manager and has held that role since December of 2011.
Performance
Of course, investors look for strong performance in funds. This fund carries a 5-year annualized total return of -0.22%, and it sits 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 -9.12%, 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 14.83%, the standard deviation of ODVIX over the past three years is 19.35%. The standard deviation of the fund over the past 5 years is 19.76% compared to the category average of 15.97%. This makes the fund more volatile than its peers over the past half-decade.
Risk Factors
With a 5-year beta of 0.79, the fund is likely to be less volatile than the market average. Another factor to consider is alpha, as it reflects a portfolio's performance on a risk-adjusted basis relative to a benchmark-in this case, the S&P 500. ODVIX has generated a negative alpha over the past five years of -9.5, demonstrating that managers in this portfolio find it difficult to pick securities that generate better-than-benchmark returns.
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, ODVIX is a no load fund. It has an expense ratio of 0.87% compared to the category average of 0.98%. From a cost perspective, ODVIX is actually cheaper than its peers.
Investors should also note that the minimum initial investment for the product is $1 million and that each subsequent investment has no minimum amount.
Fees charged by investment advisors have not been taken into considiration. Returns would be less if those were included.
Bottom Line
Overall, even with its comparatively weak performance, average downside risk, and lower fees, Invesco Developing Markets R6 ( ODVIX ) has a neutral Zacks Mutual Fund rank, and therefore looks a somewhat average choice for investors right now.
Want even more information about ODVIX? 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. For analysis of the rest of your portfolio, make sure to visit Zacks.com for our full suite of tools which will help you investigate all of your stocks and funds in one place.