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If you've been stuck searching for Diversified Bonds funds, you might want to consider passing on by Metropolitan West Total Retail Bond I (MWTIX - Free Report) as a possibility. MWTIX bears a Zacks Mutual Fund Rank of 5 (Strong Sell), which is based on various forecasting factors like size, cost, and past performance.
Objective
We classify MWTIX in the Diversified Bonds category, an area that is rife with potential choices. Diversified Bonds funds offer exposure to a wide variety of fixed income types, stretching across various issuers, credit levels, and maturities. Generally speaking, bond funds here will have sizable exposure to government debt, as well as modest holdings in the corporate bond market too.
History of Fund/Manager
Metropolitan is based in Los Angeles, CA, and is the manager of MWTIX. The Metropolitan West Total Retail Bond I made its debut in April of 2000 and MWTIX has managed to accumulate roughly $28.02 billion in assets, as of the most recently available information. A team of investment professionals is the fund's current manager.
Performance
Investors naturally seek funds with strong performance. This fund carries a 5-year annualized total return of -0.24%, and it sits in the bottom third among its category peers. Investors who prefer analyzing shorter time frames should look at its 3-year annualized total return of -4.3%, 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, MWTIX's standard deviation comes in at 8.21%, compared to the category average of 12.83%. Looking at the past 5 years, the fund's standard deviation is 6.99% compared to the category average of 13.5%. This makes the fund less volatile than its peers over the past half-decade.
MWTIX carries a beta of 1.11, meaning that the fund is more volatile than a broad market index of fixed income securities. With this in mind, it has a positive alpha of 0.2, which measures performance on a risk-adjusted basis.
Ratings
Investors should also consider a bond's rating, which is a grade ( 'AAA' to 'D' ) given to a bond that indicates its credit quality. With this letter scale in mind, MWTIX has 71.1% in high quality bonds rated at least 'AA' or higher, while 20.47% are of medium quality, with ratings of 'A' to 'BBB'. The fund has an average quality of AA, and focuses on high quality securities.
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, MWTIX is a no load fund. It has an expense ratio of 0.45% compared to the category average of 0.89%. Looking at the fund from a cost perspective, MWTIX is actually cheaper than its peers.
Investors should also note that the minimum initial investment for the product is $3 million and that each subsequent investment needs to be at $50,000
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, better downside risk, and lower fees, Metropolitan West Total Retail Bond I ( MWTIX ) has a low Zacks Mutual Fund rank, and therefore looks a somewhat weak choice for investors right now.
Want even more information about MWTIX? 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 MWTIX a Strong Bond Fund Right Now?
If you've been stuck searching for Diversified Bonds funds, you might want to consider passing on by Metropolitan West Total Retail Bond I (MWTIX - Free Report) as a possibility. MWTIX bears a Zacks Mutual Fund Rank of 5 (Strong Sell), which is based on various forecasting factors like size, cost, and past performance.
Objective
We classify MWTIX in the Diversified Bonds category, an area that is rife with potential choices. Diversified Bonds funds offer exposure to a wide variety of fixed income types, stretching across various issuers, credit levels, and maturities. Generally speaking, bond funds here will have sizable exposure to government debt, as well as modest holdings in the corporate bond market too.
History of Fund/Manager
Metropolitan is based in Los Angeles, CA, and is the manager of MWTIX. The Metropolitan West Total Retail Bond I made its debut in April of 2000 and MWTIX has managed to accumulate roughly $28.02 billion in assets, as of the most recently available information. A team of investment professionals is the fund's current manager.
Performance
Investors naturally seek funds with strong performance. This fund carries a 5-year annualized total return of -0.24%, and it sits in the bottom third among its category peers. Investors who prefer analyzing shorter time frames should look at its 3-year annualized total return of -4.3%, 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, MWTIX's standard deviation comes in at 8.21%, compared to the category average of 12.83%. Looking at the past 5 years, the fund's standard deviation is 6.99% compared to the category average of 13.5%. This makes the fund less volatile than its peers over the past half-decade.
MWTIX carries a beta of 1.11, meaning that the fund is more volatile than a broad market index of fixed income securities. With this in mind, it has a positive alpha of 0.2, which measures performance on a risk-adjusted basis.
Ratings
Investors should also consider a bond's rating, which is a grade ( 'AAA' to 'D' ) given to a bond that indicates its credit quality. With this letter scale in mind, MWTIX has 71.1% in high quality bonds rated at least 'AA' or higher, while 20.47% are of medium quality, with ratings of 'A' to 'BBB'. The fund has an average quality of AA, and focuses on high quality securities.
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, MWTIX is a no load fund. It has an expense ratio of 0.45% compared to the category average of 0.89%. Looking at the fund from a cost perspective, MWTIX is actually cheaper than its peers.
Investors should also note that the minimum initial investment for the product is $3 million and that each subsequent investment needs to be at $50,000
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, better downside risk, and lower fees, Metropolitan West Total Retail Bond I ( MWTIX ) has a low Zacks Mutual Fund rank, and therefore looks a somewhat weak choice for investors right now.
Want even more information about MWTIX? 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.