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Is Virtus Duff & Phelps Water A (AWTAX) a Strong Mutual Fund Pick Right Now?
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There are plenty of choices in the Sector - Utilities category, but where should you start your research? Well, one fund that may not be worth investigating is Virtus Duff & Phelps Water A (AWTAX - Free Report) . 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 finds itself in the Virtus Funds family, based out of Hartford, CT. Virtus Duff & Phelps Water A debuted in April of 2008. Since then, AWTAX has accumulated assets of about $221.82 million, according to the most recently available information. David D. Grumhaus is the fund's current manager and has held that role since June of 2022.
Performance
Of course, investors look for strong performance in funds. This fund has delivered a 5-year annualized total return of 8.51%, 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 0.2%, 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. AWTAX's standard deviation over the past three years is 20.17% compared to the category average of 16.98%. The standard deviation of the fund over the past 5 years is 19.09% compared to the category average of 18.66%. 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 0.95, so it is likely going to be less volatile than the market at large. Alpha is an additional metric to take into consideration, since it represents a portfolio's performance on a risk-adjusted basis relative to a benchmark, which in this case, is the S&P 500. With a negative alpha of -5.14, 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 1.22% compared to the category average of 1%. From a cost perspective, AWTAX is actually more expensive than its peers.
This fund requires a minimum initial investment of $2,500, and each subsequent investment should be at least $100.
Fees charged by investment advisors have not been taken into considiration. 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.
This could just be the start of your research on AWTAXin the Sector - Utilities 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. Want to learn even more? We have a full suite of tools on stocks that you can use to find the best choices for your portfolio too, no matter what kind of investor you are.
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Is Virtus Duff & Phelps Water A (AWTAX) a Strong Mutual Fund Pick Right Now?
There are plenty of choices in the Sector - Utilities category, but where should you start your research? Well, one fund that may not be worth investigating is Virtus Duff & Phelps Water A (AWTAX - Free Report) . 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 finds itself in the Virtus Funds family, based out of Hartford, CT. Virtus Duff & Phelps Water A debuted in April of 2008. Since then, AWTAX has accumulated assets of about $221.82 million, according to the most recently available information. David D. Grumhaus is the fund's current manager and has held that role since June of 2022.
Performance
Of course, investors look for strong performance in funds. This fund has delivered a 5-year annualized total return of 8.51%, 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 0.2%, 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. AWTAX's standard deviation over the past three years is 20.17% compared to the category average of 16.98%. The standard deviation of the fund over the past 5 years is 19.09% compared to the category average of 18.66%. 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 0.95, so it is likely going to be less volatile than the market at large. Alpha is an additional metric to take into consideration, since it represents a portfolio's performance on a risk-adjusted basis relative to a benchmark, which in this case, is the S&P 500. With a negative alpha of -5.14, 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 1.22% compared to the category average of 1%. From a cost perspective, AWTAX is actually more expensive than its peers.
This fund requires a minimum initial investment of $2,500, and each subsequent investment should be at least $100.
Fees charged by investment advisors have not been taken into considiration. 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.
This could just be the start of your research on AWTAXin the Sector - Utilities 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. Want to learn even more? We have a full suite of tools on stocks that you can use to find the best choices for your portfolio too, no matter what kind of investor you are.