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Is Shelton Nasdaq-100 Index Direct (NASDX) a Strong Mutual Fund Pick Right Now?

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There are plenty of choices in the Index category, but where should you start your research? Well, one fund that might be worth investigating is Shelton Nasdaq-100 Index Direct (NASDX - Free Report) . NASDX has no Zacks Mutual Fund Rank, but we have been able to look into other metrics like performance, volatility, and cost.

History of Fund/Manager

Shelton is responsible for NASDX, and the company is based out of Denver, CO. Shelton Nasdaq-100 Index Direct debuted in April of 2000. Since then, NASDX has accumulated assets of about $1.75 billion, according to the most recently available information. The fund's current manager, Stephen C. Rogers, has been in charge of the fund since December of 2003.

Performance

Obviously, what investors are looking for in these funds is strong performance relative to their peers. This fund in particular has delivered a 5-year annualized total return of 20.41%, and is in the top 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 8.39%, which places it in the top 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, NASDX's standard deviation comes in at 21.87%, compared to the category average of 20.96%. The standard deviation of the fund over the past 5 years is 21.48% compared to the category average of 20.86%. 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 1.1, so it is likely going to be more 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. The fund has produced a positive alpha over the past 5 years of 3.89, which shows that managers in this portfolio are skilled in picking 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, NASDX is a no load fund. It has an expense ratio of 0.51% compared to the category average of 0.93%. So, NASDX is actually cheaper than its peers from a cost perspective.

This fund requires a minimum initial investment of $1,000, 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

For additional information on this product, or to compare it to other mutual funds in the Index, make sure to go to www.zacks.com/funds/mutual-funds for additional information. And don't forget, Zacks has all of your needs covered on the equity side too! Make sure to check out Zacks.com for more information on our screening capabilities, Rank, and all our articles as well.


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