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Is Index Funds S&P 500 Equal Weight (INDEX) a Strong Mutual Fund Pick Right Now?
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If investors are looking at the Index fund category, Index Funds S&P 500 Equal Weight (INDEX - Free Report) could be a potential option. INDEX carries a Zacks Mutual Fund Rank of 2 (Buy), which is based on various forecasting factors like size, cost, and past performance.
History of Fund/Manager
Index Funds is based in Denver, CO, and is the manager of INDEX. Index Funds S&P 500 Equal Weight made its debut in April of 2015, and since then, INDEX has accumulated about $125.61 million in assets, per the most up-to-date date available. Michael Willis is the fund's current manager and has held that role since April of 2015.
Performance
Investors naturally seek funds with strong performance. This fund has delivered a 5-year annualized total return of 12.72%, and is 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 6.77%, 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. INDEX's standard deviation over the past three years is 17.69% compared to the category average of 17.18%. The standard deviation of the fund over the past 5 years is 19.81% compared to the category average of 18.12%. This makes the fund more volatile than its peers over the past half-decade.
Risk Factors
With a 5-year beta of 1.05, the fund is likely to be more volatile than the market average. 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. With a negative alpha of -2.57, 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, INDEX is a no load fund. It has an expense ratio of 0.25% compared to the category average of 0.76%. So, INDEX 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 $1,000.
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, average downside risk, and lower fees, Index Funds S&P 500 Equal Weight ( INDEX ) has a high Zacks Mutual Fund rank, and therefore looks a great potential choice for investors right now.
Your research on the Index segment doesn't have to stop here. You can check out all the great mutual fund tools we have to offer by going to www.zacks.com/funds/mutual-funds to see the additional features we offer as well 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 Index Funds S&P 500 Equal Weight (INDEX) a Strong Mutual Fund Pick Right Now?
If investors are looking at the Index fund category, Index Funds S&P 500 Equal Weight (INDEX - Free Report) could be a potential option. INDEX carries a Zacks Mutual Fund Rank of 2 (Buy), which is based on various forecasting factors like size, cost, and past performance.
History of Fund/Manager
Index Funds is based in Denver, CO, and is the manager of INDEX. Index Funds S&P 500 Equal Weight made its debut in April of 2015, and since then, INDEX has accumulated about $125.61 million in assets, per the most up-to-date date available. Michael Willis is the fund's current manager and has held that role since April of 2015.
Performance
Investors naturally seek funds with strong performance. This fund has delivered a 5-year annualized total return of 12.72%, and is 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 6.77%, 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. INDEX's standard deviation over the past three years is 17.69% compared to the category average of 17.18%. The standard deviation of the fund over the past 5 years is 19.81% compared to the category average of 18.12%. This makes the fund more volatile than its peers over the past half-decade.
Risk Factors
With a 5-year beta of 1.05, the fund is likely to be more volatile than the market average. 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. With a negative alpha of -2.57, 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, INDEX is a no load fund. It has an expense ratio of 0.25% compared to the category average of 0.76%. So, INDEX 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 $1,000.
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, average downside risk, and lower fees, Index Funds S&P 500 Equal Weight ( INDEX ) has a high Zacks Mutual Fund rank, and therefore looks a great potential choice for investors right now.
Your research on the Index segment doesn't have to stop here. You can check out all the great mutual fund tools we have to offer by going to www.zacks.com/funds/mutual-funds to see the additional features we offer as well 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.