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Is Driehaus International Small Cap Growth (DRIOX) a Strong Mutual Fund Pick Right Now?
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If investors are looking at the All Cap Growth fund category, Driehaus International Small Cap Growth (DRIOX - Free Report) could be a potential option. DRIOX carries a Zacks Mutual Fund Rank of 2 (Buy), which is based on nine forecasting factors like size, cost, and past performance.
Objective
Tickers is classified in the All Cap Growth segment by Zacks, an area full of possibilities. All Cap Growth funds have holdings across small, medium, and large-cap levels in order to increase diversification. As long as stocks demonstrate strong growth characteristics, these portfolios will invest in various equity securities regardless of company size.
History of Fund/Manager
Driehaus is based in Chicago, IL, and is the manager of DRIOX. Since Driehaus International Small Cap Growth made its debut in September of 2007, DRIOX has garnered more than $256.93 million in assets. The fund is currently managed by a team of investment professionals.
Performance
Of course, investors look for strong performance in funds. This fund carries a 5-year annualized total return of 7.84%, 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 11.05%, which places it in the top third during this time-frame.
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. DRIOX's standard deviation over the past three years is 12.9% compared to the category average of 12.92%. Over the past 5 years, the standard deviation of the fund is 12.19% compared to the category average of 13.38%. This makes the fund less volatile than its peers over the past half-decade.
Risk Factors
One cannot ignore the volatility of this segment, however, as it is always important for investors to remember the downside to any potential investment. DRIOX lost 58.88% in the most recent bear market and outperformed its peer group by 0%. This could mean that the fund is an on par choice than comparable funds during a bear market.
Investors should note that the fund has a 5-year beta of 0.74, 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. Over the past 5 years, the fund has a negative alpha of -0.11. This means 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, DRIOX is a no load fund. It has an expense ratio of 1.25% compared to the category average of 1.25%. DRIOX is actually on par with its peers when you consider factors like cost.
While the minimum initial investment for the product is $10,000, investors should also note that each subsequent investment needs to be at least $2,000.
Bottom Line
Overall, Driehaus International Small Cap Growth ( DRIOX ) has a high Zacks Mutual Fund rank, and in conjunction with its comparatively strong performance, average downside risk, and on par fees, this fund looks like a good potential choice for investors right now.
For additional information on this product, or to compare it to other mutual funds in the All Cap Growth, make sure to go to www.zacks.com/funds/mutual-funds for additional information. If you want to check out our stock reports as well, make sure to go to Zacks.com to see all of the great tools we have to offer, including our time-tested Zacks Rank.
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Is Driehaus International Small Cap Growth (DRIOX) a Strong Mutual Fund Pick Right Now?
If investors are looking at the All Cap Growth fund category, Driehaus International Small Cap Growth (DRIOX - Free Report) could be a potential option. DRIOX carries a Zacks Mutual Fund Rank of 2 (Buy), which is based on nine forecasting factors like size, cost, and past performance.
Objective
Tickers is classified in the All Cap Growth segment by Zacks, an area full of possibilities. All Cap Growth funds have holdings across small, medium, and large-cap levels in order to increase diversification. As long as stocks demonstrate strong growth characteristics, these portfolios will invest in various equity securities regardless of company size.
History of Fund/Manager
Driehaus is based in Chicago, IL, and is the manager of DRIOX. Since Driehaus International Small Cap Growth made its debut in September of 2007, DRIOX has garnered more than $256.93 million in assets. The fund is currently managed by a team of investment professionals.
Performance
Of course, investors look for strong performance in funds. This fund carries a 5-year annualized total return of 7.84%, 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 11.05%, which places it in the top third during this time-frame.
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. DRIOX's standard deviation over the past three years is 12.9% compared to the category average of 12.92%. Over the past 5 years, the standard deviation of the fund is 12.19% compared to the category average of 13.38%. This makes the fund less volatile than its peers over the past half-decade.
Risk Factors
One cannot ignore the volatility of this segment, however, as it is always important for investors to remember the downside to any potential investment. DRIOX lost 58.88% in the most recent bear market and outperformed its peer group by 0%. This could mean that the fund is an on par choice than comparable funds during a bear market.
Investors should note that the fund has a 5-year beta of 0.74, 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. Over the past 5 years, the fund has a negative alpha of -0.11. This means 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, DRIOX is a no load fund. It has an expense ratio of 1.25% compared to the category average of 1.25%. DRIOX is actually on par with its peers when you consider factors like cost.
While the minimum initial investment for the product is $10,000, investors should also note that each subsequent investment needs to be at least $2,000.
Bottom Line
Overall, Driehaus International Small Cap Growth ( DRIOX ) has a high Zacks Mutual Fund rank, and in conjunction with its comparatively strong performance, average downside risk, and on par fees, this fund looks like a good potential choice for investors right now.
For additional information on this product, or to compare it to other mutual funds in the All Cap Growth, make sure to go to www.zacks.com/funds/mutual-funds for additional information. If you want to check out our stock reports as well, make sure to go to Zacks.com to see all of the great tools we have to offer, including our time-tested Zacks Rank.