If investors are looking at the Mutual Fund Equity Report fund category, make sure to pass over ProFunds UltraEmerging Markets Investor (UUPIX). UUPIX holds a Zacks Mutual Fund Rank of 5 (Strong Sell), which is based on nine forecasting factors like size, cost, and past performance.
History of Fund/Manager
ProFunds is based in Columbus, OH, and is the manager of UUPIX. Since ProFunds UltraEmerging Markets Investor made its debut in April of 2006, UUPIX has garnered more than $8.97 million in assets. The fund's current manager, Scott Hanson, has been in charge of the fund since August of 2016.
Performance
Of course, investors look for strong performance in funds. This fund carries a 5-year annualized total return of 2.27%, and it sits in the middle third among its category peers. But if you are looking for a shorter time frame, it is also worth looking at its 3-year annualized total return of -1.82%, which places it in the middle 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. The standard deviation of UUPIX over the past three years is 43.7% compared to the category average of 25.66%. Over the past 5 years, the standard deviation of the fund is 39.64% compared to the category average of 22.93%. This makes the fund more volatile than its peers over the past half-decade.
Risk Factors
With a 5-year beta of 1.72, the fund is likely to be more volatile than the market average. Another factor to consider is alpha, as it reflects a portfolio's performance on a risk-adjusted basis relative to a benchmark-in this case, the S&P 500. UUPIX has generated a negative alpha over the past five years of -15.61, demonstrating that 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, UUPIX is a no load fund. It has an expense ratio of 1.77% compared to the category average of 1.15%. UUPIX is actually more expensive than its peers when you consider factors like cost.
Investors need to be aware that with this product, the minimum initial investment is $15,000; each subsequent investment has no minimum amount.
Bottom Line
Overall, ProFunds UltraEmerging Markets Investor ( UUPIX ) has a low Zacks Mutual Fund rank, and in conjunction with its comparatively similar performance, worse downside risk, and higher fees, this fund looks like a poor potential choice for investors right now.
For additional information on this product, or to compare it to other mutual funds in the Mutual Fund Equity Report, make sure to go to www.zacks.com/funds/mutual-funds 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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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
