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If you are looking for a mutual fund bond fund, check out the Metropolitan West Total Retail Bond Plan (MWTSX – free report). MWTSX holds a Zacks Mutual Fund Rank #5 (Strong Sell) based on a variety of predictive factors including size, cost, and past performance.
History of fund managers
Metropolitan is based in Los Angeles, California and is the manager of MWTSX. The Metropolitan West Total Retail Bond Plan debuted in his August 2011, and since then, MWTSX has amassed approximately $16.82 billion in assets, according to the most recent data available. The fund is currently managed by a team of investment professionals.
performance
Clearly, what investors are looking for from these funds is superior performance relative to other funds. The fund has delivered an annualized total return of 0.76% over his five-year period, placing it in the bottom third of funds in its category. However, if you’re looking for a shorter time horizon, it’s also worth noting that the three-year annualized total return is -4.91%, which puts it in the bottom third for this period.
It is important to note that product returns do not reflect all costs. Unreflected fees reduce your revenue.Total return does not reflect the return of the fund [%] Sales commission. Total revenue would have been even lower if sales commissions had been included.
When looking at a fund’s performance, it’s also important to look at the standard deviation of returns. The lower the standard deviation, the lower the fund’s volatility. The standard deviation of his MWTSX over the past three years is 7.59%, compared to the category average of 12.95%. The fund’s standard deviation over the past five years is 6.62%, compared to the category average of 13.43%. This has resulted in the fund’s lower volatility relative to its peers over the past five years.
The fund has a beta of 1.09, meaning it is more volatile than the broad market index of bonds. Considering this, MWTSX has a positive alpha of 0.18, which measures its risk-adjusted performance.
evaluation
Investors should also consider the bond rating, which is the rating (‘AAA’ to ‘D’) that indicates the creditworthiness of the bond. With this letter scale in mind, 61.4% of MWTSX has high-quality bonds rated at least ‘AA’ or better, and 29.79% has medium-quality bonds rated from ‘A’ to ‘BBB’. The fund has an average quality of AA and focuses on high quality securities.
expenses
As costs become increasingly important when investing in mutual funds, it is important for investors to take a closer look at cost-related metrics. Competition is intense in this space, and all things being equal, lower-priced products may outperform comparable products. Regarding fees, MWTSX is a no-load fund. The expense ratio is 0.37%, compared to the category average of 0.90%. So from a cost perspective, MWTSX is actually cheaper than other products.
The Fund requires a minimum initial investment of $25 million, and each subsequent investment must be at least $50,000.
Fees charged by investment advisors are not taken into account. If they are included, there will be fewer returns.
conclusion
Overall, despite its relatively weak performance, high downside risk, and low fees, Metropolitan West Total Retail Bond Plan (MWTSX) has a low Zacks Mutual Fund Rank, making it a poor choice at the moment. Looks like a rather weak option for investors.
Want to learn more about MWTSX? Then visit Zacks.com to check out our mutual fund comparison tool and all the other great features to help you analyze mutual funds for additional information . And don’t forget, Zacks has you covered on the stocks side too. Be sure to check out Zacks.com to learn more about our screening features, ranks, and all articles.
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