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Is DFA Continental Small Company I (DFCSX) a Strong Mutual Fund Pick Right Now?
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Europe - Equity fund seekers should consider taking a look at DFA Continental Small Company I (DFCSX - Free Report) . DFCSX possesses a Zacks Mutual Fund Rank of 2 (Buy), which is based on various forecasting factors like size, cost, and past performance.
Objective
DFCSX is one of many Europe - Equity funds to pick from, and generally, European funds offer slow growth that can provide great levels of stability. Europe - Equity mutual funds invest in stocks across the vast European continent, including Great Britain, Germany, France, Italy, and Spain.
History of Fund/Manager
Dimensional is based in Austin, TX, and is the manager of DFCSX. DFA Continental Small Company I made its debut in April of 1988, and since then, DFCSX has accumulated about $766.82 million in assets, per the most up-to-date date available. Jed S. Fogdall is the fund's current manager and has held that role since February of 2010.
Performance
Obviously, what investors are looking for in these funds is strong performance relative to their peers. DFCSX has a 5-year annualized total return of 13.89% and is in the middle third among its category peers. Investors who prefer analyzing shorter time frames should look at its 3-year annualized total return of 9.1%, 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. Over the past three years, DFCSX's standard deviation comes in at 20.06%, compared to the category average of 19.7%. The fund's standard deviation over the past 5 years is 20.02% compared to the category average of 20.98%. This makes the fund less volatile than its peers over the past half-decade.
Risk Factors
Investors should not forget about beta, an important way to measure a mutual fund's risk compared to the market as a whole. DFCSX has a 5-year beta of 0.96, which means it is likely to be less 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. DFCSX has generated a negative alpha over the past five years of -0.37, demonstrating that managers in this portfolio find it difficult to pick securities that generate better-than-benchmark returns.
Expenses
For investors, taking a closer look at cost-related metrics is key, since costs are increasingly important for mutual fund investing. Competition is heating up in this space, and a lower cost product will likely outperform its otherwise identical counterpart, all things being equal. In terms of fees, DFCSX is a no load fund. It has an expense ratio of 0.12% compared to the category average of 0.96%. Looking at the fund from a cost perspective, DFCSX is actually cheaper than its peers.
Investors should also note that the minimum initial investment for the product is $0 and that each subsequent investment has no minimum amount.
Fees charged by investment advisors have not been taken into considiration. Returns would be less if those were included.
Bottom Line
Overall, DFA Continental Small Company I ( DFCSX ) has a high Zacks Mutual Fund rank, and in conjunction with its comparatively similar performance, average downside risk, and lower fees, DFA Continental Small Company I ( DFCSX ) looks like a great potential choice for investors right now.
This could just be the start of your research on DFCSXin the Europe - Equity category. Consider going to www.zacks.com/funds/mutual-funds for additional information about this fund, and all the others that we rank as well for additional information. For analysis of the rest of your portfolio, make sure to visit Zacks.com for our full suite of tools which will help you investigate all of your stocks and funds in one place.
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Is DFA Continental Small Company I (DFCSX) a Strong Mutual Fund Pick Right Now?
Europe - Equity fund seekers should consider taking a look at DFA Continental Small Company I (DFCSX - Free Report) . DFCSX possesses a Zacks Mutual Fund Rank of 2 (Buy), which is based on various forecasting factors like size, cost, and past performance.
Objective
DFCSX is one of many Europe - Equity funds to pick from, and generally, European funds offer slow growth that can provide great levels of stability. Europe - Equity mutual funds invest in stocks across the vast European continent, including Great Britain, Germany, France, Italy, and Spain.
History of Fund/Manager
Dimensional is based in Austin, TX, and is the manager of DFCSX. DFA Continental Small Company I made its debut in April of 1988, and since then, DFCSX has accumulated about $766.82 million in assets, per the most up-to-date date available. Jed S. Fogdall is the fund's current manager and has held that role since February of 2010.
Performance
Obviously, what investors are looking for in these funds is strong performance relative to their peers. DFCSX has a 5-year annualized total return of 13.89% and is in the middle third among its category peers. Investors who prefer analyzing shorter time frames should look at its 3-year annualized total return of 9.1%, 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. Over the past three years, DFCSX's standard deviation comes in at 20.06%, compared to the category average of 19.7%. The fund's standard deviation over the past 5 years is 20.02% compared to the category average of 20.98%. This makes the fund less volatile than its peers over the past half-decade.
Risk Factors
Investors should not forget about beta, an important way to measure a mutual fund's risk compared to the market as a whole. DFCSX has a 5-year beta of 0.96, which means it is likely to be less 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. DFCSX has generated a negative alpha over the past five years of -0.37, demonstrating that managers in this portfolio find it difficult to pick securities that generate better-than-benchmark returns.
Expenses
For investors, taking a closer look at cost-related metrics is key, since costs are increasingly important for mutual fund investing. Competition is heating up in this space, and a lower cost product will likely outperform its otherwise identical counterpart, all things being equal. In terms of fees, DFCSX is a no load fund. It has an expense ratio of 0.12% compared to the category average of 0.96%. Looking at the fund from a cost perspective, DFCSX is actually cheaper than its peers.
Investors should also note that the minimum initial investment for the product is $0 and that each subsequent investment has no minimum amount.
Fees charged by investment advisors have not been taken into considiration. Returns would be less if those were included.
Bottom Line
Overall, DFA Continental Small Company I ( DFCSX ) has a high Zacks Mutual Fund rank, and in conjunction with its comparatively similar performance, average downside risk, and lower fees, DFA Continental Small Company I ( DFCSX ) looks like a great potential choice for investors right now.
This could just be the start of your research on DFCSXin the Europe - Equity category. Consider going to www.zacks.com/funds/mutual-funds for additional information about this fund, and all the others that we rank as well for additional information. For analysis of the rest of your portfolio, make sure to visit Zacks.com for our full suite of tools which will help you investigate all of your stocks and funds in one place.