Is Goldman Sachs Emerging Markets Equity A (GEMAX) a Strong Mutual Fund Pick Right Now?
Mutual Fund Report for GEMAX
If you have been looking for Non US - Equity funds, a place to start could be Goldman Sachs Emerging Markets Equity A (GEMAX). GEMAX possesses a Zacks Mutual Fund Rank of 2 (Buy), which is based on nine forecasting factors like size, cost, and past performance.
GEMAX is classified in the Non US - Equity area by Zacks, and this segment is full of potential. Non US - Equity funds focus their investments on companies outside of the United States, which is an important distinction since global mutual funds tend to keep a sizable portion of their portfolio based in the United States. Most of these funds will allocate across emerging and developed markets, and can often extend across cap levels too.
History of Fund/Manager
Goldman Sachs is based in New York, NY, and is the manager of GEMAX. Goldman Sachs Emerging Markets Equity A made its debut in December of 1997, and since then, GEMAX has accumulated about $285.79 million in assets, per the most up-to-date date available. Basak Yavuz is the fund's current manager and has held that role since February of 2015.
Obviously, what investors are looking for in these funds is strong performance relative to their peers. This fund in particular has delivered a 5-year annualized total return of 13.68%, 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 13.3%, 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. Compared to the category average of 15.77%, the standard deviation of GEMAX over the past three years is 19.93%. The fund's standard deviation over the past 5 years is 17.15% compared to the category average of 13.08%. This makes the fund more volatile than its peers over the past half-decade.
The fund has a 5-year beta of 0.79, so investors should note that it is hypothetically 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 positive alpha of 0.45. This means that managers in this portfolio are skilled in picking securities that generate better-than-benchmark returns.
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, GEMAX is a load fund. It has an expense ratio of 1.37% compared to the category average of 1.18%. From a cost perspective, GEMAX is actually more expensive than its peers.
This fund requires a minimum initial investment of $1,000, and each subsequent investment should be at least $50.
Overall, Goldman Sachs Emerging Markets Equity A ( GEMAX ) has a high Zacks Mutual Fund rank, and in conjunction with its comparatively strong performance, average downside risk, and higher fees, Goldman Sachs Emerging Markets Equity A ( GEMAX ) looks like a good potential choice for investors right now.
Your research on the Non US - Equity 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. 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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