Is ProFunds UltraEmerging Markets Investor (UUPIX) a Strong Mutual Fund Pick Right Now?
Mutual Fund Report for UUPIX
If you've been stuck searching for Non US - Equity funds, you might want to consider passing on by ProFunds UltraEmerging Markets Investor (UUPIX) as a possibility. UUPIX has a Zacks Mutual Fund Rank of 5 (Strong Sell), which is based on nine forecasting factors like size, cost, and past performance.
UUPIX 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
ProFunds is based in Columbus, OH, and is the manager of UUPIX. ProFunds UltraEmerging Markets Investor debuted in April of 2006. Since then, UUPIX has accumulated assets of about $17.69 million, according to the most recently available information. Scott Hanson is the fund's current manager and has held that role since August of 2016.
Investors naturally seek funds with strong performance. This fund has delivered a 5-year annualized total return of 8.5%, and is in the middle 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 4.67%, 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. Over the past three years, UUPIX's standard deviation comes in at 45.62%, compared to the category average of 26.47%. The standard deviation of the fund over the past 5 years is 40.05% compared to the category average of 22.19%. This makes the fund more volatile than its peers over the past half-decade.
With a 5-year beta of 1.77, 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. The fund has produced a negative alpha over the past 5 years of -12.13, which shows that managers in this portfolio find it difficult to pick securities that generate better-than-benchmark returns.
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, UUPIX is a no load fund. It has an expense ratio of 1.77% compared to the category average of 1.18%. From a cost perspective, UUPIX is actually more expensive than its peers.
This fund requires a minimum initial investment of $15,000, while there is no minimum for each subsequent investment.
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.
Don't stop here for your research on Non US - Equity funds. We also have plenty more on our site in order to help you find the best possible fund for your portfolio. Make sure to check out www.zacks.com/funds/mutual-funds for more information about the world of funds, and feel free to compare UUPIX to its peers as well for additional information. Want to learn even more? We have a full suite of tools on stocks that you can use to find the best choices for your portfolio too, no matter what kind of investor you are.
Infrastructure Stock Boom to Sweep America
A massive push to rebuild the crumbling U.S. infrastructure will soon be underway. It’s bipartisan, urgent, and inevitable. Trillions will be spent. Fortunes will be made.
The only question is “Will you get into the right stocks early when their growth potential is greatest?”
Zacks has released a Special Report to help you do just that, and today it’s free. Discover 7 special companies that look to gain the most from construction and repair to roads, bridges, and buildings, plus cargo hauling and energy transformation on an almost unimaginable scale.Download FREE: How to Profit from Trillions on Spending for Infrastructure >>
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
Get Your Free (UUPIX): Fund Analysis Report
To read this article on Zacks.com click here.
Zacks Investment Research