Is Delaware Healthcare A (DLHAX) a Smart Choice for Mutual Funds Currently?
AInvestors hoping to find a Sector – Health fund might consider bypassing Delaware Healthcare A (DLHAX). DLHAX carries a Zacks Mutual Fund ranking of 5 (strong sell), which is based on nine forecasting factors such as size, cost and past performance.
Zacks ranks DLHAX in the Sector – Healthcare category, a segment full of options. Sector – Healthcare mutual funds provide investors with a focus on the healthcare industry, one of the most important sectors of the US economy. These funds can include everything from pharmaceutical companies to medical device manufacturers and for-profit hospitals.
Fund / manager history
Delaware Investments is based in Philadelphia, Pennsylvania, and is the manager of DLHAX. Delaware Healthcare A debuted in September 2007, and since then DLHAX has accumulated approximately $ 346.02 million in assets, according to the most recent date available. The fund is currently managed by Liu Er Chen who has been in charge of the fund since September 2007.
Obviously, what investors are looking for in these funds is a strong performance relative to their peers. This fund has a 5-year total annualized return of 14.08% and is in the top third of its category. Investors who prefer to analyze shorter time frames should look at its 3-year annualized total return of 9.19%, which puts it in the top third over that time frame.
When looking at the performance of a fund, it is also important to note the standard deviation of returns. The lower the standard deviation, the less volatility the fund experiences. Over the past three years, the standard deviation of DLHAX is 18.83%, compared to the category average of 16.01%. Over the past 5 years, the fund’s standard deviation is 15.83% compared to the category average of 13.56%. This makes the fund more volatile than its peers over the past half decade.
Investors should not forget about beta, an important way to measure the risk of a mutual fund in relation to the market as a whole. DLHAX has a 5-year beta of 0.82 which means it is likely to be less volatile than the market average. Since alpha represents the performance of a portfolio on a risk-adjusted basis relative to a benchmark, which is the S&P 500 in this case, it is worth paying attention to this metric as well. Over the past 5 years, the fund has a negative alpha of -0.3. This means that the managers of this portfolio find it difficult to select stocks that generate higher returns than the benchmark index.
As competition intensifies in the mutual fund market, the costs become more and more important. Compared to its otherwise identical counterpart, a low cost product will outperform, all other things being equal. Thus, it is vital for investors to take a closer look at cost measures. In terms of fees, DLHAX is a dependent fund. It has an expense ratio of 1.23% compared to the category average of 1.32%. Looking at the fund from a cost perspective, DLHAX is actually less expensive than its peers.
Investors should be aware that with this product, the minimum initial investment is $ 1,000; each subsequent investment must be at least $ 100.
Overall, Delaware Healthcare A (DLHAX) has a low Zacks Mutual Fund ranking, and in conjunction with its comparatively strong performance, medium downside risk, and lower fees, Delaware Healthcare A (DLHAX) appears to be a choice somewhere. bit low for investors right now.
For more information on the Sector – Health sector of the mutual fund world, be sure to visit www.zacks.com/funds/mutual-funds. There you can learn more about the ranking process and dive even deeper into DLHAX for additional information. Want to know more ? We have a comprehensive suite of equity tools you can use to find the best choices for your portfolio, no matter what type of investor you are.
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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.