If investors are looking at the Mid Cap Growth fund category, make sure to pass over Eventide Gilead Fund N ETGLX. ETGLX bears a Zacks Mutual Fund Rank of 5 (Strong Sell), which is based on nine forecasting factors like size, cost, and past performance.
We note that ETGLX is a Mid Cap Growth fund, and this area is also loaded with many different options. Companies are usually considered growth stocks when they consistently report notable sales and/or earnings growth. Thus, Mid Cap Growth funds pick stocks–usually companies with a market cap between $2 billion and $10 billion–that demonstrate extensive growth opportunities for investors compared to their peers.
History of Fund/Manager
ETGLX finds itself in the Eventide family, based out of Boston, MA. The Eventide Gilead Fund N made its debut in July of 2008 and ETGLX has managed to accumulate roughly $710.61 million in assets, as of the most recently available information. The fund’s current manager, Finny Kuruvilla, has been in charge of the fund since July of 2008.
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 20.55%, and is in the top third among its category peers. But if you are looking for a shorter time frame, it is also worth looking at its 3-year annualized total return of 26.22%, 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. The standard deviation of ETGLX over the past three years is 24.04% compared to the category average of 16.83%. Over the past 5 years, the standard deviation of the fund is 21.09% compared to the category average of 14.23%. This makes the fund more volatile than its peers over the past half-decade.
With a 5-year beta of 1.17, the fund is likely to be more 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. ETGLX’s 5-year performance has produced a positive alpha of 4.55, which means managers in this portfolio are skilled in picking 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, ETGLX is a no load fund. It has an expense ratio of 1.38% compared to the category average of 1.20%. Looking at the fund from a cost perspective, ETGLX is actually more expensive than its peers.
Investors should also note that the minimum initial investment for the product is $1,000 and that each subsequent investment needs to be at $50.
Overall, Eventide Gilead Fund N ( ETGLX has a low Zacks Mutual Fund rank, and in conjunction with its comparatively strong performance, worse downside risk, and higher fees, this fund looks like a poor potential choice for investors right now.
This could just be the start of your research on ETGLXin the Mid Cap Growth 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. 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.
(Note: We are reissuing this article to correct a mistake. The original article, issued on January 8, 2021, should no longer be relied upon.)
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