Yahoo Finance Is ECMMX a Strong Bond Fund Right Now?
There are plenty of choices in the Mutual Fund Bond category, but where should you start your research? Well, one fund that may not be worth investigating is Eaton Vance MA Municipals C (ECMMX). ECMMX holds a Zacks Mutual Fund Rank of 4 (Sell), which is based on various forecasting factors like size, cost, and past performance.
History of Fund/Manager
ECMMX finds itself in the Eaton Vance family, based out of Boston, MA. Since Eaton Vance MA Municipals C made its debut in July of 2006, ECMMX has garnered more than $4.03 million in assets. Robert B. MacIntosh is the fund's current manager and has held that role since July of 2006.
Performance
Of course, investors look for strong performance in funds. This fund has delivered a 5-year annualized total return of 0.18%, and is in the bottom 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 -1.27%, which places it in the bottom 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 12.38%, the standard deviation of ECMMX over the past three years is 6.41%. Over the past 5 years, the standard deviation of the fund is 5.51% compared to the category average of 11.98%. This makes the fund less volatile than its peers over the past half-decade.
With a beta of 0.94, this fund is less volatile than a broad market index of fixed income securities. Taking this into account, ECMMX has a negative alpha of -1.84, which measures performance on a risk-adjusted basis.
Ratings
Investors should also consider a bond's rating, which is a grade ( 'AAA' to 'D' ) given to a bond that indicates its credit quality. With this letter scale in mind, ECMMX has 66.51% in high quality bonds rated at least 'AA' or higher, while 30.52% are of medium quality, with ratings of 'A' to 'BBB'. The fund has an average quality of AA, and focuses on high quality securities.
Expenses
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, ECMMX is a no load fund. It has an expense ratio of 1.43% compared to the category average of 0.78%. From a cost perspective, ECMMX 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 has no minimum amount.
Bottom Line
Overall, Eaton Vance MA Municipals C ( ECMMX ) has a low Zacks Mutual Fund rank, and in conjunction with its comparatively weak performance, better downside risk, and higher fees, Eaton Vance MA Municipals C ( ECMMX ) looks like a somewhat weak choice for investors right now.
For additional information on this product, or to compare it to other mutual funds in the Mutual Fund Bond, make sure to go to www.zacks.com/funds/mutual-funds for additional information. If you are more of a stock investor, make sure to also check out our Zacks Rank, and our full suite of tools we have available for novice and professional investors alike.
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