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If you've been stuck searching for Global - Equity funds, consider Motley Fool Independence Fund (FOOLX) as a possibility. FOOLX carries a Zacks Mutual Fund Rank of 1 (Strong Buy), which is based on nine forecasting factors like size, cost, and past performance.
Objective
We note that FOOLX is a Global - Equity option, an investment area loaded with different options. While Global - Equity mutual funds invest their assets in large markets--think the U.S., Europe, and Japan--they aren't limited by geography. Their investment technique is one that leverages the global economy in order to offer stable returns.
History of Fund/Manager
Motley Fool is based in Providence, RI, and is the manager of FOOLX. Motley Fool Independence Fund debuted in August of 2009. Since then, FOOLX has accumulated assets of about $383.81 million, according to the most recently available information. The fund is currently managed by a team of investment professionals.
Performance
Of course, investors look for strong performance in funds. This fund has delivered a 5-year annualized total return of 10.92%, and it sits 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 17.37%, 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. FOOLX's standard deviation over the past three years is 13.53% compared to the category average of 9.99%. Over the past 5 years, the standard deviation of the fund is 13.17% compared to the category average of 10.46%. This makes the fund more volatile than its peers over the past half-decade.
Risk Factors
It's always important to be aware of the downsides to any future investment, so one should not discount the risks that come with this segment.
Even still, the fund has a 5-year beta of 1.01, so investors should note that it is hypothetically as volatile as the market at large. 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. FOOLX has generated a negative alpha over the past five years of -0.48, demonstrating that managers in this portfolio find it difficult to pick securities that generate better-than-benchmark returns.
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, FOOLX is a no load fund. It has an expense ratio of 1.06% compared to the category average of 1.13%. Looking at the fund from a cost perspective, FOOLX is actually cheaper than its peers.