Having trouble finding a Sector - Energy fund? BNY Mellon Natural Resources A (DNLAX) is a potential starting point. DNLAX carries a Zacks Mutual Fund Rank of 1 (Strong Buy), which is based on various forecasting factors like size, cost, and past performance.
We classify DNLAX in the Sector - Energy category, an area that is rife with possible choices. Throughout the massive global energy sector, Sector - Energy mutual funds hold a wide range of quickly changing and vitally important industries. While oil and gas comprise the bulk of the exposure, carbon-based fuels will be the biggest group of assets in these funds, though clean energy is starting to pick up steam.
DNLAX finds itself in the BNY Mellon family, based out of New York, NY. BNY Mellon Natural Resources A debuted in October of 2003. Since then, DNLAX has accumulated assets of about $135.84 million, according to the most recently available information. David Intoppa is the fund's current manager and has held that role since November of 2020.
Of course, investors look for strong performance in funds. DNLAX has a 5-year annualized total return of 18.48% 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 4.56%, which places it in the top third during this time-frame.
It is important to note that the product's returns may not reflect all its expenses. Any fees not reflected would lower the returns. Total returns do not reflect the fund's [%] sale charge. If sales charges were included, total returns would have been lower.
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 16.17%, the standard deviation of DNLAX over the past three years is 26.12%. Looking at the past 5 years, the fund's standard deviation is 27.6% compared to the category average of 17.92%. This makes the fund more volatile than its peers over the past half-decade.
With a 5-year beta of 1.04, 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. DNLAX's 5-year performance has produced a positive alpha of 3.16, 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, DNLAX is a load fund. It has an expense ratio of 1.16% compared to the category average of 0.99%. From a cost perspective, DNLAX is actually more expensive than its peers.
This fund requires a minimum initial investment of $1,000, and each subsequent investment should be at least $100.
Fees charged by investment advisors have not been taken into considiration. Returns would be less if those were included.
Overall, even with its comparatively strong performance, worse downside risk, and higher fees, BNY Mellon Natural Resources A ( DNLAX ) has a high Zacks Mutual Fund rank, and therefore looks a good potential choice for investors right now.
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