IIf you’re looking for the Mutual Fund Equity Report fund category, a potential startup might be the Azzad Ethical Mid Cap Fund (ADJEX). ADJEX holds a Zacks mutual fund ranking of 3 (Hold), which is based on nine predictive factors such as size, cost and past performance.
ADJEX is found in the Azzad family, based in Falls Church, Virginia. Azzad Ethical Mid Cap Fund debuted in December 2000. Since then, ADJEX has accumulated assets of approximately $127.95 million, according to the most recent information available. The fund is currently managed by a team of investment professionals.
Of course, investors are looking for strong performance in funds. This particular fund has generated a 5-year annualized total return of 13.03% and is in the bottom third of its peers in the category. Investors who prefer to analyze shorter time frames should look at its 3-year annualized total return of 12.65%, which puts it in the bottom third over this period.
When looking at a fund’s performance, it’s also important to note the standard deviation of returns. The lower the standard deviation, the less volatility the fund experiences. Compared to the category average of 22.27%, ADJEX’s standard deviation over the last three years is 20.6%. The fund’s standard deviation over the last 5 years is 18.4% compared to the category average of 19.84%. This makes the fund less volatile than its peers over the past half-decade.
Investors should keep in mind beta, an important way to measure a mutual fund’s risk relative to the market as a whole. ADJEX has a 5-year beta of 1.06, which means it is likely to be more 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 also worth paying attention to this measure. ADJEX has generated a negative alpha of -2.32 over the past five years, demonstrating that managers in this portfolio struggle to pick stocks that generate returns above the benchmark.
Investigating the stock holdings of a mutual fund is also a valuable exercise. This can show us how the manager is applying their stated methodology, as well as whether there are any inherent biases in their approach. For this particular fund, the focus is primarily on stocks that are traded in the United States.
Currently, 75.05% of this mutual fund’s holdings are in stocks, with an average market capitalization of $31.78 billion. The fund has the highest exposure to the following market sectors:
For investors, it is essential to take a closer look at cost-related metrics, as costs are increasingly important for mutual fund investments. 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, ADJEX is a zero-cost fund. It has an expense ratio of 0.99% compared to the category average of 1.15%. Looking at the fund from a cost perspective, ADJEX is actually cheaper than its peers.
This fund requires a minimum initial investment of $1,000, and each subsequent investment must be at least $50.
Overall, Azzad Ethical Mid Cap Fund (ADJEX) has a neutral rating from Zacks Mutual Fund, and in conjunction with its relatively poor performance, medium downside risk, and lower fees, this fund currently looks like a reasonable choice. little mean for investors.
This might just be the start of your search for ADJEX in the Mutual Fund Stock Report category. Consider going to www.zacks.com/funds/mutual-funds for more information on this fund, and all the others we rank for additional information as well. Zacks provides a full suite of tools to help you analyze your portfolio – funds and stocks – in the most efficient way possible.
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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.