Is Eaton Vance Tax-Managed Equity Asset Allocation A (EAEAX) a good mutual fund choice right now?

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IIf you’ve been stuck looking for mutual fund equity report funds, consider Eaton Vance A Tax Managed Equity Asset Allocation (EAEAX) as a possibility. EAEAX has a Zacks mutual fund rating of 2 (buy), which is based on nine predictor factors such as size, cost, and past performance.

Fund/manager history

EAEAX is part of the Eaton Vance family of funds, a company based in Boston, MA. The Eaton Vance Tax-Managed Equity Asset Allocation A debuted in March 2002 and EAEAX has managed to accumulate approximately $401.56 million in assets, according to the most recent information available. John Croft is the current manager of the fund and has held this position since June 2015.

Performance

Clearly, what investors are looking for in these funds is strong performance relative to their peers. This particular fund has generated a 5-year annualized total return of 8.07% and is in the top third of its peers in the category. If you’re interested in shorter timeframes, don’t discount the fund’s 3-year annualized total return of 6.58%, which puts it in the middle third over this time frame.

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. The standard deviation of the EAEAX over the past three years is 18.39% from the category average of 15.99%. The standard deviation of the fund over the last 5 years is 16.45% against a category average of 14.26%. This makes the fund more volatile than its peers over the past half-decade.

Risk factors

Investors should note that the fund has a 5-year beta of 0.96, which means it is hypothetically less volatile than the market as a whole. Alpha is an additional metric to consider, since it represents the performance of a portfolio on a risk-adjusted basis relative to a benchmark, which in this case is the S&P 500. With negative alpha of -2.54, the managers of this portfolio find it difficult to choose securities that generate returns superior to those of the benchmark.

Assets

Examining 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 largely on stocks that are traded in the United States.

Currently, this mutual fund owns 93.24% equity and has a negligible amount of foreign securities assets. The turnover rate is 6%, which means that on average the fund makes fewer transactions than the average comparable fund.

Expenses

As competition intensifies in the mutual fund market, costs become increasingly important. Compared to its otherwise identical counterpart, a low cost product will perform better, all other things being equal. Thus, it is essential for investors to take a closer look at the cost parameters. In terms of fees, EAEAX is a load fund. It has an expense ratio of 1.26% compared to the category average of 0.86%. Cost-wise, EAEAX is actually more expensive than its peers.

This fund requires a minimum initial investment of $1,000, while there is no minimum for each subsequent investment.

Conclusion

Overall, Eaton Vance Tax-Managed Equity Asset Allocation A (EAEAX) has a high Zacks Mutual Fund ranking, and in conjunction with its relatively strong performance, medium downside risk, and higher fees, this fund appears to be a good potential choice for investors. now.

This might just be the start of your search for EAEAX 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. If you also want to check out our stock reports, be sure to go to Zacks.com to see all the great tools we have to offer, including our proven Zacks Ranking.

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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.

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