Is Spirit of America Energy A (SOAEX) a Strong Mutual Fund Pick Right Now? – November 25, 2022

If you were looking for Equity Fund Reference funds, you wouldn’t be wise to start your search with Spirit of America Energy A (SOAEX Free report). SOAEX has a Zacks Fund Rank of 5 (Strong Sell), which is based on nine predictors such as size, cost and past performance.

Fund/Manager History

SOAEX is part of the Spirit of America family, headquartered in Syosset, New York. Spirit of America Energy A made its debut in July 2014. Since then, SOAEX has accumulated about $226.64 million in assets, according to the latest information available. Douglas Revelo is the current manager of the fund and has held that role since January 2020.

Implementation

Of course, investors look for strong performance in funds. This fund has achieved a five-year annualized total return of 2.1%, ranking in the bottom third among peers in its category. Investors who prefer to analyze shorter time frames should look at its three-year annualized total return of 6.05%, which places it in the bottom third during that time frame.

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When looking at the performance of a mutual fund, it is also important to note the standard deviation of the returns. The smaller the standard deviation, the less volatility the fund faces. Compared to the category average of 49.45%, SOAEX’s standard deviation over the past three years is 38%. The fund’s standard deviation over the last 5 years is 31.66% versus the category average of 33.02%. This makes the fund less volatile than its peers over the past half decade.

Risk factors

With a 5-year beta of 1.24, the fund is likely to be more volatile than the market average. Alpha is an additional metric to consider as it represents a portfolio’s performance on a risk-adjusted basis relative to a benchmark, which in this case is the S&P 500. Over the past 5 years, the fund has a negative alpha -6.36. This means that managers in this portfolio have a hard time picking stocks that produce better returns than the benchmark.

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Expenses

Cost is increasingly important to mutual fund investing, and particularly as competition intensifies in this market. And all things being equal, a lower-cost product will outperform its otherwise identical counterpart, so a closer look at these metrics is key for investors. In terms of fees, SOAEX is a load fund. It has an expense ratio of 1.29% versus the category average of 1.46%. So SOAEX is actually cheaper than its peers in terms of cost.

Investors should also note that the minimum initial investment for the product is $500 and each subsequent investment must be $50.

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Conclusion

Overall, Spirit of America Energy A (SOAEX) has a low Zacks Mutual Fund Rank, and combined with its relatively weak yield, average downside risk, and lower fees, Spirit of America Energy A (SOAEX) looks like a somewhat weak choice for investors at this time.

Don’t stop here for your research on Mutual Fund Equity Report funds. We also have a lot more on our site to help you find the best possible fund for your portfolio. Be sure to visit www.zacks.com/funds/mutual-funds for more information on the mutual fund world and feel free to compare SOAEX to its peers for additional information. Zacks provides a full suite of tools to help you analyze your portfolio – both funds and stocks – in the most efficient way possible.



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