Is Harbor Capital Appreciation Retirement (HNACX) a good mutual fund choice right now?

Looking for a mutual fund equity report fund? Starting with Harbor Capital Appreciation Retirement (HNACX) is a possibility. HNACX carries 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

HNACX is part of the Chicago, IL-based Harbor Funds family of funds. Harbor Capital Appreciation Retirement debuted in March 2016. Since then, HNACX has accumulated assets of approximately $11.39 billion, according to the most recent information available. The current fund manager is a team of investment professionals.

Performance

Of course, investors are looking for strong performance in funds. HNACX has a 5-year annualized total return of 20.32% and ranks in the top third among its peers in the category. If you’re interested in shorter timeframes, don’t overlook the fund’s 3-year annualized total return of 20.58%, which puts it in the middle third over that 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 HNACX over the past three years is 22.99% compared to the category average of 15.82%. The fund’s standard deviation over the last 5 years is 20.21% compared to the category average of 14.09%. This makes the fund more volatile than its peers over the past half-decade.

Risk factors

Investors should keep in mind beta, an important way to measure a mutual fund‘s risk relative to the market as a whole. HNACX has a 5-year beta of 1.13, which means it is likely to be more volatile than the market average. Alpha is an additional metric to consider, as 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. HNACX generated alpha positive over the past five years by 2.51 , demonstrating that the managers of this portfolio know how to choose securities that generate higher returns than those of the benchmark index.

Assets

Exploring 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, this mutual fund owns 86.34% shares, which have an average market capitalization of $551.69 billion. The fund has the highest exposure to the following market sectors:

  1. Technology

  2. Retail business

The turnover rate is 48%, which means that this fund trades less than its comparable peers.

Expenses

For investors, it is essential to take a closer look at the cost parameters, 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, HNACX is a no-load fund. It has an expense ratio of 0.57% compared to the category average of 1%. Looking at the fund from a cost perspective, HNACX is actually cheaper than its peers.

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

Conclusion

Overall, Harbor Capital Appreciation Retirement (HNACX) has a high ranking in the Zacks Mutual Fund, and in conjunction with its relatively strong performance, worse downside risk and lower fees, Harbor Capital Appreciation Retirement (HNACX ) seems like a good potential choice for investors. now.

Don’t stop here for your fund research on the Mutual Fund Stock Report. We also have a lot more on our site to help you find the best possible fund for your portfolio. Be sure to check out www.zacks.com/funds/mutual-funds for more insight into the world of funds, and feel free to compare HNACX to its peers for more insight. 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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Dolores W. Simon