Yahoo Finance Is Hartford Small Company HLS IA (HIASX) a Strong Mutual Fund Pick Right Now?
If you've been stuck searching for Small Cap Growth funds, consider Hartford Small Company HLS IA (HIASX) as a possibility. HIASX possesses a Zacks Mutual Fund Rank of 2 (Buy), which is based on various forecasting factors like size, cost, and past performance.
Objective
HIASX is one of many different Small Cap Growth funds to choose from. Small Cap Growth mutual funds build portfolios around stocks with markets caps under $2 billion and large growth opportunities. Additionally, these portfolios typically highlight smaller companies in promising markets and industries.
History of Fund/Manager
HIASX finds itself in the Hartford family, based out of Woodbury, MN. Hartford Small Company HLS IA made its debut in December of 2001, and since then, HIASX has accumulated about $387.95 million in assets, per the most up-to-date date available. The fund's current manager, Ranjit Ramachandran, has been in charge of the fund since February of 2020.
Performance
Of course, investors look for strong performance in funds. This fund in particular has delivered a 5-year annualized total return of 8.96%, and is in the middle third among its category peers. Investors who prefer analyzing shorter time frames should look at its 3-year annualized total return of -5.04%, which places it in the bottom 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. HIASX's standard deviation over the past three years is 22.1% compared to the category average of 18.23%. The standard deviation of the fund over the past 5 years is 24.16% compared to the category average of 19.49%. This makes the fund more volatile than its peers over the past half-decade.
Risk Factors
Investors should not forget about beta, an important way to measure a mutual fund's risk compared to the market as a whole. HIASX has a 5-year beta of 1.15, which means it is likely to be more volatile than the market average. Because alpha represents a portfolio's performance on a risk-adjusted basis relative to a benchmark, which is the S&P 500 in this case, one should pay attention to this metric as well. HIASX's 5-year performance has produced a negative alpha of -6.75, which means managers in this portfolio find it difficult to pick securities that generate better-than-benchmark returns.
Holdings
Investigating the equity 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 if there are any inherent biases in their approach. For this particular fund, the focus is largely on equities that are traded in the United States.
Right now, 86.37% of this mutual fund's holdings are stocks, which have an average market capitalization of $6.07 billion. The fund has the heaviest exposure to the following market sectors:
Technology
Health
Industrial Cyclical
Non-Durable
Turnover is about 39%, so those in charge of the fund make fewer trades than its comparable peers.
Expenses
As competition heats up in the mutual fund market, costs become increasingly important. Compared to its otherwise identical counterpart, a low-cost product will be an outperformer, all other things being equal. Thus, taking a closer look at cost-related metrics is vital for investors. In terms of fees, HIASX is a no load fund. It has an expense ratio of 0.80% compared to the category average of 1.06%. From a cost perspective, HIASX is actually cheaper than its peers.
Investors should also note, that according to our data, the fund does not have any minimum investment requirements.
Fees charged by investment advisors have not been taken into considiration. Returns would be less if those were included.
Bottom Line
Overall, Hartford Small Company HLS IA ( HIASX ) has a high Zacks Mutual Fund rank, and in conjunction with its comparatively similar performance, average downside risk, and lower fees, this fund looks like a good potential choice for investors right now.
For additional information on the Small Cap Growth area of the mutual fund world, make sure to check out www.zacks.com/funds/mutual-funds. There, you can see more about the ranking process, and dive even deeper into HIASX too for additional information. If you are more of a stock investor, make sure to also check out our Zacks Rank, and our full suite of tools we have available for novice and professional investors alike.
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