Is American Funds SMALLCAP World A (SMCWX) a Strong Mutual Fund Pick Right Now?

On the lookout for a Global - Equity fund? Starting with American Funds SMALLCAP World A (SMCWX) should not be a possibility at this time. SMCWX has a Zacks Mutual Fund Rank of 5 (Strong Sell), which is based on various forecasting factors like size, cost, and past performance.ObjectiveZacks categorizes SMCWX as Global - Equity, which is a segment packed with options. Global - Equity mutual funds invest in large markets like the U.S., Europe, and Japan, and operate with very few geographical limitations. They also provide an investment technique that leverages the diverse nature of the global economy in the hopes of providing a stable return.History of Fund/ManagerAmerican Funds is based in Los Angeles, CA, and is the manager of SMCWX. American Funds SMALLCAP World A made its debut in April of 1990, and since then, SMCWX has accumulated about $28.69 billion in assets, per the most up-to-date date available. The fund is currently managed by a team of investment professionals.PerformanceObviously, what investors are looking for in these funds is strong performance relative to their peers. This fund has delivered a 5-year annualized total return of 7.18%, and it sits in the middle third among its category peers. If you're interested in shorter time frames, do not dismiss looking at the fund's 3 -year annualized total return of -6.1%, 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. Compared to the category average of 14.71%, the standard deviation of SMCWX over the past three years is 19.57%. The fund's standard deviation over the past 5 years is 21.34% compared to the category average of 15.58%. This makes the fund more volatile than its peers over the past half-decade.Risk FactorsThe fund has a 5-year beta of 1.06, so investors should note that it is hypothetically more volatile than the market at large. Alpha is an additional metric to take into consideration, since it represents a portfolio's performance on a risk-adjusted basis relative to a benchmark, which in this case, is the S&P 500. SMCWX's 5-year performance has produced a negative alpha of -7.25, which means managers in this portfolio find it difficult to pick securities that generate better-than-benchmark returns.ExpensesAs 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, SMCWX is a load fund. It has an expense ratio of 1.05% compared to the category average of 0.97%. From a cost perspective, SMCWX is actually more expensive than its peers.Investors should also note that the minimum initial investment for the product is $250 and that each subsequent investment needs to be at $50Fees charged by investment advisors have not been taken into considiration. Returns would be less if those were included.Bottom LineOverall, American Funds SMALLCAP World A ( SMCWX ) has a low Zacks Mutual Fund rank, and in conjunction with its comparatively similar performance, worse downside risk, and higher fees, this fund looks like a somewhat weak choice for investors right now.Your research on the Global - Equity segment doesn't have to stop here. 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