Is Van Eck Emerging Markets A (GBFAX) a Strong Mutual Fund Pick Right Now?

If you've been stuck searching for Non US - Equity funds, you might want to consider passing on by Van Eck Emerging Markets A (GBFAX) as a possibility. GBFAX has a Zacks Mutual Fund Rank of 4 (Sell), which is based on various forecasting factors like size, cost, and past performance.ObjectiveGBFAX is classified in the Non US - Equity area by Zacks, and this segment is full of potential. Non US - Equity funds focus their investments on companies outside of the United States, which is an important distinction since global mutual funds tend to keep a sizable portion of their portfolio based in the United States. Most of these funds will allocate across emerging and developed markets, and can often extend across cap levels too.History of Fund/ManagerGBFAX is a part of the Van Eck family of funds, a company based out of New York, NY. Since Van Eck Emerging Markets A made its debut in January of 1994, GBFAX has garnered more than $46.28 million in assets. The fund's current manager, Angus Shillington, has been in charge of the fund since December of 2009.PerformanceObviously, what investors are looking for in these funds is strong performance relative to their peers. This fund in particular has delivered a 5-year annualized total return of -0.84%, and it sits in the bottom 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 -6.88%, 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 14.96%, the standard deviation of GBFAX over the past three years is 19.07%. The standard deviation of the fund over the past 5 years is 20.37% compared to the category average of 15.99%. This makes the fund more volatile than its peers over the past half-decade.Risk FactorsInvestors should note that the fund has a 5-year beta of 0.85, so it is likely going to be less 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. With a negative alpha of -11.92, managers in this portfolio find it difficult to pick securities that generate better-than-benchmark returns.ExpensesFor investors, taking a closer look at cost-related metrics is key, since costs are increasingly important for mutual fund investing. 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, GBFAX is a load fund. It has an expense ratio of 1.59% compared to the category average of 0.98%. Looking at the fund from a cost perspective, GBFAX is actually more expensive than its peers.Investors should also note that the minimum initial investment for the product is $1,000 and that each subsequent investment needs to be at $100Fees charged by investment advisors have not been taken into considiration. Returns would be less if those were included.Bottom LineOverall, Van Eck Emerging Markets A ( GBFAX ) has a low Zacks Mutual Fund rank, and in conjunction with its comparatively weak performance, average downside risk, and higher fees, this fund looks like a somewhat weak choice for investors right now.Your research on the Non US - Equity segment doesn't have to stop here. 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