MFS Value R6 (MEIKX) shows potential but has mixed performance metrics to consider
MEIKX is in the Large Cap Value category, which is popular among investors looking for steady income. These funds invest in big companies with market caps over $10 billion, but their stock prices often don’t reflect their true value. This can lead to lower price-to-earnings ratios and higher dividends, but growth can be slow since these companies are usually in stable industries.
MFS, based in Boston, manages MEIKX, which launched in June 2012. The fund has grown to about $19.85 billion in assets. Nevin P. Chitkara has been managing it since its inception.
When it comes to performance, MEIKX has a 5-year annualized return of 8.34%, but it’s in the bottom third of its peers. If you look at a shorter time frame, its 3-year return is 4.55%, which is also on the lower end.
Keep in mind that returns might not include all expenses, and any fees not accounted for could lower those returns. The fund’s standard deviation over the past three years is 15.53%, which is higher than the category average, indicating more volatility.
In terms of risk, MEIKX has a 5-year beta of 0.88, suggesting it’s less volatile than the market. However, it has a negative alpha of -4.15, meaning it struggles to outperform the S&P 500.
Costs matter too, especially with so many options out there. MEIKX is a no-load fund with an expense ratio of 0.44%, which is lower than the category average of 0.95%. Plus, there’s no minimum for initial or subsequent investments.
In summary, despite its mixed performance and average risk, MFS Value R6 (MEIKX) has a solid Zacks Mutual Fund rank, making it a potential pick for investors.
If you’re curious about more options in the Large Cap Value space, check out Zacks’ mutual fund tools for additional insights. And if stocks are more your thing, don’t miss their Zacks Rank for stock picks.
