If you have been looking for Sector – Energy funds, it would not be wise to start your search with BNY Mellon Natural Resources A (DNLAX). DNLAX bears a Zacks Mutual Fund Rank of 5 (Strong Sell), which is based on various forecasting factors like size, cost, and past performance.
DNLAX is one of many Sector – Energy funds to choose from. Sector – Energy mutual funds are comprised of various changing and hugely important industries throughout the massive global energy sector. Even though clean energy is beginning to pick up steam, oil and gas companies have the highest exposure, but carbon-based fuels will be the biggest group of assets in these funds.
DNLAX finds itself in the BNY Mellon family, based out of New York, NY. BNY Mellon Natural Resources A debuted in October of 2003. Since then, DNLAX has accumulated assets of about $130.61 million, according to the most recently available information. The fund’s current manager, David Intoppa, has been in charge of the fund since November of 2020.
Investors naturally seek funds with strong performance. This fund in particular has delivered a 5-year annualized total return of 18.99%, and it sits in the top third among its category peers. But if you are looking for a shorter time frame, it is also worth looking at its 3-year annualized total return of 12.62%, 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. DNLAX’s standard deviation over the past three years is 20.22% compared to the category average of 12.31%. Over the past 5 years, the standard deviation of the fund is 23.97% compared to the category average of 14.54%. This makes the fund more volatile than its peers over the past half-decade.
The fund has a 5-year beta of 0.81, so investors should note that it is hypothetically less volatile than the market at large. 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. DNLAX has generated a positive alpha over the past five years of 8.27, demonstrating that managers in this portfolio are skilled in picking securities that generate better-than-benchmark returns.