Is DFA Continental Small Company I (DFCSX) a Strong Mutual Fund Pick Right Now?

If you've been stuck searching for Europe - Equity funds, consider DFA Continental Small Company I (DFCSX) as a possibility. DFCSX holds a Zacks Mutual Fund Rank of 2 (Buy), which is based on various forecasting factors like size, cost, and past performance.ObjectiveThe world of Europe - Equity mutual funds is an area filled with options, like DFCSX. Europe - Equity mutual funds tend to invest their assets in stocks across the European continent, including countries such as Great Britain, Germany, France, Italy, and Spain. European funds generally offer slower growth but can offer solid levels of stability.History of Fund/ManagerDimensional is based in Austin, TX, and is the manager of DFCSX. Since DFA Continental Small Company I made its debut in April of 1988, DFCSX has garnered more than $115.63 million in assets. A team of investment professionals is the fund's current manager.PerformanceOf course, investors look for strong performance in funds. This fund carries a 5-year annualized total return of 7.11%, and it sits in the bottom third among its category peers. Investors who prefer analyzing shorter time frames should look at its 3-year annualized total return of 18.2%, which places it in the middle 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. DFCSX's standard deviation over the past three years is 14.78% compared to the category average of 14.69%. Over the past 5 years, the standard deviation of the fund is 17.77% compared to the category average of 17.83%. This makes the fund less volatile than its peers over the past half-decade.Risk FactorsInvestors should note that the fund has a 5-year beta of 0.84, so it is likely going to be 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. DFCSX's 5-year performance has produced a negative alpha of -4.4, 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, DFCSX is a no load fund. It has an expense ratio of 0.42% compared to the category average of 0.86%. From a cost perspective, DFCSX is actually cheaper than its peers.While the minimum initial investment for the product is $0, investors should also note that there is no minimum for each subsequent investment.Fees charged by investment advisors have not been taken into consideration. Returns would be less if those were included.Bottom LineOverall, DFA Continental Small Company I ( DFCSX ) has a high Zacks Mutual Fund rank, and in conjunction with its comparatively weak performance, average downside risk, and lower fees, DFA Continental Small Company I ( DFCSX ) looks like a great potential choice for investors right now.Your research on the Europe - Equity segment doesn't have to stop here. You can check out all the great mutual fund tools we have to offer by going to www.zacks.com/funds/mutual-funds to see the additional features we offer as well for additional information. And don't forget, Zacks has all of your needs covered on the equity side too! Make sure to check out Zacks.com for more information on our screening capabilities, Rank, and all our articles as well.This article originally published on Zacks Investment Research (zacks.com).Zacks Investment ResearchWeiter zum vollständigen Artikel bei Zacks Weiter zum vollständigen Artikel bei Zacks