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15 important things you should know about Ariel Investments ARAIX mutual fund

Updated: July 07, 2021
80
Bull Case
  • 3-year return above the benchmark
  • 5-year return above the benchmark
  • 10-year return above the benchmark
  • No sales load or distribution fees
Bear Case
  • High expense ratio

Before we start: if you’re looking for ARAIX “stock” price, you can quickly find it out by visiting Finny and typing "ARAIX quote". If you’re looking for a quick scoop on ARAIX "stock" (price chart, key stats, buy or sell analysis and holdings), go to Finny and look for "ARAIX". You’ll get all this info in one place.

Are you looking to buy or sell ARAIX? Or perhaps you’re looking for ARAIX fact sheet, and learn about its alternatives? If so, you came to the right place.

In this ARAIX mutual fund review, we’ll address key questions our readers have been asking us about this fund, above and beyond what you can find in its prospectus, and on Morningstar or Yahoo Finance.

Here is what you’ll be able to find in this review:

  • Fact Sheet: ARAIX performance, returns, expense ratio, holdings and dividend yield;
  • Analysis: ARAIX buy or sell; the pros and cons of investing in ARAIX mutual fund;
  • Alternatives: other ETFs and mutual funds you should consider as alternatives to ARAIX.

And here is the list of questions we’ll answer:

  1. Describe Ariel Investment Trust: Ariel Fund; Institutional Class Shares (ARAIX).
  2. What are ARAIX holdings?
  3. What is ARAIX performance? What are ARAIX historical returns?
  4. How many up and down years did ARAIX have historically?
  5. What is ARAIX dividend yield?
  6. What is ARAIX minimum initial investment amount?
  7. What is ARAIX expense ratio?
  8. Does ARAIX have any sales loads or 12b-1 distribution expenses?
  9. What is ARAIX tax efficiency (tax-cost ratio)?
  10. What is ARAIX beta? How would you assess ARAIX risk?
  11. What is ARAIX Sharpe ratio?
  12. What is ARAIX Finny Score? ARAIX buy or sell?
  13. What are the pros of investing in ARAIX? What are ARAIX buy reasons?
  14. What are the cons of investing in ARAIX? What are ARAIX sell reasons?

So let’s start. Scroll down to the question that interests you the most.

Fact Sheet

1. Describe Ariel Investment Trust: Ariel Fund; Institutional Class Shares (ARAIX).

The Fund seeks long-term appreciation by investing primarily in equity securities of issuers which are undervalued, but demonstrate potential for growth. The Fund invests principally in companies with market capitalizations between $1 billion and $5 billion.

2. What are ARAIX top holdings?

ARAIX has 39 stock holdings and 0 bond holdings.

The top 10 holdings represent 38.59% of total assets. Here are the top holdings:

Name Symbol % Assets
Lazard Ltd Shs A LAZ 4.20%
Mattel Inc MAT 4.20%
KKR & Co Inc Ordinary Shares KKR 4.17%
Stericycle Inc SRCL 4.14%
Mohawk Industries Inc MHK 3.88%
Envista Holdings Corp Ordinary Shares NVST 3.86%
ViacomCBS Inc Class B VIAC 3.70%
Northern Trust Corp NTRS 3.59%
Laboratory Corp of America Holdings LH 3.47%
Snap-on Inc SNA 3.38%

3. What is ARAIX performance? What are ARAIX historical returns?

ARAIX has generated the following returns:

  • 1-month return is -1.86%;
  • 3-month return is 4.72%;
  • 1-year return is 4.72%;
  • 3-year return is 13.60%;
  • 5-year return is 15.77%;
  • 10-year return is 12.18%.

4. How many up and down years did ARAIX have historically?

In the last 10 years, ARAIX had 7 up years and 3 down years.

ARAIX up and down years

5. What is ARAIX dividend yield?

ARAIX yield is 0.45%.

6. What is ARAIX minimum initial investment amount?

ARAIX minimum initial investment amount is $1.00M.

7. What is ARAIX expense ratio?

ARAIX expense ratio is 0.72%. The expense ratio of a fund is the total percentage of fund assets used for administrative, management, and all other expenses.

ARAIX expenses

8. Does ARAIX have any sales loads or 12b-1 distribution expenses?

ARAIX 12b-1 distribution fee is 0. ARAIX front-end sales load is 0. ARAIX back-end sales load is 0.

9. What is ARAIX tax efficiency (tax-cost ratio)?

  • 1-year ax cost ratio is 1.48%;
  • 3-year ax cost ratio is 1.83%.
ARAIX tax costs

10. What is ARAIX beta? How would you assess ARAIX risk?

ARAIX Beta

11. What is ARAIX Sharpe ratio?

  • 3-year Sharpe ratio is 0.55;
  • 5-year Sharpe ratio is 0.71;
  • 10-year Sharpe ratio is 0.63;
  • 15-year Sharpe ratio is 0.45.
ARAIX Sharpe ratio

Analysis

12. What is Finny Score? buy or sell?

Finny Score is 80. Our quantitative analysis shows 4 reasons to buy and 1 reason to sell it, resulting in the Finny Score of 80.

13. What are the pros of investing in ARAIX? What are ARAIX buy reasons?

The following are ARAIX strengths from our perspective:

  • ARAIX 3-year return is 13.6%, which is higher than the 3-year return of the benchmark index (Russell 2500 Value TR USD), 10.66%.
  • ARAIX 5-year return is 15.77%, which is higher than the 5-year return of the benchmark index (Russell 2500 Value TR USD), 12.26%.
  • ARAIX 10-year return is 12.18%, which is higher than the 10-year return of the benchmark index (Russell 2500 Value TR USD), 10.79%.
  • Good news: this fund does not have 12b1, front-end or back-end sales fees.

14. What are the cons of investing in ARAIX? What are ARAIX negatives?

The following are ARAIX weaknesses from our perspective:

  • ARAIX expense ratio is 0.72%, which is not negligible. Is the fund expensive to you, and does it align to your investment strategy?
In the ARAIX review, we covered ARAIX key stats (return, performance, yield, expense ratio, and holdings), buy and sell analysis, and alternative investments. If this review was helpful to you, feel free to check out other mutual fund and ETF reviews.
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