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14 important things you should know about Ariel Investments ARFFX mutual fund

Updated: July 07, 2021
14
Bull Case
  • 5-year return above the benchmark
Bear Case
  • Low net assets
  • 3-year return below the benchmark
  • 10-year return below the benchmark
  • 15-year return below the benchmark
  • High expense ratio
  • Sales load and/or distribution fees

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

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

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

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

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

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

Fact Sheet

1. Describe Ariel Investment Trust: Ariel Focus Fund; Investor Class Shares (ARFFX).

The Fund seeks long-term capital appreciation by investing in undervalued companies that show strong potential for growth. The Fund invests primarily in the stocks of companies with market capitalizations generally in excess of $10 billion at the time of initial purchase.

2. What are ARFFX top holdings?

ARFFX has 29 stock holdings and 0 bond holdings.

The top 10 holdings represent 50.60% of total assets. Here are the top holdings:

Name Symbol % Assets
Oracle Corp ORCL 5.65%
Snap-on Inc SNA 5.64%
ViacomCBS Inc Class B VIAC 5.56%
Zimmer Biomet Holdings Inc ZBH 5.44%
Lazard Ltd Shs A LAZ 4.97%
Goldman Sachs Group Inc GS 4.91%
The Western Union Co WU 4.82%
BorgWarner Inc BWA 4.78%
Madison Square Garden Entertainment Corp Ordinary Shares - Class A MSGE 4.65%
The Mosaic Co MOS 4.18%

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

ARFFX has generated the following returns:

  • 1-month return is -4.64%;
  • 3-month return is 3.13%;
  • 1-year return is 3.13%;
  • 3-year return is 11.36%;
  • 5-year return is 13.15%;
  • 10-year return is 9.63%;
  • 15-year return is 7.23%.

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

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

ARFFX up and down years

5. What is ARFFX dividend yield?

ARFFX yield is 0.7%.

6. What is ARFFX minimum initial investment amount?

ARFFX minimum initial investment amount is $3.00K.

7. Does ARFFX have any sales loads or 12b-1 distribution expenses?

ARFFX 12b-1 distribution fee is 0.25. ARFFX front-end sales load is 0. ARFFX back-end sales load is 0.

8. What is ARFFX tax efficiency (tax-cost ratio)?

  • 1-year ax cost ratio is 0.75%;
  • 3-year ax cost ratio is 0.97%.
ARFFX tax costs

9. What is ARFFX beta? How would you assess ARFFX risk?

ARFFX Beta

10. What is ARFFX Sharpe ratio?

  • 3-year Sharpe ratio is 0.50;
  • 5-year Sharpe ratio is 0.65;
  • 10-year Sharpe ratio is 0.57;
  • 15-year Sharpe ratio is 0.41.
ARFFX Sharpe ratio

Analysis

11. What is Finny Score? buy or sell?

Finny Score is 14. Our quantitative analysis shows 1 reason to buy and 6 reasons to sell it, resulting in the Finny Score of 14.

12. What are the pros of investing in ARFFX? What are ARFFX buy reasons?

The following are ARFFX strengths from our perspective:

  • ARFFX 5-year return is 13.15%, which is higher than the 5-year return of the benchmark index (Russell 1000 Value TR USD), 12.05%.

13. What are the cons of investing in ARFFX? What are ARFFX negatives?

The following are ARFFX weaknesses from our perspective:

  • ARFFX net assets are $48.60 million. This fund is not a popular choice with retail investors.
  • ARFFX 3-year return is 11.36%, which is lower than the 3-year return of the benchmark index (Russell 1000 Value TR USD), 12.74%.
  • ARFFX 10-year return is 9.63%, which is lower than the 10-year return of the benchmark index (Russell 1000 Value TR USD), 11.54%.
  • ARFFX 15-year return is 7.23%, which is lower than the 15-year return of the benchmark index (Russell 1000 Value TR USD), 8.08%.
  • ARFFX expense ratio is 1%, which is not negligible. Is the fund expensive to you, and does it align to your investment strategy?
  • Warning: this fund has a 12b1 sales fee. The maximum 12b1 fee is 0.25%. A 12b-1 fee is an annual marketing or distribution fee on a mutual fund.
In the ARFFX review, we covered ARFFX 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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