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Does Your Retirement Portfolio Hold These 3 Mutual Fund Misfires? - December 03, 2019
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Does your current advisor have your money invested in these "Mutual Fund Misfires of the Market" that charge high fees for low returns? If so, it may be time for a new advisor.
How can you tell a good mutual fund from a bad one? It's pretty basic: If the fund has high fees and performs poorly, it's not good. Of course, there's a range - but when a mutual fund earns a Zacks Rank of #5 (Strong Sell) that means it's among the worst of roughly 19,000 funds we rate each day.
First, let's break down some of the funds currently part of our "Mutual Fund Misfires of the Market." If you happen to have put your money into any of these misfires, we'll help assess some of our best Zacks Ranked mutual funds.
3 Mutual Fund Misfires
Now, let's take a look at three market misfires.
Leader Short-Term Bond Fund A : 1.66% expense ratio and 0.75% management fee. LCAMX is an Investment Grade Bond - Short option; these funds focus on the short end of the curve, generally with bonds that mature in less than two years. With a five year after-expenses return of -0.6%, you're mostly paying more in fees than returns.
ClearBridge International Small Cap C : 2.12% expense ratio, 0.8%. LCOCX is a Non US - Equity option, focusing their investments acoss emerging and developed markets, and can often extend across cap levels too. This fund has yearly returns of -0.38% over the most recent five years. Another fund liable of having investors pay more in charges than what they receive in return.
Guinness Atkinson Renminbi Yuan & Bond (GARBX - Free Report) - 0.91% expense ratio, 0.55% management fee. This fund has yielded yearly returns of -0.22% in the course of the last five years. Too bad!
3 Top Ranked Mutual Funds
There you have it: some prime examples of truly bad mutual funds. In contrast, here are a few funds that have achieved high Zacks Ranks and have low fees.
Neuberger Berman Mid Cap Growth I (NBMLX - Free Report) is a winner, with an expense ratio of just 0.7% and a five-year annualized return track record of 11.12%.
Artisan Global Opportunities Investor (ARTRX - Free Report) is a stand out fund. ARTRX is a Large Cap Growth mutual fund, and these funds invest in many large U.S. firms that are projected to grow at a faster rate than their large-cap peers. With five-year annualized performance of 10.58% and expense ratio of 1.16%, this diversified fund is an attractive buy with a strong history of performance.
Victory Sycamore Established Value R (GETGX - Free Report) : Expense ratio: 1.14%. Management fee: 0.45%. GETGX is an All Cap Value mutual fund, which invests in small, medium, and large-cap companies, though they end up focusing on bigger firms due to percentage of assets. GETGX has produced a 10.3% over the last five years.
Bottom Line
So, there you have it - if your advisor has you invested in any of our "Mutual Fund Misfires of the Market," there is a good probability that they are either asleep at the wheel, incompetent, or (most likely) lining their pockets with high fee commissions at your financial expense.
Do You Know the Top 9 Retirement Investing Mistakes?
Whether you're planning to retire early or not, don't let investing mistakes derail your plans.
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Does Your Retirement Portfolio Hold These 3 Mutual Fund Misfires? - December 03, 2019
Does your current advisor have your money invested in these "Mutual Fund Misfires of the Market" that charge high fees for low returns? If so, it may be time for a new advisor.
How can you tell a good mutual fund from a bad one? It's pretty basic: If the fund has high fees and performs poorly, it's not good. Of course, there's a range - but when a mutual fund earns a Zacks Rank of #5 (Strong Sell) that means it's among the worst of roughly 19,000 funds we rate each day.
First, let's break down some of the funds currently part of our "Mutual Fund Misfires of the Market." If you happen to have put your money into any of these misfires, we'll help assess some of our best Zacks Ranked mutual funds.
3 Mutual Fund Misfires
Now, let's take a look at three market misfires.
Leader Short-Term Bond Fund A : 1.66% expense ratio and 0.75% management fee. LCAMX is an Investment Grade Bond - Short option; these funds focus on the short end of the curve, generally with bonds that mature in less than two years. With a five year after-expenses return of -0.6%, you're mostly paying more in fees than returns.
ClearBridge International Small Cap C : 2.12% expense ratio, 0.8%. LCOCX is a Non US - Equity option, focusing their investments acoss emerging and developed markets, and can often extend across cap levels too. This fund has yearly returns of -0.38% over the most recent five years. Another fund liable of having investors pay more in charges than what they receive in return.
Guinness Atkinson Renminbi Yuan & Bond (GARBX - Free Report) - 0.91% expense ratio, 0.55% management fee. This fund has yielded yearly returns of -0.22% in the course of the last five years. Too bad!
3 Top Ranked Mutual Funds
There you have it: some prime examples of truly bad mutual funds. In contrast, here are a few funds that have achieved high Zacks Ranks and have low fees.
Neuberger Berman Mid Cap Growth I (NBMLX - Free Report) is a winner, with an expense ratio of just 0.7% and a five-year annualized return track record of 11.12%.
Artisan Global Opportunities Investor (ARTRX - Free Report) is a stand out fund. ARTRX is a Large Cap Growth mutual fund, and these funds invest in many large U.S. firms that are projected to grow at a faster rate than their large-cap peers. With five-year annualized performance of 10.58% and expense ratio of 1.16%, this diversified fund is an attractive buy with a strong history of performance.
Victory Sycamore Established Value R (GETGX - Free Report) : Expense ratio: 1.14%. Management fee: 0.45%. GETGX is an All Cap Value mutual fund, which invests in small, medium, and large-cap companies, though they end up focusing on bigger firms due to percentage of assets. GETGX has produced a 10.3% over the last five years.
Bottom Line
So, there you have it - if your advisor has you invested in any of our "Mutual Fund Misfires of the Market," there is a good probability that they are either asleep at the wheel, incompetent, or (most likely) lining their pockets with high fee commissions at your financial expense.
Do You Know the Top 9 Retirement Investing Mistakes?
Whether you're planning to retire early or not, don't let investing mistakes derail your plans.
If you have $500,000 or more to invest and want to learn more, click the link to download our free report, 9 Retirement Mistakes that will Ruin Your Retirement.