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Does Your Retirement Portfolio Hold These 3 Mutual Fund Misfires? - October 28, 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.
High fees plus poor performance: It's a pretty simple formula for a bad mutual fund. Some are worse than others - and some are so bad that they have earned a "Strong Sell" on the Zacks Rank, the lowest ranking of the nearly 19,000 mutual funds we rank daily.
Below, you'll read about some of the funds included in our current list of "Mutual Fund Misfires of the Market." And if by chance you're invested in any of these misfires, we'll help and review some of our highest Zacks Ranked mutual funds.
3 Mutual Fund Misfires
Now, let's take a look at three market misfires.
Oppenheimer SteelPath MLP Alpha A (MLPAX - Free Report) : Expense ratio: 1.54%. Management fee: 1.1%. After expenses, the 5 year return is -8.38%, meaning your fees are far higher than the fund's returns.
Janus Henderson Emerging Markets A (HEMAX - Free Report) . Expense ratio: 1.37%. Management fee: 1.1%. Over the last 5 years, this fund has generated annual returns of -0.73%.
Hartford Global Real Asset C (HRLCX - Free Report) - 2% expense ratio, 0.85% management fee. This fund has yielded yearly returns of -2.58% 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.
Janus Henderson Growth & Income T (JAGIX - Free Report) is a fund that has an expense ratio of 0.86%, and a management fee of 0.6%. JAGIX is part of the Large Cap Blend section, and these mutual funds most often invest in firms with a market capitalization of $10 billion or more. By investing in bigger companies, these funds offer more stability, and are often well-suited for investors with a "buy and hold" mindset. With yearly returns of 11.46% over the last five years, this fund clearly wins.
Columbia Seligman Communications and Information Z (CCIZX - Free Report) is a stand out fund. CCIZX is part of the Sector - Tech mutual fund category that invests in technology and lets investors own a stake in a notoriously volatile sector, but with a much more diversified approach. With five-year annualized performance of 17.5% and expense ratio of 0.99%, this diversified fund is an attractive buy with a strong history of performance.
Vanguard Global Minimum Volatility Fund Admiral (VMNVX - Free Report) has an expense ratio of 0.15% and management fee of 0.13%. VMNVX is a Global - Equity mutual fund, which invests their assets in large markets, leveraging the global economy. With annual returns of 10.54% over the last five years, this fund is a well-diversified fund with a long track record of success.
Bottom Line
These examples underscore the huge range in quality of mutual funds - from the really bad to the astonishingly good. There is no reason for your advisor to keep your money in any fund that charges more than you get in return (unless they're getting something out of it, like a high commission).
If you have concerns or any doubts about your investment advisor, read our just-released report:
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Does Your Retirement Portfolio Hold These 3 Mutual Fund Misfires? - October 28, 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.
High fees plus poor performance: It's a pretty simple formula for a bad mutual fund. Some are worse than others - and some are so bad that they have earned a "Strong Sell" on the Zacks Rank, the lowest ranking of the nearly 19,000 mutual funds we rank daily.
Below, you'll read about some of the funds included in our current list of "Mutual Fund Misfires of the Market." And if by chance you're invested in any of these misfires, we'll help and review some of our highest Zacks Ranked mutual funds.
3 Mutual Fund Misfires
Now, let's take a look at three market misfires.
Oppenheimer SteelPath MLP Alpha A (MLPAX - Free Report) : Expense ratio: 1.54%. Management fee: 1.1%. After expenses, the 5 year return is -8.38%, meaning your fees are far higher than the fund's returns.
Janus Henderson Emerging Markets A (HEMAX - Free Report) . Expense ratio: 1.37%. Management fee: 1.1%. Over the last 5 years, this fund has generated annual returns of -0.73%.
Hartford Global Real Asset C (HRLCX - Free Report) - 2% expense ratio, 0.85% management fee. This fund has yielded yearly returns of -2.58% 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.
Janus Henderson Growth & Income T (JAGIX - Free Report) is a fund that has an expense ratio of 0.86%, and a management fee of 0.6%. JAGIX is part of the Large Cap Blend section, and these mutual funds most often invest in firms with a market capitalization of $10 billion or more. By investing in bigger companies, these funds offer more stability, and are often well-suited for investors with a "buy and hold" mindset. With yearly returns of 11.46% over the last five years, this fund clearly wins.
Columbia Seligman Communications and Information Z (CCIZX - Free Report) is a stand out fund. CCIZX is part of the Sector - Tech mutual fund category that invests in technology and lets investors own a stake in a notoriously volatile sector, but with a much more diversified approach. With five-year annualized performance of 17.5% and expense ratio of 0.99%, this diversified fund is an attractive buy with a strong history of performance.
Vanguard Global Minimum Volatility Fund Admiral (VMNVX - Free Report) has an expense ratio of 0.15% and management fee of 0.13%. VMNVX is a Global - Equity mutual fund, which invests their assets in large markets, leveraging the global economy. With annual returns of 10.54% over the last five years, this fund is a well-diversified fund with a long track record of success.
Bottom Line
These examples underscore the huge range in quality of mutual funds - from the really bad to the astonishingly good. There is no reason for your advisor to keep your money in any fund that charges more than you get in return (unless they're getting something out of it, like a high commission).
If you have concerns or any doubts about your investment advisor, read our just-released report:
4 Warning Signs That Your Advisor Might be Sabotaging Your Financial Future