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Mutual Fund Misfires of the Market - November 06, 2019
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You may need to start looking for a new financial advisor if your current one has put any of these high-fee, low-return "Mutual Fund Misfires of the Market" into your portfolio.
The easiest way to judge a mutual fund's quality over time is by analyzing its performance and fees. Our Zacks Rank of over 19,000 mutual funds has identified some of the worst of the worst mutual funds you should avoid, the funds with the highest fees and poorest long-term performance.
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.
Russell Emerging Markets S (REMSX - Free Report) : 1.41% expense ratio and 1.14% management fee. REMSX is a Non US - Equity fund. Many of these funds like to allocate across emerging and developed markets, and will often focus on all cap levels. With a five year after-expenses return of 1.39%, you're mostly paying more in fees than returns.
Catalyst Hedged Futures Strategy C : 3.08% expense ratio, 1.75%. HFXCX is a Long Short - Equity fund, and these funds aim to minimize exposure to the broader market, taking long positions in equities that are expected to appreciate and short positions in equities that are projected to decline. This fund has yearly returns of -4.82% over the most recent five years. Another fund liable of having investors pay more in charges than what they receive in return.
ProFunds UltraSector Oil & Gas Investor (ENPIX - Free Report) : This fund has an expense ratio of 1.28% and management fee of 0.75%. ENPIX is a Sector - Energy fund, which are comprised of various changing and hugely important industries throughout the massive global energy sector. With an annual average return of -13.39% over the last five years, the only thing absolute about this absolute return fund is that it absolutely deserves to be on our "worst offender" list.
3 Top Ranked Mutual Funds
Since you've seen the most noticeably lowest Zacks Ranked mutual funds, how about we take a look at some of the top ranked mutual funds with the least fees.
Principal Capital Appreciation I (PWCIX - Free Report) : 0.47% expense ratio and 0.47% management fee. PWCIX 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 an annual return of 11.18% over the last five years, this fund is a winner.
T. Rowe Price Tax-Efficient Equity (PREFX - Free Report) has an expense ratio of 0.77% and management fee of 0.64%. PREFX is a Large Cap Growth option; these mutual funds purchase stakes in numerous large U.S. companies that are expected to develop and grow at a faster rate than other large-cap stocks. Thanks to yearly returns of 13.13% over the last five years, PREFX is an effectively diversified fund with a long reputation of solidly positive performance.
JPMorgan Small Cap Growth L (JISGX - Free Report) has an expense ratio of 0.84% and management fee of 0.65%. JISGX is a Small Cap Growth mutual fund and tends to feature small companies in up-and-coming industries and markets. With annual returns of 13.97% over the last five years, this fund is a well-diversified fund with a long track record of success.
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.
If you have concerns or any doubts about your investment advisor, read our just-released report:
Image: Bigstock
Mutual Fund Misfires of the Market - November 06, 2019
You may need to start looking for a new financial advisor if your current one has put any of these high-fee, low-return "Mutual Fund Misfires of the Market" into your portfolio.
The easiest way to judge a mutual fund's quality over time is by analyzing its performance and fees. Our Zacks Rank of over 19,000 mutual funds has identified some of the worst of the worst mutual funds you should avoid, the funds with the highest fees and poorest long-term performance.
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.
Russell Emerging Markets S (REMSX - Free Report) : 1.41% expense ratio and 1.14% management fee. REMSX is a Non US - Equity fund. Many of these funds like to allocate across emerging and developed markets, and will often focus on all cap levels. With a five year after-expenses return of 1.39%, you're mostly paying more in fees than returns.
Catalyst Hedged Futures Strategy C : 3.08% expense ratio, 1.75%. HFXCX is a Long Short - Equity fund, and these funds aim to minimize exposure to the broader market, taking long positions in equities that are expected to appreciate and short positions in equities that are projected to decline. This fund has yearly returns of -4.82% over the most recent five years. Another fund liable of having investors pay more in charges than what they receive in return.
ProFunds UltraSector Oil & Gas Investor (ENPIX - Free Report) : This fund has an expense ratio of 1.28% and management fee of 0.75%. ENPIX is a Sector - Energy fund, which are comprised of various changing and hugely important industries throughout the massive global energy sector. With an annual average return of -13.39% over the last five years, the only thing absolute about this absolute return fund is that it absolutely deserves to be on our "worst offender" list.
3 Top Ranked Mutual Funds
Since you've seen the most noticeably lowest Zacks Ranked mutual funds, how about we take a look at some of the top ranked mutual funds with the least fees.
Principal Capital Appreciation I (PWCIX - Free Report) : 0.47% expense ratio and 0.47% management fee. PWCIX 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 an annual return of 11.18% over the last five years, this fund is a winner.
T. Rowe Price Tax-Efficient Equity (PREFX - Free Report) has an expense ratio of 0.77% and management fee of 0.64%. PREFX is a Large Cap Growth option; these mutual funds purchase stakes in numerous large U.S. companies that are expected to develop and grow at a faster rate than other large-cap stocks. Thanks to yearly returns of 13.13% over the last five years, PREFX is an effectively diversified fund with a long reputation of solidly positive performance.
JPMorgan Small Cap Growth L (JISGX - Free Report) has an expense ratio of 0.84% and management fee of 0.65%. JISGX is a Small Cap Growth mutual fund and tends to feature small companies in up-and-coming industries and markets. With annual returns of 13.97% over the last five years, this fund is a well-diversified fund with a long track record of success.
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.
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