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Does Your Retirement Portfolio Hold These 3 Mutual Fund Misfires? - December 19, 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.
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.
Legg Mason BW International Opportunities Bond I : 0.75% expense ratio and 0.5% management fee. LWOIX is a Non US - Equity option, focusing their investments acoss emerging and developed markets, and can often extend across cap levels too. With a five year after-expenses return of 0.14%, you're mostly paying more in fees than returns.
Touchstone Ultra Short Duration Fixed Income C (TSDCX - Free Report) : 1.19% expense ratio, 0.25%. TSDCX is part of the Government Bond - Short fund category. Often seen as risk-free assets, these funds hold securities issued by the U.S. federal government and they focus on the short end of the curve. This fund has yearly returns of -0.26% over the most recent five years. Another fund liable of having investors pay more in charges than what they receive in return.
Ashmore Emerge Markets Local Current Bond A (ELBAX - Free Report) - 1.22% expense ratio, 0.95% management fee. This fund has yielded yearly returns of -0.76% in the course of the last five years. Too bad!
3 Top Ranked Mutual Funds
Now that you've seen the worst Zacks Ranked mutual funds, let's have a look at some of the highest ranked funds with the lowest fees.
Hartford Core Equity C (HGICX - Free Report) : Expense ratio: 1.48%. Management fee: 0.35%. HGICX is a Large Cap Blend fund, targeting companies with market caps of over $10 billion. These funds offer investors a stability, and are perfect for people with a "buy and hold" mindset. This fund has achieved five-year annual returns of an astounding 11.15%.
Janus Henderson Research N (JRANX - Free Report) : Expense ratio: 0.54%. Management fee: 0.56%. JRANX 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. JRANX has managed to produce a robust 11.59% over the last five years.
Cohen & Steers Real Estate Security I (CSDIX - Free Report) has an expense ratio of 0.86% and management fee of 0.68%. Sector - Real Estate funds like CSDIX are known to invest in real estate investment trusts (REITs). A popular income vehicle thanks to its taxation rules, a REIT is required to pay out at least 90% of its income annually to avoid double taxation. With annual returns of 12.64% 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).
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 19, 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.
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.
Legg Mason BW International Opportunities Bond I : 0.75% expense ratio and 0.5% management fee. LWOIX is a Non US - Equity option, focusing their investments acoss emerging and developed markets, and can often extend across cap levels too. With a five year after-expenses return of 0.14%, you're mostly paying more in fees than returns.
Touchstone Ultra Short Duration Fixed Income C (TSDCX - Free Report) : 1.19% expense ratio, 0.25%. TSDCX is part of the Government Bond - Short fund category. Often seen as risk-free assets, these funds hold securities issued by the U.S. federal government and they focus on the short end of the curve. This fund has yearly returns of -0.26% over the most recent five years. Another fund liable of having investors pay more in charges than what they receive in return.
Ashmore Emerge Markets Local Current Bond A (ELBAX - Free Report) - 1.22% expense ratio, 0.95% management fee. This fund has yielded yearly returns of -0.76% in the course of the last five years. Too bad!
3 Top Ranked Mutual Funds
Now that you've seen the worst Zacks Ranked mutual funds, let's have a look at some of the highest ranked funds with the lowest fees.
Hartford Core Equity C (HGICX - Free Report) : Expense ratio: 1.48%. Management fee: 0.35%. HGICX is a Large Cap Blend fund, targeting companies with market caps of over $10 billion. These funds offer investors a stability, and are perfect for people with a "buy and hold" mindset. This fund has achieved five-year annual returns of an astounding 11.15%.
Janus Henderson Research N (JRANX - Free Report) : Expense ratio: 0.54%. Management fee: 0.56%. JRANX 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. JRANX has managed to produce a robust 11.59% over the last five years.
Cohen & Steers Real Estate Security I (CSDIX - Free Report) has an expense ratio of 0.86% and management fee of 0.68%. Sector - Real Estate funds like CSDIX are known to invest in real estate investment trusts (REITs). A popular income vehicle thanks to its taxation rules, a REIT is required to pay out at least 90% of its income annually to avoid double taxation. With annual returns of 12.64% 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).
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.