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Are You Invested In These 3 Mutual Fund Misfires? - January 29, 2020
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If your advisor has you invested in any of these "Mutual Fund Misfires of the Market" with high fees and low returns, you need to rethink your 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.
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.
MainStay International Opportunities Investor (MYINX - Free Report) : 1.83% expense ratio and 1.1% management fee. MYINX 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-costs return of -0.31%, you're for the most part paying more in charges than returns.
AQR Equity Market Neutral N (QMNNX - Free Report) : 1.55% expense ratio, 1.1% management fee. QMNNX is a Market Neutral - Equity mutual fund. These funds attempt to maximize returns, and usually hold 50% of their securities in a long position and 50% in a short position. This fund has an annual returns of 0.35% over the last five years. Another fund guilty of having investors pay more in fees than returns.
CMG Mauldin Solutions A - 1.66% expense ratio, 1.05% management fee. This fund has yielded yearly returns of 0.43% 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.
Fidelity Select Wireless (FWRLX - Free Report) is a fund that has an expense ratio of 0.81%, and a management fee of 0.54%. FWRLX 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 yearly returns of 11.89% over the last five years, this fund clearly wins.
Vanguard Tax-Managed Cap Appreciation Institutional (VTCIX - Free Report) is a stand out fund. VTCIX is a part of the Large Cap Growth mutual fund category, which invest in many large U.S. companies that are expected to grow much faster compared to other large-cap stocks. With five-year annualized performance of 11.76% and expense ratio of 0.06%, this diversified fund is an attractive buy with a strong history of performance.
Baird Midcap Investor (BMDSX - Free Report) is an attractive fund with a five-year annualized return of 11.2% and an expense ratio of just 1.06%. BMDSX is a Mid Cap Growth mutual fund. Mid Cap Growth funds pick stocks--usually companies with a market cap between $2 billion and $10 billion--that demonstrate extensive growth opportunities for investors compared to their peers.
Bottom Line
Along these lines, there you have it - if your financial guide has you put your money into any of our "Mutual Fund Misfires of the Market," there is a strong likelihood that they are either dormant at the worst possible time, inept, or (in all probability) filling their pockets with high fee commissions at the cost of your financial objectives.
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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Are You Invested In These 3 Mutual Fund Misfires? - January 29, 2020
If your advisor has you invested in any of these "Mutual Fund Misfires of the Market" with high fees and low returns, you need to rethink your 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.
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.
MainStay International Opportunities Investor (MYINX - Free Report) : 1.83% expense ratio and 1.1% management fee. MYINX 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-costs return of -0.31%, you're for the most part paying more in charges than returns.
AQR Equity Market Neutral N (QMNNX - Free Report) : 1.55% expense ratio, 1.1% management fee. QMNNX is a Market Neutral - Equity mutual fund. These funds attempt to maximize returns, and usually hold 50% of their securities in a long position and 50% in a short position. This fund has an annual returns of 0.35% over the last five years. Another fund guilty of having investors pay more in fees than returns.
CMG Mauldin Solutions A - 1.66% expense ratio, 1.05% management fee. This fund has yielded yearly returns of 0.43% 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.
Fidelity Select Wireless (FWRLX - Free Report) is a fund that has an expense ratio of 0.81%, and a management fee of 0.54%. FWRLX 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 yearly returns of 11.89% over the last five years, this fund clearly wins.
Vanguard Tax-Managed Cap Appreciation Institutional (VTCIX - Free Report) is a stand out fund. VTCIX is a part of the Large Cap Growth mutual fund category, which invest in many large U.S. companies that are expected to grow much faster compared to other large-cap stocks. With five-year annualized performance of 11.76% and expense ratio of 0.06%, this diversified fund is an attractive buy with a strong history of performance.
Baird Midcap Investor (BMDSX - Free Report) is an attractive fund with a five-year annualized return of 11.2% and an expense ratio of just 1.06%. BMDSX is a Mid Cap Growth mutual fund. Mid Cap Growth funds pick stocks--usually companies with a market cap between $2 billion and $10 billion--that demonstrate extensive growth opportunities for investors compared to their peers.
Bottom Line
Along these lines, there you have it - if your financial guide has you put your money into any of our "Mutual Fund Misfires of the Market," there is a strong likelihood that they are either dormant at the worst possible time, inept, or (in all probability) filling their pockets with high fee commissions at the cost of your financial objectives.
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.