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Are You Invested In These 3 Mutual Fund Misfires? - March 18, 2020
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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.
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.
MFS Inflation Adjusted Bond C (MIACX - Free Report) : This fund has an expense ratio of 1.65% and a management fee of 0.49%. Without even doing any in-depth analysis, just the fact that you are paying more in fees than you're earning in returns is reason enough not to invest. MIACX is classified as a Government - Bonds fund. These funds hold securities issued by the U.S. federal government in their portfolios, and focus across the curve, meaning the yields and interest rate sensitivity will vary. The fund has lagged performance-wise, so perhaps a simpler index future investing strategy might be more effective.
Clearbridge International Value A (SBIEX - Free Report) : 1.25% expense ratio, 0.75% management fee. SBIEX is a part of the Non US - Equity fund category, many of which will focus across all cap levels, and will typically allocate their investments between emerging and developed markets. This fund has an annual returns of 0.43% over the last five years. Another fund guilty of having investors pay more in fees than returns.
Gabelli Focus Five Fund AAA (GWSVX - Free Report) - 1.64% expense ratio, 1% management fee. GWSVX is a Small Cap Value fund, and these funds are known for investing in companies with market caps under $2 billion. GWSVX has generated annual returns of -0.45% over the last five years. Ouch!
3 Top Ranked Mutual Funds
Now that we've covered our "worst offender" list, let's take a look at some of Zacks' highest ranked mutual funds with some of the lowest fees you may want to consider.
Vanguard Equity Income Investor (VEIPX - Free Report) is a winner, with an expense ratio of just 0.27% and a five-year annualized return track record of 10.07%.
Fidelity Series Allocation Sector Equity (FSAEX - Free Report) : Expense ratio: 0.06%. Management fee: 0%. FSAEX is a Global - Equity mutual fund investing in bigger markets like the U.S., Europe, and Japan; these kinds of funds aren't limited by geography. FSAEX has managed to produce a robust 10.84% over the last five years.
American Beacon Stephens Mid Cap Growth A (STMGX - Free Report) has an expense ratio of 1.25% and management fee of 0.8%. STMGX is a Mid Cap Growth mutual fund. These funds aim to target companies with a market capitalization between $2 billion and $10 billion that are also expected to exhibit more extensive growth opportunities for investors than their peers. With annual returns of 12.37% 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.
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? - March 18, 2020
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.
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.
MFS Inflation Adjusted Bond C (MIACX - Free Report) : This fund has an expense ratio of 1.65% and a management fee of 0.49%. Without even doing any in-depth analysis, just the fact that you are paying more in fees than you're earning in returns is reason enough not to invest. MIACX is classified as a Government - Bonds fund. These funds hold securities issued by the U.S. federal government in their portfolios, and focus across the curve, meaning the yields and interest rate sensitivity will vary. The fund has lagged performance-wise, so perhaps a simpler index future investing strategy might be more effective.
Clearbridge International Value A (SBIEX - Free Report) : 1.25% expense ratio, 0.75% management fee. SBIEX is a part of the Non US - Equity fund category, many of which will focus across all cap levels, and will typically allocate their investments between emerging and developed markets. This fund has an annual returns of 0.43% over the last five years. Another fund guilty of having investors pay more in fees than returns.
Gabelli Focus Five Fund AAA (GWSVX - Free Report) - 1.64% expense ratio, 1% management fee. GWSVX is a Small Cap Value fund, and these funds are known for investing in companies with market caps under $2 billion. GWSVX has generated annual returns of -0.45% over the last five years. Ouch!
3 Top Ranked Mutual Funds
Now that we've covered our "worst offender" list, let's take a look at some of Zacks' highest ranked mutual funds with some of the lowest fees you may want to consider.
Vanguard Equity Income Investor (VEIPX - Free Report) is a winner, with an expense ratio of just 0.27% and a five-year annualized return track record of 10.07%.
Fidelity Series Allocation Sector Equity (FSAEX - Free Report) : Expense ratio: 0.06%. Management fee: 0%. FSAEX is a Global - Equity mutual fund investing in bigger markets like the U.S., Europe, and Japan; these kinds of funds aren't limited by geography. FSAEX has managed to produce a robust 10.84% over the last five years.
American Beacon Stephens Mid Cap Growth A (STMGX - Free Report) has an expense ratio of 1.25% and management fee of 0.8%. STMGX is a Mid Cap Growth mutual fund. These funds aim to target companies with a market capitalization between $2 billion and $10 billion that are also expected to exhibit more extensive growth opportunities for investors than their peers. With annual returns of 12.37% 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.
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.