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Are You Invested In These 3 Mutual Fund Misfires? - October 14, 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.
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.
First Eagle Fund of America C (FEAMX - Free Report) : Expense ratio: 2.15%. Management fee: 0.9%. After expenses, the 5 year return is 1.37%, meaning your fees are far higher than the fund's returns.
Franklin Mutual International Z : 0.97% expense ratio, 0.88% management fee. FMIZX is a Non US - Equity option, focusing their investments acoss emerging and developed markets, and can often extend across cap levels too. This fund has an annual returns of 0.72% over the last five years. Another fund guilty of having investors pay more in fees than returns.
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 mutual fund, which encompasses a wide range of vastly changing and vitally important industries throughout this massive global 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
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.
MSIF Growth Portfolio A (MSEGX - Free Report) is a winner, with an expense ratio of just 0.82% and a five-year annualized return track record of 13.08%.
BlackRock Science & Technology Opportunities Service Class (BSTSX - Free Report) : Expense ratio: 1.17%. Management fee: 0.82%. BSTSX is a Sector - Tech mutual fund, allowing investors to own a stake in a notoriously volatile sector with a much more diversified approach. BSTSX has managed to produce a robust 19.88% over the last five years.
Vanguard US Growth Admiral (VWUAX - Free Report) : Expense ratio: 0.27%. Management fee: 0.27%. VWUAX 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. VWUAX has produced a 12.96% over the last five years.
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:
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Are You Invested In These 3 Mutual Fund Misfires? - October 14, 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.
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.
First Eagle Fund of America C (FEAMX - Free Report) : Expense ratio: 2.15%. Management fee: 0.9%. After expenses, the 5 year return is 1.37%, meaning your fees are far higher than the fund's returns.
Franklin Mutual International Z : 0.97% expense ratio, 0.88% management fee. FMIZX is a Non US - Equity option, focusing their investments acoss emerging and developed markets, and can often extend across cap levels too. This fund has an annual returns of 0.72% over the last five years. Another fund guilty of having investors pay more in fees than returns.
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 mutual fund, which encompasses a wide range of vastly changing and vitally important industries throughout this massive global 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
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.
MSIF Growth Portfolio A (MSEGX - Free Report) is a winner, with an expense ratio of just 0.82% and a five-year annualized return track record of 13.08%.
BlackRock Science & Technology Opportunities Service Class (BSTSX - Free Report) : Expense ratio: 1.17%. Management fee: 0.82%. BSTSX is a Sector - Tech mutual fund, allowing investors to own a stake in a notoriously volatile sector with a much more diversified approach. BSTSX has managed to produce a robust 19.88% over the last five years.
Vanguard US Growth Admiral (VWUAX - Free Report) : Expense ratio: 0.27%. Management fee: 0.27%. VWUAX 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. VWUAX has produced a 12.96% over the last five years.
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