We use cookies to understand how you use our site and to improve your experience. This includes personalizing content and advertising. To learn more, click here. By continuing to use our site, you accept our use of cookies, revised Privacy Policy and Terms of Service.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
Mutual Fund Misfires of the Market - February 04, 2020
Read MoreHide Full Article
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.
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.
Rydex Energy Services Investor (RYVIX - Free Report) : 1.47% expense ratio and 0.85% management fee. RYVIX is a Sector - Energy mutual fund, which encompasses a wide range of vastly changing and vitally important industries throughout this massive global sector. With a five year after-costs return of -17.99%, you're for the most part paying more in charges than returns.
Pacific Advisors Mid Cap Value A . Expense ratio: 6.75%. Management fee: 0.85%. Over the last 5 years, this fund has generated annual returns of -3.97%.
Catalyst Small Cap Insider Buy A - 1.77% expense ratio, 1.25% management fee. CTVAX is a Small Cap Growth mutual fund building their portfolio around stocks with market caps under $2 billion and large growth opportunities. CTVAX has generated annual returns of -3.68% 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.
Victory Sycamore Established Value R6 (VEVRX - Free Report) : 0.58% expense ratio and 0.45% management fee. VEVRX is a Mid Cap Value fund, which usually invests in companies with a stock market valuation between $2 billion and $10 billion. With an annual return of 10.51% over the last five years, this fund is a winner.
AB Small Cap Growth Adviser (QUAYX - Free Report) is a stand out fund. QUAYX is a Small Cap Growth mutual fund building their portfolio around stocks with market caps under $2 billion and large growth opportunities. With five-year annualized performance of 14.02% and expense ratio of 0.91%, this diversified fund is an attractive buy with a strong history of performance.
Conestoga Smid Cap Investor (CCSMX - Free Report) is an attractive fund with a five-year annualized return of 14.54% and an expense ratio of just 1.1%. CCSMX 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.
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.
Image: Bigstock
Mutual Fund Misfires of the Market - February 04, 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.
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.
Rydex Energy Services Investor (RYVIX - Free Report) : 1.47% expense ratio and 0.85% management fee. RYVIX is a Sector - Energy mutual fund, which encompasses a wide range of vastly changing and vitally important industries throughout this massive global sector. With a five year after-costs return of -17.99%, you're for the most part paying more in charges than returns.
Pacific Advisors Mid Cap Value A . Expense ratio: 6.75%. Management fee: 0.85%. Over the last 5 years, this fund has generated annual returns of -3.97%.
Catalyst Small Cap Insider Buy A - 1.77% expense ratio, 1.25% management fee. CTVAX is a Small Cap Growth mutual fund building their portfolio around stocks with market caps under $2 billion and large growth opportunities. CTVAX has generated annual returns of -3.68% 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.
Victory Sycamore Established Value R6 (VEVRX - Free Report) : 0.58% expense ratio and 0.45% management fee. VEVRX is a Mid Cap Value fund, which usually invests in companies with a stock market valuation between $2 billion and $10 billion. With an annual return of 10.51% over the last five years, this fund is a winner.
AB Small Cap Growth Adviser (QUAYX - Free Report) is a stand out fund. QUAYX is a Small Cap Growth mutual fund building their portfolio around stocks with market caps under $2 billion and large growth opportunities. With five-year annualized performance of 14.02% and expense ratio of 0.91%, this diversified fund is an attractive buy with a strong history of performance.
Conestoga Smid Cap Investor (CCSMX - Free Report) is an attractive fund with a five-year annualized return of 14.54% and an expense ratio of just 1.1%. CCSMX 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.
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.