Mutual Fund Misfires of the Market - December 04, 2019
If your financial advisor made you buy any of these "Mutual Fund Misfires of the Market" with high expenses and low returns, you need to reassess your advisor.
How can you tell a good mutual fund from a bad one? It's pretty basic: If the fund has high fees and performs poorly, it's not good. Of course, there's a range - but when a mutual fund earns a Zacks Rank of #5 (Strong Sell) that means it's among the worst of roughly 19,000 funds we rate each day.
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.
Rydex Emerging Market 2X Strategy H (RYWVX): Expense ratio: 1.85%. Management fee: 0.9%. After expenses, the 5 year return is -4.02%, meaning your fees are far higher than the fund's returns.
Oppenheimer SteelPath MLP Alph Plus I (MLPNX): 2.55% expense ratio, 1.25% management fee. MLPNX is a Sector - Energy mutual fund, which encompasses a wide range of vastly changing and vitally important industries throughout this massive global sector. This fund has an annual returns of -11.2% over the last five years. Another fund guilty of having investors pay more in fees than returns.
Hartford Global Real Asset R5 (HRLTX) - 0.95% expense ratio, 0.85% management fee. This fund has yielded yearly returns of -1.56% in the course of the last five years. Too bad!
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.
TIAA-CREF Real Estate Security Retail (TCREX): Expense ratio: 0.81%. Management fee: 0.48%. TCREX is a Sector - Real Estate fund, and these kinds of mutual funds typically invest in eeal estate investment trusts (REITs) due to their taxation rules. This fund has achieved five-year annual returns of an astounding 11.53%.
Artisan Global Opportunities Institutional (APHRX) has an expense ratio of 0.91% and management fee of 0.88%. APHRX 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. Thanks to yearly returns of 10.84% over the last five years, APHRX is an effectively diversified fund with a long reputation of solidly positive performance.
Columbia Seligman Communications and Information Z (CCIZX): Expense ratio: 0.99%. Management fee: 0.87%. CCIZX is a Sector - Tech mutual fund, allowing investors to own a stake in a notoriously volatile sector with a much more diversified approach. CCIZX has produced a 17.5% over the last five years.
We hope that your investment advisor (if you use one) has you invested in one or all of the top-ranked mutual funds we've reviewed. But if that is not the case, and your advisor has you invested in any of the funds on our "worst offender" list, it might be time to have a conversation or reconsider this vitally important relationship.
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