|Expense Ratio (net)||0.84%|
|Last Cap Gain||0.00|
|Morningstar Risk Rating||Below Average|
|Beta (3Y Monthly)||1.06|
|5y Average Return||N/A|
|Average for Category||N/A|
|Inception Date||May 17, 1967|
In this debate between mutual funds and ETFs, it’s not active versus passive; it’s fund structure. Mutual funds pay out capital gains that investors owe tax on—and this year the bill is a whopper. ETF investors avoid this cost.
John "Jack" Bogle, the founder of index investment pioneer Vanguard Group Inc, changed Wall Street by convincing millions to turn away from mutual funds that actively pick stocks, but his legacy will also be shaped by the unintended consequences of index funds. Bogle, who died of cancer at age 89 on Wednesday, saved investors billions of dollars by devising and championing low-fee funds that tracked markets instead of trying to beat them. As recently as 2007, index funds and ETFs accounted for only 15 percent of long-term fund assets, according to the Investment Company Institute.
This article was published in the November issue of Morningstar FundInvestor. A nine-year bull market has made fund companies tremendously profitable. You've heard about the move from active to passive funds, but today there is $11.7 trillion in actively managed funds.
Activision Blizzard, Inc. (NASDAQ: ATVI) is one of the largest interactive gaming companies in the world. The company is the result of a December 2007 merger between Blizzard Entertainment and Activision Publishing, two of the largest video game producers at the time of the acquisition. Activision Blizzard's business is broken into three segments — media, technology, and entertainment — with a robust portfolio of top-performing video game franchises.
Electronic Arts Inc. (NASDAQ: EA) is one of the largest creators and marketers of video games. Launched by Fidelity in May 1967, the Fidelity Contrafund is an actively managed large-cap growth fund that seeks long-term capital appreciation.
Facebook, Inc. (NASDAQ: FB) has established itself as the leading social media giant with a market capitalization of $418.18 billion as of October 29, 2018. When Facebook issued its initial public offering (IPO) on May 18, 2012, many mutual funds had already snapped up shares on the private market. Thereafter, these funds spread their shares of Facebook across many funds. Although Facebook's stock price has gone on a roller coaster ride, those funds that held on to shares benefited from its high growth rate.
State treasurers from Illinois, Rhode Island and Pennsylvania, and New York City Comptroller Scott Stringer, co-filed the proposal. A similar shareholder proposal seeking an independent chair was defeated in 2017 at Facebook, where Zuckerberg's majority control makes outsider resolutions effectively symbolic.
There are 66 long-term portfolios in all, designed to suit investors with varying proximities to retirement and preferences. There are portfolios composed of traditional mutual funds as well as exchange-traded funds. Given all of those variations--and especially the fact that their asset allocations vary so widely--it's no surprise that their performance varied, too.
Thanks to an exceptionally strong equity market and decent, if not spectacular, bond market performance, our tax-efficient Bucket Portfolios for Vanguard investors have delivered solid returns over the past three years. The portfolios have performed so well, in fact, that they've beaten our model Vanguard portfolios that were created without regard for tax efficiency. A dash of small-cap exposure has been a boon, as has the fact that the two tax-managed U.S. equity funds in the portfolio both maintain a bias toward growth stocks, which have dramatically bested value and blend names over the trailing three-year period.
The group's annual conference, with Bogle himself as the headliner, typically sells out in a matter of days. Because the firm fields a competitive offering in every key market segment, building portfolios composed of Vanguard's funds is a breeze. Ultralow costs mean the firm's bond funds are invariably contenders in their categories, and Vanguard also fields a lineup of topnotch index products (traditional index funds and exchanged-traded funds) as well as fine actively managed offerings.
Note: Christine Benz's Portfolio Makeover Week is coming this fall. To learn more about having your portfolio considered for a makeover, click here. When I launched my model Retirement Bucket and Saver Portfolios in September 2015, the timing looked less than auspicious.
In short, many 401(k) investors have a connection to the Boston-based fund giant. Of course, not every fund that I've used in these portfolios will be found on every Fidelity 401(k) menu, but investors can use the general framework to build out their own portfolios.
The Fidelity of the 1980s and 1990s was all about domestic-stock funds and the rock-star managers who ran them: Magellan FMAGX , Low-Priced Stock FLPSX , Dividend Growth FDGFX , and Contrafund FCNTX , to name some of the biggies. Fidelity's lineup evolved, too. The firm's fixed-income prowess makes it a particularly appropriate destination for retirees, whose portfolios typically include larger stakes in safe assets than is the case for younger investors.
My model "bucket" portfolios are composed of funds that our analysts consider best of breed. Of course, most of the big providers allow investors to buy funds from other firms on their platforms without paying any additional transaction fees, but those no-transaction-fee fund menus don't include everything. A Vanguard investor will pay a transaction fee to buy a Fidelity fund, for example, and T. Rowe Price investors will have to pay transaction fees to buy Vanguard funds on the T. Rowe platform.
Facebook Inc's (FB.O) second-biggest outside investor has offered backing for the world's largest social media company as it faces public criticism for what people see on its service and how much user information is shared with third parties. Comments by Fidelity Contrafund's (FCNTX.O) Will Danoff, who like other top mutual fund managers rarely voices an opinion about a holding, represent key support for management as some investors seek change at Facebook, but also drew criticism that he should take a tougher line. In a commentary emailed on Monday by the Boston fund firm, Danoff said Facebook, his fund's largest position, "confronted some stiff headwinds" in the first six months of 2018.
Funds run by Fidelity Investments sided with Tesla Inc (TSLA.O) management on director votes and other controversial items this spring, filings showed on Thursday, and experts said that could indicate further support for Tesla CEO Elon Musk as he looks to take the company private. Fidelity funds that are top Tesla holders, including Blue Chip Growth Fund,(FBGKX.O) Growth Company Fund (FDGRX.O) and Contrafund (FCNTX.O), all voted as Tesla recommended at two shareholder meetings held in March and June, the filings showed.
Activision Blizzard, Inc. (NASDAQ: ATVI) is one of the largest interactive gaming companies in the world. It is the result of a merger between Blizzard Entertainment and Activision Publishing. Here are the top 5 mutual fund holders of Activision Blizzard: 1.
Facebook, Inc. (NASDAQ: FB) has established itself as the leading social media giant with a market capitalization of $486.99 billion as of July 30, 2018. When Facebook issued its initial public offering (IPO) on May 18, 2012, many mutual funds had already snapped up shares on the private market. Thereafter, these funds spread their shares of Facebook across many funds. Although Facebook's stock price has gone on a roller coaster ride, those funds that held on to shares benefited from its high growth rate.
Discover the top four largest mutual fund holders of Morgan Stanley shares, and learn if their investment strategy can help your portfolio grow.
"We're making a bet on Elon Musk," said one top-20 Tesla investor who plans to back the directors and vote to keep Musk's roles intact. The investor compared Musk to Apple Inc founder Steve Jobs, saying, "These people are geniuses.
In recent years, prominent companies such as Uber have delayed IPOs, opting to raise money in the private market and build their businesses without the pressure that comes with being publicly traded. Mutual fund managers must increasingly keep tabs on these innovative companies given they could potentially disrupt the business models of their public company holdings. Some active managers have also invested in private companies with the hope that getting in early could reap bigger rewards than waiting for an IPO.