|Expense Ratio (net)||0.52%|
|Last Cap Gain||0.00|
|Morningstar Risk Rating||Low|
|Beta (5Y Monthly)||0.89|
|5y Average Return||N/A|
|Average for Category||N/A|
|Inception Date||Dec 26, 1989|
What a difference a year makes. On Christmas Eve 2018, the S&P; 500 closed sharply down, bringing its peak-to-trough losses to 19.8% - just shy of the 20% loss that defines a bear market. Even many of the best stock funds were clobbered. You had to look hard to find any optimistic market watchers that winter.In contrast, with the S&P; 500 up a stunning 29% in the year just ended, most market gurus are expecting good tidings in 2020 - albeit much more muted gains than 2019 produced.Last year was yet another one in which growth walloped value, even though growth stocks are significantly overpriced compared to value stocks. (Yes, growth stocks are supposed to be more expensive than value stocks - but not by nearly the gap that exists today.) Similarly, foreign stocks again lagged U.S. stocks despite being cheaper than U.S. stocks when measured against earnings and sales.The lessons I take away from that? Overweight foreign and value stocks slightly, but don't get carried away. Don't try to time the market, and be patient with what looks attractive. Diversification is still your best friend.With that in mind, here are my five best stock funds for retirement savers in 2020. SEE ALSO: The 25 Best Low-Fee Mutual Funds to Buy in 2020
Peter Lynch was generous with his time and insight when Barron’s sat down with him at Fidelity’s Boston headquarters. Peter Lynch: After 50 years of doing this professionally, it reinforces that growth stocks are better than nongrowth stocks. Growth stocks, by definition, are where sales have really grown.
[Editor's note: "7 Fantastic Fidelity Funds for a Range of Investors" was previously published in June 2019. It has since been updated to include the most relevant information available.]Fidelity is a giant in the arena of actively managed mutual funds, but in recent years, the company has asserted itself in the index funds and exchange traded funds (ETFs) industries, becoming a credible challenger on the low-cost front.These days, Fidelity offers a quartet of zero-fee index funds as well as the least expensive sector funds in the ETF industry. Plus, Fidelity offers a slew of other inexpensive ETFs as well as an expansive lineup of ETFs that can be traded on a commission-free basis. Investors opting for mutual funds will enjoy knowing that Fidelity funds do not have investment minimums.InvestorPlace - Stock Market News, Stock Advice & Trading TipsThe good news is Fidelity has something for everyone, whether you're a cost-conscious investor or one that wants the benefits of active management on your side. * 7 CBD Stocks to Buy That Are Still Worth Your Investment Dollars Here are some of the best Fidelity funds to consider. Fidelity Low-Priced Stock Fund (FLPSX)Source: Shutterstock Expense ratio: 0.62% per year, or $62 on a $10,000 investment.The Fidelity Low-Priced Stock Fund (MUTF:FLPSX) is not excessively expensive in the world of actively managed equity mutual funds, but there are plenty of ETFs and index funds that are cheaper. That said, FLPSX is an example of a fund that merits its above-average fee.Low-priced stocks have a tendency to seduce investors simply because of those small price tags, but not all low-priced stocks are good companies. This Fidelity fund offers investors the benefit of active management in a corner of the equity market with high risk/reward characteristics. Said another way, many investors interested in low price tag stocks should consider this Fidelity fund over picking individual names.This Fidelity fund is nearly 30 years old and is considered a mid-cap value fund, though some of its holdings are large caps and not all have low price tags. FLPSX devotes over 33% of its weight to consumer goods and services stocks, while the financial services and technology sectors combine for over 26% of the Fidelity fund's weight. Fidelity ZERO Total Market Index Fund (FZROX)Source: Shutterstock Expense ratio: 0%The Fidelity ZERO Total Market Index Fund (MUTF:FZROX) shows the power of an expense ratio of 0%. This Fidelity fund debuted in August 2018 and today has $3.78 billion in assets under management. FZROX tracks the Fidelity U.S. Total Investable Market Index.FZROX is a basic bet on domestic equities and can be used as a core building block in portfolios of all types, regardless of investors' risk tolerances. Over the long-term, this Fidelity fund is likely to produce returns in line or close to those of major U.S. equity benchmarks, such as the S&P 500 and the Russell 1000 Index. * 7 CBD Stocks to Buy That Are Still Worth Your Investment Dollars This Fidelity fund is considered a large-cap blend offering and allocates 21% of its weight to technology stocks. The financial services and healthcare sectors combine for over almost 32% of FZROX's weight. Fidelity Puritan Fund (FPURX)Source: (C)iStock.com/cosmonaut Expense ratio: 0.54%The Fidelity Puritan (MUTF:FPURX) is one of the best Fidelity funds for investors to consider if they are looking dynamic asset allocation, particularly as markets change. Meaning FPURX can offer the traditional 60/40 equity/fixed income split, but that allocation can jump as high as 80/20 in strong trending bull markets.This is a massive Fidelity fund with $26.99 billion in assets under management and one that recently underwent a management change. Long-time lead manager Ramin Arani departed the fund at the end of last year with Dan Kelley assuming the top spot in running FPURX. Still, the fund has a five-star Morningstar rating and is one of the cheaper actively managed funds in this category.FPURX invests 67% of its assets in stocks and other equity securities and the remainder in bonds and other debt securities, including lower-quality debt securities, when its outlook is neutral," according to Fidelity. "Investing at least 25% of total assets in fixed-income senior securities (including debt securities and preferred stock). Engaging in transactions that have a leveraging effect on the fund." Fidelity Low Volatility Factor ETF (FDLO)Source: Shutterstock Expense ratio: 0.29%With investors flocking to low volatility ETFs this year, the Fidelity Low Volatility Factor ETF (NYSEARCA:FDLO) is a Fidelity fund to consider. FDLO operates in a crowded universe of domestic low volatility funds, but the ETF is offering modest out-performance this year of the largest ETF in this category. Since coming to market in September 2016, FDLO has outperformed the two largest domestic low volatility ETFs.FDLO tracks the Fidelity U.S. Low Volatility Factor Index and holds nearly 130 stocks. This Fidelity fund is a different beast than what many investors are accustomed to with low volatility investments. Typically, low volatility strategies are heavily allocated to defensive sectors, but that is not the case with this Fidelity fund as FDLO devotes just under 7% of its weight to the real estate and utilities sectors. * 7 CBD Stocks to Buy That Are Still Worth Your Investment Dollars A 21% weight to technology stocks is not typical of reduced volatility strategies, but that trait has boosted FDLO's returns while enhancing the fund's quality profile. Fidelity clients can trade FDLO commission-free to realize additional cost benefits. Fidelity International High Dividend ETF (FIDI)Source: Shutterstock Expense ratio: 0.39%On the actively managed side, there are some Fidelity funds with long track records. Investors can tap the firm's expertise in ex-U.S. markets via the ETF wrapper with the Fidelity International High Dividend ETF (NYSEARCA:FIDI), which debuted in early 2018.FIDI tracks the Fidelity International High Dividend Index, a benchmark comprised of ex-U.S. developed markets large- and mid-cap stocks that have the ability to sustain and grow dividends. 99% of FIDI's net assets are invested in stocks, and it is classified as a large-cap value fund. In many cases, international dividend stocks have higher yields than their U.S. counterparts and there is the added benefit of geographic diversification."Stocks with high yields may pay out a high percentage of their earnings as dividends, which reduces the fraction that can be reinvested to grow their businesses," according to Morningstar. "Alternatively, high yields can stem from stocks with poor prospects and depressed prices."Fortunately, this Fidelity fund may be positioned as a high dividend fund, but it offers dividend growth potential and quality traits as well. Fidelity ZERO Extended Market Index Fund (FZIPX)Source: Shutterstock Expense Ratio: 0%The Fidelity ZERO Extended Market Index Fund (MUTF:FZIPX) is another one of the Fidelity funds that does not have an expense ratio and it is a successful one at that. FZIPX debuted earlier this year and already has $417 million of assets under management.FZIPX fills voids left by funds that purport to be broad market funds but are really just large-cap strategies. In other words, this Fidelity fund is heavy on mid- and small-cap stocks and is classified as a mid-cap blend fund because the bulk of its holdings have market values ranging from $2 billion to $10 billion. * 7 CBD Stocks to Buy That Are Still Worth Your Investment Dollars There is no individual security risk in FZIPX because the fund's top 10 holdings combined for just 2.46% of the index fund's portfolio. However, this Fidelity fund has some sector-level risk because the financial services, industrial and technology sectors combine for over 48% of the fund's weight. Fidelity High Yield Factor ETF (FDHY)Source: Shutterstock Expense Ratio: 0.45%The Fidelity High Yield Factor ETF (NYSEARCA:FDHY), an actively managed fund, is one of the newer Fidelity funds in the fixed income universe and with default rates remaining low this year, investors can up their income streams by being bold with bond funds like FDHY.Some of the advantages of actively managed corporate bond funds include the abilities of the managers to manage interest rate risk and seek credit opportunities as they present themselves. For example, if high-yield bond market participants are favoring higher rated junk debt, FDHY can adjust allocations away from speculative fare.The managers can also seek opportunities outside the U.S. as highlighted by FDHY's exposure to 13 countries, though the U.S. accounts for 80% of the Fidelity fund's geographic weight.At the end of May, FDHY had a duration of 3.3 years and an annualized dividend yield of 4.7%. FDHY holds 191 bonds.As of this writing, Todd Shriber does not own any of the aforementioned securities. More From InvestorPlace * 2 Toxic Pot Stocks You Should Avoid * 7 CBD Stocks to Buy That Are Still Worth Your Investment Dollars * 5 Stocks to Buy With Great Charts * 5 Goldman Sachs Stocks to Buy with Over 20% Upside Potential The post 7 Fantastic Fidelity Funds for a Range of Investors appeared first on InvestorPlace.
In my recently published article on Morningstar Investor Returns , I noted that funds with low standard deviation relative to their category group tended to have higher investor returns and smaller gaps with official returns. Vanguard Global Minimum Volatility VMVFX is designed to curtail volatility in a global arena that can have a fair amount of bumps because of currency movements and market dynamics. The fund, which has a Morningstar Analyst Rating of Silver, reduces volatility by avoiding stock or country bets and by hedging out currency exposure.
Many actively-managed mutual funds carry higher fees than passive index funds and exchange traded funds (ETFs). That isn't necessarily a bad thing, assuming investors are able to identify the active managers with track records of consistent out-performance.Making matters tougher on investors is the fact that some mutual funds come with "loads." Loads are a real nuisance for investors. Put simply, a load is an added sales commission that goes to a middleman between the investor and the broker. Talk about pesky. * 10 Cheap Dividend Stocks to Load Up On Fortunately, there are plenty of solid funds out there that are no-load mutual funds. That's particularly good news for retirement investors or for those looking for mutual funds appropriate for retirement accounts. The more you can save on fees, the bigger your nest egg will be come retirement time.InvestorPlace - Stock Market News, Stock Advice & Trading TipsHere are some no-load mutual funds to consider for retirement portfolios. Mairs & Power Growth (MPGFX)Source: Shutterstock Expense ratio: 0.64% per year, or $64 on a $10,000 investment.The Mairs & Power Growth Fund (MUTF:MPGFX) carries a minimum investment of $2,500, but at least this a no-load mutual fund and one that sports a three-star rating on Morningstar. Over the past 10 years, MPGFX has turned $10,000 into $37,000, beating the category average by about $3,000."The fund's conservative performance pattern has been on display recently," states Morningstar. "The portfolio is typically light on technology stocks because the process favors companies growing just a little faster than the overall economy. That hurt the fund in calendar-year 2017, when its 16.5% return lagged the S&P 500 by more than 5 percentage points and trailed nearly nine tenths of its peers. Yet the fund held up better than most in 2018's volatile market, faring better than three fourths of its peer group."This no-load mutual fund allocates about half its weight to the industrial and healthcare sectors, well above the category averages. MPGFX is underweight energy, financial services, and technology stocks relative to competing funds. Vanguard High-Yield Corporate Fund Investor Shares (VWEHX)Expense ratio: 0.23%Vanguard is known as one of the leaders of low-cost, passive revolution, but the fund giant also features a robust lineup of more traditional funds, not just ETFs. In fact, if you want a Vanguard junk bond, you'll need to go the mutual fund route with the Vanguard High-Yield Corporate Fund Investor Shares (MUTF:VWEHX) because the issuer doesn't yet offer an ETF for junk bonds.Fortunately, VWEHX is a no-load mutual fund with a track record spanning more than four decades. While this no-load fund features a $3,000 minimum investment, its cost savings are compelling. * 10 Stocks Under $5 to Buy for Fall "The average Vanguard mutual fund expense ratio is 83% less than the industry average," according to Vanguard. "85% of Vanguard no-load mutual funds performed better than their peer-group averages over the past 10 years." Fidelity Low-Priced Stock Fund (FLPSX)Source: Shutterstock Expense ratio: 0.62%Over the course of every investor's life, he or she has been tempted at least one time by a stock with a low price tag. Sometimes, those bets pay off. Other times they don't, but low-priced stocks are an asset class where active management can be advantageous.Enter the Fidelity Low-Priced Stock Fund (MUTF:FLPSX), which defines "low-priced stocks" as those with share prices of $35 or less. FLPSX is classified as a mid-cap value fund and has performed slightly better than that category average over the decade. The Fidelity fund's fee is below the category average.FLPSX invests "in companies with market values between $2 billion and $10 billion that fund managers believe are undervalued by the market. Value can be determined by a variety of measures, including price-to-earnings ratio, price-to-book ratio, or dividend yield," according to Fidelity. T. Rowe Price Blue Chip Growth (TRBCX)Source: Shutterstock Expense ratio: 0.70%One of the highest-rated funds in the large-cap growth universe, the T. Rowe Price Blue Chip Growth (MUTF:TRBCX) is also a no-load mutual fund and one with five-star and gold ratings from Morningstar.As is the case with many growth funds, this no-load mutual fund allocates a significant portion of its weight to the technology, consumer discretionary, and healthcare sectors (over two-thirds of its combined weight). TRBCX's holdings have higher return on invested capital (ROIC) and cash flow than the components in category average funds. * 15 Growth Stocks to Buy for the Long Haul "The fund has posted superb returns in the bull market dating back to 2009, with top-quintile or better showings in 2009, 2012, 2013, 2015, 2017, and 2018," said Morningstar. "It has lost less than peers and the benchmark in down markets throughout (manager Larry) Puglia's entire tenure." Vanguard Global Wellesley Income Fund Investor Shares (VGWIX)Source: Shutterstock Expense ratio: 0.43%The Vanguard Global Wellesley Income Fund Investor Shares (MUTF:VGWIX) is a no-load mutual fund ideal for the current market environment. With interest rates falling in the U.S. and plenty of other markets and the world being awash in over $14 trillion in negative-yielding debt, investors are looking for income.This no-load mutual fund sources income via dividend stocks and investment-grade bonds and currently allocates more than 60% of its weight to bonds. In other words, this is a conservative allocation or "balanced fund." VGWIX is a global fund, which can help investors with the income objective because many developed markets outside the U.S. feature higher-yielding stocks than are found in the S&P 500.Currently, VGWIX holds just 69 stocks, but the no-load fund's equity roster trades at discount to the major U.S. benchmarks. The average duration on the 344 bonds held by VGWIX is 6.3 years, putting the fund's fixed income roster in intermediate-term territory. Vanguard Dividend Growth Fund (VDIGX)Source: Shutterstock Expense ratio: 0.22%The Vanguard Dividend Growth Fund (MUTF:VDIGX) is a pleasant surprise addition to this list because for the past three years, this no-load mutual fund was not open to new investors, but that recently changed."The dividend growth fund, advised by Wellington Management, was introduced in 1992. Don Kilbride has run it since early 2006. The fund places in the top 15% of its Morningstar peer group based on 1-year, 3-year, 5-year, 10-year and 15-year returns," according to Barron's. * 10 Stocks to Buy on the Trade War Dip Classified as a large-cap growth fund, VDIGX is heavily defensive as over a third of its weight is allocated to consumer staples and healthcare stocks. Industrials are the largest sector weight at almost 21%. VDIGX components have better ROIC and cash flow than funds in the category average. DF Dent Mid-Cap Growth (DFDMX)Expense ratio: 0.98%Among mid-cap growth funds, the DF Dent Mid-Cap Growth (MUTF:DFDMX) is somewhat pricey, but it's a no-load fund and one of the sturdier options in its respective group. Open to new investors, DFDMX has $2,500 minimum investment, but it is worth the cost of admission because the fund is one of the most highly-rated products in its peer group.Over the past decade, a $10,000 investment in DFDMX has turned into about $35,500, or about $12,000 more than the average fund in the mid-cap growth space. DFDMX's managers can and do hold stocks for several years, sometimes allowing holdings to become large caps and retaining those positions as long as the companies maintain robust growth.Industrial and technology stocks combine for 56% of this no-load fund's weight. Free cash flow of its components top those of the Russell Mid-Cap Growth Index. Investors should note DFDMX is typically a concentrated fund. At the end of the first quarter, it had just 34 holdings.Todd Shriber does not own any of the aforementioned securities. More From InvestorPlace * 2 Toxic Pot Stocks You Should Avoid * 10 Cheap Dividend Stocks to Load Up On * The 10 Biggest Losers from Q2 Earnings * 5 Dependable Dividend Stocks to Buy The post 7 Great No-Load Mutual Funds for Retirement Portfolios appeared first on InvestorPlace.
The reallocation affects Boston-based Fidelity's over $200 billion lineup of target-date funds, which are held by several million U.S. investors in 401(k) and other retirement accounts. Fidelity is betting on more growth overseas as its flagship target-date Freedom Funds have struggled to keep pace with their internal benchmarks. Fidelity is raising its allocation in international funds to 40% from 30% of equity assets in target-date portfolios, while cutting exposure to U.S. stock funds to 60% from 70%.
Tim Harford, a Financial Times columnist, wondered "Why Brilliant People Lose Their Touch." He maintains, at least for mutual funds, that the question cannot be answered. Having looted Harford's topic, I will do likewise with his conclusion. The sample size of consistently successful mutual fund managers is too small, and the factors affecting their funds too large, to permit comfortable conclusions.
We take a numerical look through this week's Morningstar research. Plus, our most popular articles and videos for the week ended June 14.
Today, Morningstar revealed the nominees for the Morningstar Awards for Investing Excellence--Outstanding Portfolio Manager. Morningstar analysts nominated five candidates for the award across equity, fixed-income, and multi-asset categories. The winner will be announced during the Morningstar Investment Conference in May 2019.
Ten years ago, Vanguard, American Funds, and Fidelity were the largest mutual fund companies, controlling 40% of the industry's assets. After those firms, there was a significant drop, with PIMCO placing fourth with 5% market share, most of which rested in a single fund ( PIMCO Total Return PTTRX). In aggregate, their funds had posted above-average performance, with below-average expense ratios (significantly below, in the case of Vanguard and American Funds).