In This Article:
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.
Guidemark World ex-US Fund Service Class GMWEX: 1.39% expense ratio, 0.5% management fee. GMWEX is a part of the Non US - Equity fund category, many of which will focus across all cap levels, and will typically allocate their investments between emerging and developed markets. With a five year after-costs return of 1.36%, you're for the most part paying more in charges than returns.
Sierra Core Retirement R SIRRX. Expense ratio: 1.48%. Management fee: 0.5%. Over the last 5 years, this fund has generated annual returns of 2.1%. SIRRX is a part of the Allocation Balanced fund category; these funds like to invest in a variety of asset types, finding a balance between stocks, bonds, cash, and sometimes even precious metals and commodities; they are mostly categorized by their respective asset allocation.
Hancock Horizon Dividend International Fund I HHDTX: Expense ratio: 1.27%. Management fee: 0.8%. HHDTX is a Global - Equity mutual fund, which invests their assets in large markets, leveraging the global economy. With annual returns of just 1.07%, it's no surprise this fund has received Zacks' "Strong Sell" ranking.
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.
AQR Large Cap Defensive Style I AUEIX: Expense ratio: 0.4%. Management fee: 0.25%. AUEIX is classified as a Large Cap Blend fund. More often than not, Large Cap Blend mutual funds invest in companies with a market cap of over $10 billion. Buying stakes in bigger companies offer these funds more stability, and are well-suited for investors with a "buy and hold" mindset. This fund has achieved five-year annual returns of an astounding 13.45%.