I have been looking to augment my portfolio with a relatively conservative LC/All Cap dividend value fund. My prior searching came up with several good candidates; some were Transaction fee and/or load funds, of which I do not invest in. I ended up selecting PYVLX (Payden E/I) an NTF at FIDO.
Two "loaded" funds that came up in my previous searches were LCEAX (Invesco Diversified Dividend) and IAUTX (Invesco Dividend Income). Recently, while perusing Fidelity's "recommended" LC Value funds, I noticed these funds are now Load Waived; this change happened within the last couple of weeks or so.
I was intrigued by these funds originally, but they were "loaded", so off my list they went. Now that they are LW, I am reconsidering them.
I would like and appreciate any and all thoughts, opinions and recommendations regarding these funds and/or any other options that come to mind.
Thank you, Matt
Comments
Regards,
Ted
Ted I have a dumb (or ignorant) question about the stocks you mentioned. Does the YTD return include the yield or is the yield an added bonus on top of the Cap. Apprec.?
Regards,
Ted
http://www.marketwatch.com/story/yield-to-these-23-dividend-stocks-if-youre-looking-for-high-income-2016-04-21
As we approach a "challenged" part of the year (May-Oct) and with the S&P having difficulty breaking through 2100, I would consider being very conservative with additional LCV exposure by using something like VWIAX if you don't already own it. Beyond this fund, I would take a look at FVD, DVY and VYM.
Kevin
Be aware, though, that the sector has been red-hot since the selloff, up nearly 10% in only 3 months. How much further it can go, who knows?
I have linked the Morningstar reports for these funds below along with their fact sheets.
http://www.morningstar.com/funds/XNAS/SVAAX/quote.html
http://www.federatedinvestors.com/FII/daf/pdf/product_profile_performance/investor_fact_sheet/fluctuating_funds/G28220-35.pdf?title=Strategic Value Dividend Fund - Investor Fact Sheet
http://www.morningstar.com/funds/xnas/fdsax/quote.html
https://www.safunds.com/pdf/Fund-Fact-Sheets/asset_upload_file952_8358.pdf
In the small and mid cap space a fund that I own and favor is PMDAX.
http://www.morningstar.com/funds/XNAS/PMDAX/quote.html
https://www.principal.com/allweb/docs/RIS/investments/factsheet/PMDAX.pdf
And, another fund that I favor but do not currently own is TWEAX. It's reports are linked below.
http://www.morningstar.com/funds/XNAS/TWEAX/quote.html
https://www.americancentury.com/content/dam/americancentury/ipro/pdfs/factsheet/EqIncome_multi.pdf
To get a feel for their style orientation along with sector allocations you might wish to do an Instant Xray analysis on each fund through the below link. Just enter the funds ticker symbol along with an amount and click view instant xray.
http://portfolio.morningstar.com/Rtport/Free/InstantXrayDEntry.aspx?entrynum=10
Principal offers some pretty solid funds through retirement plans, but they're also available at the retail level, NTF, at some brokerages.
Here's the Fidelity NTF listing for PMDAX (it's a Fidelity fund pick).
Don't get thrown off by its 3* rating; that's because M* ratings incorporate the impact of loads, and M* overweights that impact for funds with shorter lifetimes (this fund is rated on its three year record only). Instead, see it as a 4* noload fund:
http://www.morningstar.com/funds/XNAS/PMDAX.lw/quote.html
I'm less familiar with SunAmerica - I tend to associate it with VAs, and apparently it's now (since 1998) a subsidiary of AIG. Talk about queasy feelings. Yet the fund seems solid. You can purchase it NTF through TDAmeritrade.
American Century funds, like funds from PIMCO and a variety of other families are sold both load and noload. The noload version of TWEAX is TWEIX. (When one drops the load, whether on TWEAX or TWEIX, the fund gets bumped to a 5 star fund; TWEIX is less expensive as it doesn't have a 12b-1 fee.) One downside is that it's not particularly tax efficient, even allowing for its emphasis on dividends.
LCEIX (now LCEAX) has been on my short list for years, in part because it is more tax-efficient than some of the other funds that pop out in the LCV space.
FWIW, Fidelity added several families (including Invesco) to its load waiver list about three years ago. Here's my post on the Fidelity waivers:
http://www.mutualfundobserver.com/discuss/discussion/6048/fidelity-waives-loads
Please keep the discussion going!!!
http://www.morningstar.com/funds/XNAS/GLFOX/quote.html
http://www.morningstar.com/funds/XNAS/BLVAX.lw/quote.html
Somewhat related ...
The minimum for DSEEX is just $5K in an IRA. So if you're investing in an IRA, there's no need to use the more expensive DSENX share class.
At Fidelity, you could purchase the min of DSENX (NTF), add whatever amount you want to keep in the account (at least $5K total), and ask Fidelity to convert the share class. For most funds, they can do this and there's no $50 fee charged. (I've done this with another fund, but not with DSENX, so you'll have to ask if they can convert this fund.)
Then, additional amounts cost just $5 (using Fidelity's automatic investment program, one time only). Not bad to reduce fees by 25 basis points.
Similar idea with AUENX - the min for AUEIX at Fidelity for an IRA is $2500, same as for AUENX. Save the 25 basis points. (Where can one get AUENX outside of an IRA for under $1M?)
You gotta be persistent w c/s kids. I IMed Fido c/s just now, and no, '$50 is the fee.' I said 'For class conversion ...?' 'Lemme check. Oops, no, that can be done n/c. Phone only.'
Woohoo.
Future purchases? DSENX, then convert .... Wild.
So Trump-level thanks for your prior investigations of this.
I am not familiar with most of these suggestions so I have a lot to check out; exactly what I was hoping for.
If there any any other investment vehicles worth considering, please let me know!!
Matt
Regards,
Ted
That being said, we have used a number of "dividend" funds over the years, a few of which we think have merit. Some, like PFF, are more fixed-income than equity, and have much more downside risk than one might think when prices on the underlying securities are at rather high premiums. Timing could be important here. We bought PFF in March of 2009 and rode it for quite a while. Salient Select Income KIFYX is also worth a look, I think. For REITS, it is hard to beat Cohen & Steers CSRSX and ICF.
Some mutual funds, like TIBIX and IVFIX, have dividend yield as an integral part of their investment philosophy. There are ETFs that combine income with targeted low volatility, such as SPHD. Others target only yield, like VYM, SDY, CVY, and PFM.
The current attraction of dividend-paying equities is that most companies' bonds are over-priced (meaning tiny yields), with lots of downside. The stocks not only have some long-term growth potential, but have a much higher yield than the bonds. But there is no free lunch in the dividend-investing arena. As in all investing, buyer beware.
Regards,
Ted
"....relatively conservative LC/All Cap dividend value fund..."
Are you still intent on a value emphasis, in 2021?
I'm doing just a quick look... Vanguard has been getting negative reviews here in terms of customer service. But VEIPX certainly looks good. Then there's PRDGX. But just lately, Index performance has beaten the fund's performance by a bit. .....Alternatively, what about investing in a single stock that strikes your fancy? For income, I use bond funds. These days, bonds are poison, I know. But I can't be pulling up roots and making changes all the time, depending on which way the wind blows. I've got the other bases covered to my satisfaction.