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4 Balanced Mutual Funds To Buy For Steady Returns

Balanced funds provide investors with the convenience of buying into a single fund rather than holding both equity and bond funds. This category of funds also reduces a portfolio’s volatility while providing higher returns than pure fixed-income investments. Fund managers of such funds also enjoy the flexibility of varying the proportion of equity and fixed income investments in response to market conditions. An upswing may prompt them to hold a relatively higher share of equity in order to maximize gains, whereas a downturn sees them turning to fixed-income investments to stem losses. Below, we will share with you four top-rated balanced mutual funds . Each has earned a Zacks Mutual Fund Rank #1 (Strong Buy) as we expect the fund to outperform its peers in the future. RidgeWorth Moderate Allocation Strategy Fund A (MUTF: SVMAX ) seeks capital growth over the long run and current income. In order to achieve its objective, SVMAX invests 40-60% of its assets in underlying funds that predominantly invest in equity securities. It also invests 30-60% of its assets in funds investing in fixed-income securities. SVMAX invests the rest of its assets in cash and cash equivalents, which also include unaffiliated money market funds, the U.S. government affiliated securities and short-term paper. The RidgeWorth Moderate Allocation Strategy A fund has a three-year annualized return of 4.4%. SVMAX has an expense ratio of 0.67% as compared to the category average of 0.89%. T. Rowe Price Personal Strategy Balanced Fund No Load (MUTF: TRPBX ) invests approximately 60% of its assets in stocks and 40% of its assets in bonds. TRPBX also invests in money market securities. It seeks to achieve maximum total return through capital appreciation and income. The T. Rowe Price Personal Strategy Balanced fund has a three-year annualized return of 5.6%. Charles M. Shriver is the fund manager since 20 1 1. John Hancock Funds Lifestyle Aggressive Portfolio A (MUTF: JALAX ) invests most of its assets in underlying funds, which in turn focus on acquiring equity securities. JALAX’s assets also get invested in underlying funds that primarily invest in fixed-income securities. It invests in a wide range of underlying funds that allocate their assets in equity securities of companies of any size throughout the globe. The John Hancock Funds Lifestyle Aggressive A fund has a three-year annualized return of 5. 1%. JALAX has an expense ratio of 0.47% as compared to the category average of 0.8 1%. Fidelity Balanced Fund No Load (MUTF: FBALX ) seeks income and capital growth. FBALX invests around 60% of its assets in equity securities and the remainder in a balance of debt securities including bonds and lower-quality debt instruments. FBALX is expected to invest a minimum of one-fourth of its assets in fixed-income senior securities. It invests in securities throughout the globe. The Fidelity Balanced fund has a three-year annualized return of 7.7%. As of January 20 16, FBALX held 1, 186 issues with 2.45% of its assets invested in Fidelity Cent Invt Portfolios. Original post

Best And Worst Q1’16: Large Cap Blend ETFs, Mutual Funds And Key Holdings

The Large Cap Blend style ranks first out of the twelve fund styles as detailed in our Q1’16 Style Ratings for ETFs and Mutual Funds report. Last quarter , the Large Cap Blend style ranked second. It gets our Attractive rating, which is based on aggregation of ratings of 35 ETFs and 873 mutual funds in the Large Cap Blend style. See a recap of our Q4’15 Style Ratings here. Figures 1 and 2 show the five best and worst-rated ETFs and mutual funds in the style. Not all Large Cap Blend style ETFs and mutual funds are created the same. The number of holdings varies widely (from 19 to 1507). This variation creates drastically different investment implications and, therefore, ratings. Investors seeking exposure to the Large Cap Blend style should buy one of the Attractive-or-better rated ETFs or mutual funds from Figures 1 and 2. Figure 1: ETFs with the Best & Worst Ratings – Top 5 Click to enlarge * Best ETFs exclude ETFs with TNAs less than $100 million for inadequate liquidity. Sources: New Constructs, LLC and company filings The SPDR MSCI USA Quality Mix ETF (NYSEARCA: QUS ), the FlexShares US Quality Large Cap Index ETF (NASDAQ: QLC ), and the SPDR MFS Systematic Core Equity ETF (NYSEARCA: SYE ) are excluded from Figure 1 because their total net assets are below $100 million and do not meet our liquidity minimums. Figure 2: Mutual Funds with the Best & Worst Ratings – Top 5 Click to enlarge * Best mutual funds exclude funds with TNAs less than $100 million for inadequate liquidity. Sources: New Constructs, LLC and company filings The SPDR Dow Jones Industrial Average ETF (NYSEARCA: DIA ) is the top-rated Large Cap Blend ETF and the Vulcan Value Partners Fund (MUTF: VVPLX ) is the top-rated Large Cap Blend mutual fund. Both earn a Very Attractive rating. The PowerShares Russell 1000 Equal Weight Portfolio ETF (NYSEARCA: EQAL ) is the worst-rated Large Cap Blend ETF and the Goldman Sachs Absolute Return Tracker Fund (MUTF: GARTX ) is the worst-rated Large Cap Blend mutual fund. EQAL earns a Neutral rating and GARTX earns a Very Dangerous rating. The Travelers Companies (NYSE: TRV ) is one of our favorite stocks held by DIA and earns a Very Attractive rating. Since 2004, Travelers has grown after-tax profit ( NOPAT ) by 14% compounded annually. Travelers has tripled its return on invested capital ( ROIC ) from 4% in 2004 to 12% on a trailing-twelve-months (TTM) basis and has generated positive free cash flow every year of the past decade. It should come as no surprise then that TRV is up 80% over the past five years. What may surprise some, though, is that TRV remains significantly undervalued. At its current price of $107/share, TRV has a price to economic book value ( PEBV ) ratio of 0.6. This ratio means that the market expects that Travelers’ NOPAT will permanently decline by 40%. If Travelers can grow NOPAT by just 2% compounded annually for the next decade , the stock is worth $182/share today – a 70% upside. Clean Harbors Inc. (NYSE: CLH ) is one of our least favorite stocks held by GARTX and earns a Very Dangerous rating. Clean Harbors had built a successful business prior to the global recession in 2008-2009. Unfortunately, the company has failed to regain the heights of 2008-2009. Since 2010, Clean Harbors has grown NOPAT by only 3% compounded annually while its NOPAT margin has declined from 8% to 3%. Similarly, the company’s ROIC has fallen from 13% in 2010 to a bottom-quintile 3% on a TTM basis. Meanwhile, the stock remains valued as if Clean Harbors were still operating at pre-recession levels, which makes it greatly overvalued. To justify its current price of $42/share, Clean Harbors must maintain its 2014 pre-tax margin (7.1%) and grow NOPAT by 12% compounded annually for the next 16 years . This expectation seems rather optimistic given Clean Harbors deteriorating margins and profits since 2010. Figures 3 and 4 show the rating landscape of all Large Cap Blend ETFs and mutual funds. Figure 3: Separating the Best ETFs From the Worst Funds Click to enlarge Sources: New Constructs, LLC and company filings Figure 4: Separating the Best Mutual Funds From the Worst Funds Click to enlarge Sources: New Constructs, LLC and company filings D isclosure: David Trainer and Kyle Guske II receive no compensation to write about any specific stock, style, or theme. Disclosure: I/we have no positions in any stocks mentioned, and no plans to initiate any positions within the next 72 hours. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it. I have no business relationship with any company whose stock is mentioned in this article.

Ivy Portfolio March Update

The Ivy Portfolio spreadsheet tracks the 10-month moving average signals for two portfolios listed in Mebane Faber’s book The Ivy Portfolio: How to Invest Like the Top Endowments and Avoid Bear Markets . Faber discusses 5, 10, and 20 security portfolios that have trading signals based on long-term moving averages. The Ivy Portfolio spreadsheet on Scott’s Investments tracks both the 5 and 10 ETF Portfolios listed in Faber’s book. When a security is trading below its 10-month simple moving average, the position is listed as “Cash”. When the security is trading above its 10-month simple moving average, the position is listed as “Invested”. The spreadsheet’s signals update once daily (typically in the late evening) using dividend/split adjusted closing price from Yahoo Finance. The 10-month simple moving average is based on the most recent 10 months, including the current month’s most recent daily closing price. Even though the signals update daily, it is not an endorsement to check signals daily or trade based on daily updates. It simply gives the spreadsheet more versatility for users to check at his or her convenience. The page also displays the percentage each ETF within the Ivy 10 and Ivy 5 Portfolio is above or below the current 10-month simple moving average, using both adjusted and unadjusted data. If an ETF has paid a dividend or split within the past 10 months, then when comparing the adjusted/unadjusted data you will see differences in the percent an ETF is above/below the 10-month SMA. This could also potentially impact whether an ETF is above or below its 10-month SMA. Regardless of whether you prefer the adjusted or unadjusted data, it is important to remain consistent in your approach. My preference is to use adjusted data when evaluating signals. The current signals based on February 29th’s adjusted closing prices are below. This month VNQ , TIP and BND are above their moving average and the balance of the ETFs are below their 10-month moving average. The spreadsheet also provides quarterly, half year, and yearly return data courtesy of Finviz . The return data is useful for those interested in overlaying a momentum strategy with the 10-month SMA strategy: Click to enlarge I also provide a “Commission-Free” Ivy Portfolio spreadsheet as an added bonus. This document tracks the 10-month moving averages for four different portfolios designed for TD Ameritrade, Fidelity, Charles Schwab, and Vanguard commission-free ETF offers. Not all ETFs in each portfolio are commission free, as each broker limits the selection of commission-free ETFs and viable ETFs may not exist in each asset class. Other restrictions and limitations may apply depending on each broker. Below are the 10-month moving average signals (using adjusted price data) for the commission-free portfolios: Click to enlarge Click to enlarge