moneylifeshow-imageFundX Chief Investment Officer Jason Browne answered investors’ questions about stock and bond funds on the “Hold it or Fold it” segment of the MoneyLife Show with Chuck Jaffe.

Listeners from across the country asked Jason for his take on dividend ETFs, bond funds, and two funds that sound less risky than they actually are.

DoubleLine Core Fixed Income (DBLFX) 

“This is a good fund. We owned it for quite some time and we actually just sold it last month. We do own DoubleLine Total Return, which stayed highly ranked.  Given that, I’d call DBLFX a sell, and go with DLTNX instead.”

PIMCO Fundamental IndexPlus Absolute Return (PIXAX)

“With absolute return in the name, it sounds like it’s going to add some stability, but it’s actually a very volatile fund. If I did buy this, I would use it sparingly and I wouldn’t take as big of a position as I would in more of a core fund. This fund also hasn’t done as well, so I would call it a sell.”

iShares MSCI USA Quality Factor ETF (QUAL)

“This is an ETF that’s in our newsletter and rated as a Buy. It’s a core fund, a large-cap U.S. fund that emphasizes companies depending on the quality of their earnings and tends to invest in a growth manner. It’s doing well.”

iShares Core Dividend (HDV)

“This ETF is a buy. It was a solid hold at the start of the year, but it’s come up the ranks as the market’s dropped.”

Market Vectors Wide Moat ETF (MOAT)

“You listen to the word ‘moat’ and you think it’s defensive, but it’s really not. It owns 20 different large-cap stocks. The name’s great, but the reality is that it’s not holding up any better than the market, and it didn’t do as well last year. I’d call it a sell.”

Click here to listen to Jason’s full interview:


A Volatile Start to the Year

February 2, 2016

mountain_climberStocks turned in their worst January performance since 2009. The large-cap S&P 500 index lost -5.0% as did the MSCI Emerging Markets and EAFE indexes, and the small-cap Russell 2000 sank -8.6%. Slowing growth in China was cited as a catalyst for the decline, so it’s not surprising that Chinese stocks were among the hardest hit, down as much as 15%.

According to AAII, investor pessimism has surged lately to levels last seen in 2009, but history has shown that short-term events have little long-term impact on the value of stocks, and that the best times to buy stocks has been when everyone else is selling. And history also shows that most investors do just the opposite, sell into stock market declines and buy into mature bull market rallies.

What to do now

We know that we have to accept volatility if we invest in stocks because stocks are inherently volatile. Over time, investors have been rewarded with higher returns than less volatile investments like bonds and cash. Since 1950, stocks, as measured by the S&P 500, have gained an average of 11% annualized compared to 6% for bonds. Volatility can make it tough for investors to hold stocks long enough to experience those terrific long-term results, but if we can stick it out, those gains can change our lives.

Focus on funds with strong recent returns

In sell offs, recently leading areas of the market are often hit hardest and that’s what we saw in January as previously strong U.S. large-cap growth funds and biotech funds sank. But some funds, like dividend funds and utilities sector funds, held up better than others. Continue reading “A Volatile Start to the Year” »


February 2016 Fund & ETF Changes

February 1, 2016

We don’t just list any fund or ETF in NoLoad FundX. We screen through the 25,000 funds available in search of funds that are readily available to new investors, have reasonable holding times and trade well. (Learn more about how we select funds here.) This month, we’ve added many new funds and ETFs that are […]

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Is this volatility normal? (video)

January 26, 2016

It’s been a volatile start to the year, and this can make us feel like there’s something wrong with the market or with our strategy. FundX CIO Jason Browne offers some useful perspective on volatility. You’ll learn why sell-offs feel so scary and what we can do about it. Click below to watch Having trouble […]

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What to do When the Market Falls

January 20, 2016

The market has fallen sharply since the start of 2016. Many global markets and some funds have already experienced bear market declines. These aren’t easy times to be invested in stock funds, but we know that corrections are a normal part of long-term investing. Why we invest It can help to take a step back […]

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What Worked in 2015 & Where to Invest Now

January 6, 2016

With major stock and bond indexes barely positive, some see 2015 as a year when nothing worked, but there were some areas of the stock and bond markets that worked far better than others — and those differences in performance are opportunities for active investors like us. U.S. large-cap growth led U.S. large-cap stocks were the […]

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January 2016 Fund & ETF Changes

January 5, 2016

Funds change over time, and we change our fund listings in response. We list any changes to the funds and ETFs we cover in each monthly newsletter and online. Newly Added  We added Vanguard Total International Bond ETF (BNDX) to our bond fund listings this month, and we also bought it in our model bond […]

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Set Yourself up for Investing Success in 2016

December 29, 2015

Set yourself up for real long-term investing success in 2016 with our best tips on how to get invested, manage risk, and stay on track to reach your long-term goals. Over the past year, we’ve shared some of what we’ve learned in our 46 years of fund investing, and now we’ve collected all our most […]

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Hold it or Fold it? FundX President Janet Brown’s Take on 5 Funds & ETFs

December 22, 2015

Is now a good time to own emerging markets funds? Are precious metals really a safe haven? FundX President Janet Brown answered these questions and more on the MoneyLife online radio show with Chuck Jaffe. Janet’s answers to investor questions about 5 funds and ETFs: 1. State Street Emerging Markets (SSEMX) “This is a very good fund […]

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What Fund Investors Can Do About Rising Rates

December 17, 2015

The Federal Reserve raised interest rates this week for the first time in nearly a decade, and this could affect markets in the coming year. To help you prepare, FundX President Janet Brown shared a four-step process that has helped her adapt to changing markets for over 40 years. Click here to read Janet’s Forbes […]

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