10 Stock Funds for 2016

November 24, 2015

year 2014No one knows today which funds or ETFs will ultimately bring in the best returns in 2016, but funds that have done well recently tend to continue to outperform in ensuing quarters, and those are the funds that FundX President Janet Brown selected for BottomLine Personal’s 10 Stock Funds for 2016. Click here to see Janet’s fund picks for 2016.

Even strong performing stock funds will be volatile at times, so investors in these funds should be prepared to ride through up and down markets. “I expect a return to ‘normal’ volatility after an unusually long placid period over the past several years. ‘Normal’ typically has meant a 10% correction annually plus a few 5% pullbacks,” Janet wrote.

If you can handle market-level volatility, the first two funds are worth considering; for less aggressive investors, the third fund might be a good fit:

1. SPDR Consumer Discretionary ETF (XLY)

For aggressive investors, Consumer Discretionary Select Sector SPDR ETF (XLY) is one of the leading sector funds in NoLoad FundX and it’s also in the newsletter’s model growth portfolio.

“This ETF provides low-cost exposure to one of the best-performing sectors in the S&P 500 this year,” Janet wrote. “The fund invests in about 90 companies that are dominant in their categories, including Amazon, Walt Disney, Home Depot, Nike and Netflix.” We suggest investors take smaller positions in more concentrated funds like XLY.

2. Brown Advisory Sustainable Growth (BAWAX)

We believe diversified funds should be the core of a growth portfolio, and a leading diversified fund with market-level risk is Brown Advisory Sustainable Growth (BAWAX). “Like other so-called socially responsible funds, it weeds out tobacco and weapons firms, but in addition, it favors businesses that take positive steps such as adopting environmentally friendly practices,” Janet wrote.

BAWAX is available without a transaction fee at most major brokers.

3. James Balanced Golden Rainbow (GLRBX)
Continue reading “10 Stock Funds for 2016” »


forbesimageMany mutual funds distribute capital gains and income to investors at the end of the year, and this year could bring big payouts.  

To help you prepare, FundX President Janet Brown shared five things you need to know about distributions with Forbes.

Click here to read Mutual Fund Alert: Expect Big Taxable Distributions This Year.

You’ll learn how you can avoid buying into an unexpected tax liability and you’ll see why distributions can make it seem like your fund lost money when it really hasn’t.

Here’s the first three things you’ll need to know:

1. Distributions can add to your tax bill

If you hold funds in a taxable account, distributions are taxable to you, whether you take them in cash or–as most people do–have them reinvested to buy new shares. “Trade carefully at year-end. “If you buy a fund right before it distributes, you’ll be buying a tax liability before you’ve even participated in the fund’s performance.” Continue reading “Mutual Fund Alert: Expect Big Taxable Distributions This Year” »


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An investor called us in the midst of a market correction. The market and her portfolio were dropping, and she was concerned. She knew the stock market could be volatile, but she didn’t expect that her portfolio would be so volatile. “I own 10 funds,” she said. “Shouldn’t that help in down markets?” Owning a […]

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