August 2014 Fund & ETF Changes

by noloadfundx on August 1, 2014

Each month, we highlight changes to the funds and ETFs listed in the monthly newsletter and online.

Added to the Monthly Newsletter

We added Guggenheim S&P 500 Pure Growth (RPV) to Class 3′s diversified fund listings.

Closed to New Investors

T. Rowe Price Capital Appreciation, which we list in Class 4 total return funds, has now closed to new investors.


Do ETFs Cause Investors to Trade Too Often?

by noloadfundx on July 29, 2014


Exchange-traded funds (ETFs) trade throughout the day like stocks, while mutual funds trade just once a day. Some investors believe that this is an advantage: they like that they can sell an ETF immediately if market conditions change.

But the ability to trade ETFs at any time can prompt investors to trade more frequently than necessary.  It may also encourage investors to buy riskier ETFs because investors may think they can avoid the risk by quickly selling these ETFs.

Since our Upgrading strategy uses funds to adapt to changing market leadership, some investors assume that we’d be better off using only ETFs. But our research and real-world experience shows that using a combination of ETFs and regular mutual funds is better than using ETFs exclusively — and we aren’t the only ones to come to this conclusion.

Mark Hulbert reported in a February 12, 2014 piece on that the ETF-only portfolios he tracks in the Hulbert Financial Digest haven’t performed as well as fund-only portfolios—even when both portfolios are managed by the same advisor. Why? “The ability to get into and out of [ETFs] at any time during the day, as well as the ability to sell them short, have seduced advisers into trading too often,” Hulbert wrote.

Larry Swedroe’s July 16, 2014 post focused on a 2013 Yale study that found “statistically significant underperformance of the ETF portion of investor portfolios versus their non-ETF portion.” Swedroe noted that “the authors found that poor performance was caused by bad market timing.”

So what should investors do?

Continue reading “Do ETFs Cause Investors to Trade Too Often?” »


FundX CIO Jason Browne’s MoneyLife Market Call

July 22, 2014

FundX Chief Investment Officer Jason Browne talked with Chuck Jaffe on the MoneyLife show on July 17, 2014. The show, Jaffe explains, aims to be a place to “talk stocks, funds, markets, and more with really smart folks.” The first four minutes of the interview provide a good introduction to FundX’s unconventional Upgrading strategy. Jason […]

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Janet Brown’s July 2014 Market Update (Video)

July 17, 2014

It’s been a good year so far for both stocks and bonds and in her latest video, FundX President Janet Brown shares where FundX stock and bond portfolios are invested. Click below to watch.

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On Forbes: Diversity Leads – What to Buy Now

July 15, 2014

A diverse group of funds lead half way through the year, FundX President Janet Brown wrote in her latest piece for Forbes, “Diversity Leads at the Half: What Investors Should Buy Now.” Janet pointed out that the Buys in NoLoad FundX include both large-cap funds, like Guggenheim S&P 500 Pure Growth (RPG), and smaller-cap funds, […]

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No Investment Approach Always Works

July 10, 2014

“Aren’t there some funds that have outperformed the market every year?,” a subscriber recently asked us. It’s easy to assume that among the thousands of funds available, a few of them have been able to consistently beat the market. But as Mark Hulbert wrote in his June 27, 2014 Wall Street Journal article, “No investment […]

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Is Sustainable Investing a ‘Financial Sacrifice’?

July 8, 2014

Does sustainable responsible investing (SRI) require investors to give up returns? That was the premise of The Financial Sacrifice of Socially Responsible Investing, a June 2, 2014 interview with Wharton professor Olivia S. Mitchell on the Wall Street Journal’s The Short Answer blog. Mitchell said that because SRI investors limit their investment choices by screening […]

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Stocks & Bonds Look Strong at the Half

July 3, 2014

June was another strong month for U.S. markets. Large U.S. indexes ended the quarter up 5%, adding to solid year-to-date gains. Past 12-month returns are far above average, building on tremendous stock returns in 2013. This year’s rising markets have lifted many different kinds of funds up the ranks and into our portfolios. Leaders this […]

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July 2014 Fund & ETF Changes

July 2, 2014

Each month, we highlight changes to the funds and ETFs listed in the monthly newsletter and online. Moved to Online Supplement Class 2 T. Rowe Price New Horizon (PRNHX) was moved to the online supplement because the fund is only available directly from T. Rowe Price. We aim to include funds that are available at […]

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Look Who’s Beating the Market

June 30, 2014

NoLoad FundX was one of just three investment newsletters – and the only mutual fund newsletter – to beat the market since 1980, Mark Hulbert reported in his June 27, 2014 Wall Street Journal article “Look Who’s Beating the Market”. Click here to read “Look Who’s Beating the Market”. Hulbert is a respected third-party authority […]

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