FundX CIO Jason Browne’s Take on Five Funds and ETFs

May 8, 2017

Is this a good time to own dividend ETFs?

What about growth funds?

FundX Chief Investment Officer Jason Browne answered these questions and more on the MoneyLife Show with Chuck Jaffe.

Jason explained what we look for in a fund:

“From our perspective, it’s all about can we understand how much risk a fund is taking, and is a fund doing well compared to other funds with similar risk? If the answer is yes, we’ll buy in.”

He also talked about when to buy an S&P 500 fund, and why he believes investors are probably better off in an emerging market fund than in a frontier market fund.

FundX CIO Jason Browne’s take on five funds and ETFs

PowerShares High Yield Dividend Achievers (PEY) 

“PEY is an ETF that we have held in our portfolios until just about a month ago. It had done really well, and we owned it for over a year. It’s a perfectly good fund, but it has fallen out of favor and we’ve sold it.

We have nothing against the fund itself, but there are a lot of other funds with similar risk that are now doing better.”

Vanguard Mega Cap Growth ETF (MGK)

“MGK is actually one of the very few ETFs that are currently ranked as a Buy. We own it, and we continue to add to it. It’s doing well. There are other actively managed mutual funds that are slightly higher ranked in our system, but MGK did make the cut.”

SPDR S&P 500 (SPY)

“At this current point, compared to funds with similar risk, SPY is actually a sell. So if you’re going to be an active manager and you’re going to use our Upgrading strategy, I’d say to sell it because there are so many other choices that are currently doing better.

On the other side, if you’re looking to put some money in the market, I can’t argue against SPY. It’s a whole lot better than sitting in the sidelines trying to figure out your strategy.”

Baron Partners (BPTRX) 

“It’s currently a Buy. This is a more aggressive fund, however. We own this fund, and we continue to purchase it. “

Wasatch Frontier Emerging Small Countries (WAFMX)

“Sell. We find that people are much more successful if they stick with the core tried-and-true areas. Emerging markets, for example, compared to frontier markets are going to have a lot more liquidity.

So I would avoid this fund altogether. I like Wasatch as a fund family, but performance of this fund isn’t a huge stand-out, and there are other risks on top of that just because of where it invests.”

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