FundX CEO Janet Brown’s Take on 5 Funds & ETFs

November 20, 2018

How do you decide where to invest? 

We invest on what is actually happening in the market rather than what we think is going to happen,” FundX CEO Janet Brown said on the MoneyLife Show with Chuck Jaffe on November 1, 2018.

There are often many smart people with good reasons why one part of the market should do well, Janet said, but these predictions often don’t pan out.

International funds are one example: analysts thought international markets were undervalued and had more room to run, but foreign markets haven’t done well this year. Instead, U.S. markets have been the place to be.

“There will be a time to come when internationals are going to bring in strong returns,” Janet said. But “we wait until there’s a little bit of sustained performance that we trust before we go in.”

Janet’s Take on 5 Funds and ETFs

In the Hold it or Fold it part of the show, Janet answered listener questions about balanced funds, total market ETFs, emerging market funds and a sustainable ETF.

1. T Rowe Price Capital Appreciation (PRWCX)

This is a great fund, and we own it in a lot of our conservative growth portfolios and would continue to buy it. Unfortunately, it’s closed to new investors. So, unless you own it or work with an adviser who has access like we do you may not be able to get in.

It’s really one of the few balanced funds that uses a very flexible approach to stock and bond selections, and it has a good record in terms of risk-adjusted long-term performance.”

2. American Funds Global Balanced (GBLEX)

We’re certainly global investors. When there’s returns out of the U.S. we’re there. But I think there are far better places to be right now than this global balanced fund, so I would sell it.”

3. Vanguard Total Stock Market ETF (VTI)

“Many people want to cover all bases and have it all. The reality is there’s almost always something better. So right now, I would buy higher-ranked ETF like DIA, HDV, or VIG.”

4. Vanguard FTSE Emerging Markets ETF (VWO)

“This is a great fund, but we’re not going to buy emerging markets until they’re back in favor. And this is clearly not a good environment for emerging markets.”

5. Vident International Equity Fund (VIDI)

“This is a fund that really looks at and screens for environmental, social, and governance. I’d buy when the timing is right, but current performance is lousy and are simply too many better places to invest right now.”

Click here to listen to Janet full interview on the Money Life Show.

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