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Which No-Load Mutual Funds Are The Best?

For your retirement or taxable investment accounts, consider these diverse no-load fund selections.

August 29, 2021

 

Fidelity Blue Chip Growth Fund (FBGRX) 

FBGRX invests in companies that are market leaders, which meansthese stocks are less hazardous than small- or mid-cap stocks. The top tenholdings account for more than 40% of the total portfolio. Amazon.com (AMZN), Apple (AAPL), Microsoft Corp. (MSFT), and Facebook (FB) are among them, but the fund also has Tesla (TSLA) as a top position, which has boosted the fund's performance. The stock of Tesla has increased by almost 200 percent in the last year. FBGRX is highly invested in information technology, a sector that has seen rapid growth in the last year alone. It has also outperformed the Russell 1000 Growth index over the last ten years. 

Vanguard Emerging Markets Bond Fund (VEMBX) 

VEMBX is a fund that invests in emerging market bonds. EM funds mayhave poorer credit quality than developed-country bonds, making them riskierassets, but they tend to have greater yields. EM bonds may appeal to fixed-income investors seeking higher returns and diversification, as they have the potential to perform well. The average one-year return on VEMBX is a respectable 14 percent. Turkey, Brazil, Russia, South Africa, and other countries are among the fund's 200 bond holdings. With low interest rates in the United States and lower-than-expected returns from investment-grade bonds, the potential of investing in developing market bonds appeals to investors. 

Schwab S&P 500 Index Fund (SWPPX) 

SWPPX invests in about 500 of the top firms in the United States,with the S&P 500 as its benchmark. Information technology accounts foraround 26% of the portfolio's sector weight, with Apple, Microsoft, Facebook, and Alphabet among the top ten holdings (GOOG, GOOGL). "An index fund should provide broad exposure to large-cap U.S. stocks at an exceptionally low cost," says Martha Post, chartered financial analyst and chief operating officer of Team Hewins, a wealth management firm.     

Fidelity Small Cap Value Fund (FCPVX) 

According to Mary Ellen McGonagle, senior managing director ofstocks for educational stock market platform Simpler Trading, investors shouldconsider expanding exposure to small-cap stocks and value stocks because they both perform well during economic growth and recovery. "The Fidelity Small Cap Value Fund is appropriate," she explains, "since it invests in undervalued, smaller companies that will profit from the current period of strong economic development." FCPVX has proven to be a solid performer. 

Vanguard Value Index Fund (VVIAX) 

VVIAX invests in undervalued large-cap stocks, according toanalysts. Experts feel that as the economy continues to open up, value stocksthat are ready to thrive will profit. The fund follows the performance of the CRSP U.S. Large Cap Value index, which is mostly comprised of large-cap value stocks, and holds each stock at a similar weighting to the index. Investors seeking dividends and growth potential should consider VVIAX, which has a low expense ratio of 0.05 percent and a current yield of 2.11 percent. With a 10-year average annual return of 12.16 percent, the fund has nearly matched the returns of the Spliced Value index benchmark.