Tag Archives: etfs

5 Top-Rated MassMutual Mutual Funds To Invest In

Massachusetts Mutual Life Insurance Company, commonly known as MassMutual, is one of the leading asset managers by virtue of managing around $600 billion of assets along with its affiliates. Founded in 1851, MassMutual uses a multi manager approach to offer services including life policies, money management, and retirement planning to its clients throughout the globe. The company and its subsidiaries, which include OppenheimerFunds, provide investment opportunities across a number of mutual funds from different categories. Below we share with you 5 top-rated MassMutual mutual funds. Each has earned a Zacks Mutual Fund Rank #1 (Strong Buy) and is expected to outperform its peers in the future. MassMutual Premier Disciplined Growth Fund A (MUTF: MPGAX ) primarily focuses on acquiring common stocks of growth-oriented companies. MPGAX invests in securities of companies with more than $200 million of market capitalization in order to provide total return higher than the Russell 1000 Growth Index. The MassMutual Premier Disciplined Growth A fund has a three-year annualized return of 12.4%. As of September 2015, MPGAX held 458 issues, with 7.31% of its assets invested in Apple Inc. (NASDAQ: AAPL ). MassMutual Premier Main Street Fund (MUTF: MMSYX ) seeks a high level of total return. Though MMSYX invests in common stocks of companies irrespective of market capitalization, it currently emphasizes investing in securities of companies having market capitalization similar to those listed in the Russell 1000 Growth Index. MMSYX may also invest a maximum of 15% of its assets in securities of companies located in foreign lands. The MassMutual Premier Main Street Service fund has a three-year annualized return of 10.8%. MMSYX has an expense ratio of 0.86% as compared to the category average of 1.04%. MassMutual Premier Balanced Fund (MUTF: MMBLX ) invests in both equity and fixed income producing securities. MMBLX allocates between 40% and 70% in domestic equity securities, and invests between 1% and 15% in foreign equity securities. MMBLX invests 30-50% of its assets in securities that are expected to provide fixed income, and allocates not more than 30% of its assets in the money market instruments. The MassMutual Premier Balanced Administrative fund has a three-year annualized return of 5.5%. As of September 2015, MMBLX held 1,166 issues, with 5.83% of its assets invested in Us 5yr Note (Cbt) Dec15 Xcbt 20151231. MassMutual Premier International Equity Fund (MUTF: MYIEX ) seeks growth of capital over the long run. MYIEX invests a large chunk of its assets in common stocks of non-U.S. companies that are believed to have impressive growth prospects. MYIEX allocates its assets in companies located in both emerging as well as developed countries. The MassMutual Premier International Equity Service fund has a three-year annualized return of 3.6%. George R. Evans is one of the fund managers of MYIEX since 1994. MassMutual Select Diversified Value Fund (MUTF: MDDLX ) maintains a diversified portfolio by investing the lion’s share of its assets in stocks of well-known, large-cap companies. MDDLX generally invests in securities of domestic companies that are believed to be undervalued. MDDLX may invest not more than 25% of its assets in securities of foreign companies and ADRs. The MassMutual Select Diversified Value Administrative fund has a three-year annualized return of 9.3%. MDDLX has an expense ratio of 0.88% as compared to the category average of 1.11%. Original Post

The 60/40 Portfolio Is Dead; Here Is Its Replacement

The following is a proposal I put together for a new client: Click to enlarge As you can see, we do things a little differently around here. Traditional stocks make up less than 40% of the portfolio, with the rest sitting in non-correlated assets outside of the stock market. We invest in everything from options-writing funds to medical accounts receivables and everything in between. The result is that we get most of the safety you would expect from a 60/40 stock/bond portfolio but without the loss of expected return. Our goal is to give you stock-like returns with the risk profile of a blended portfolio. Why Invest in Alternatives? You probably have a good grasp of why diversification is important. Throwing out the financial jargon, it essentially boils down to not putting all of your eggs in one basket. But it also gets a lot more sophisticated than that. Many investors feel that they have adequate diversification because their assets are spread across several stocks or mutual funds. And to an extent, they are right. Owning multiple stocks reduces the risk of downside from any single position. But there is also a major problem with this: Correlation. If Apple (NASDAQ: AAPL ) and Microsoft (NASDAQ: MSFT ) stock prices move together in lockstep, you’re not really getting much in the way of diversification by owning both. And in a real bear market, virtually all stocks drop together. True diversification means owning assets that do not move together. Investment A can go up, down or sideways, and it should have little or no impact on Investment B. This is where the beauty of an alternative portfolio comes into play. We can achieve “stock like” returns in the range of 7%-10% per year without the volatility that comes with stocks. Why the 60/40 Portfolio is Dead Alternative assets weren’t particularly popular in 1980. There is a reason for that. Back then, traditional bonds offered a respectable return. A blended 60/40 portfolio of stocks and bonds offered a solid expected return. Flash forward to present day. At current bond yields, investors will be lucky to get a 2% return in bonds. And compounding the situation, stocks are also expensive by historical measures and priced to deliver sub-par returns. Click to enlarge Accepting a traditional asset allocation is accepting disappointing returns in the years ahead. If you want better performance, we need to look elsewhere. Introducing the New 60/40 Portfolio Sizemore Capital Management custom builds portfolios based on the client’s preferences and eligibility. The following is a sample allocation: Click to enlarge With the market looking overpriced and expected to deliver below-average returns, we need better alternatives. And thankfully, we have them. The following represent Sizemore Capital Management’s expected returns of the assorted asset classes in our model: Click to enlarge We should be clear that these are only estimates. Realized returns will vary and may be significantly higher or lower. But based on current valuations and historical performance, we consider these estimates reasonable. We’re Not Alone While ordinary investors have traditionally invested in stocks, bonds and CDs, wealthy investors and institutions have always had a broader allocation. Consider the case of the Harvard University endowment fund. As of 2015, the Harvard endowment fund had only 3% of its funds in stocks. It has another 18% in private equity and 12% in real estate. The rest is spread across everything from timberland to absolute returns hedge funds. Let’s stop and ask an obvious question: If it’s good for trustees of Harvard, would it not also be good for you? Source: Harvard Endowment Allocation Not all of the alternative investments discussed will be appropriate for all investors. But we believe strongly that every investor can benefit from a proper allocation to alternative investments. Disclaimer: This article is for informational purposes only and should not be considered specific investment advice or as a solicitation to buy or sell any securities. Sizemore Capital personnel and clients will often have an interest in the securities mentioned. There is risk in any investment in traded securities, and all Sizemore Capital investment strategies have the possibility of loss. Past performance is no guarantee of future results. Original Post

Dual ETF Momentum Update

Scott’s Investments provides a free “Dual ETF Momentum” spreadsheet, which was originally created in February 2013. The strategy was inspired by a paper written by Gary Antonacci and available on Optimal Momentum . Antonacci’s book, Dual Momentum Investing: An Innovative Strategy for Higher Returns with Lower Risk , also details Dual Momentum as a total portfolio strategy. My Dual ETF Momentum spreadsheet is available here , and the objective is to track four pairs of ETFs and provide an “Invested” signal for the ETF in each pair with the highest relative momentum. Invested signals also require positive absolute momentum, hence the term “Dual Momentum”. Relative momentum is gauged by the 12-month total returns of each ETF. The 12-month total returns of each ETF is also compared to a short-term Treasury ETF (a “cash” filter) in the form of the iShares Barclays 1-3 Treasury Bond ETF (NYSEARCA: SHY ). In order to have an “Invested” signal, the ETF with the highest relative strength must also have 12-month total returns greater than the 12-month total returns of SHY. This is the absolute momentum filter which is detailed in depth by Antonacci, and has historically helped increase risk-adjusted returns. An “average” return signal for each ETF is also available on the spreadsheet. The concept is the same as the 12-month relative momentum. However, the “average” return signal uses the average of the past 3-, 6-, and 12-(“3/6/12”) month total returns for each ETF. The “invested” signal is based on the ETF with the highest relative momentum for the past 3, 6 and 12 months. The ETF with the highest average relative strength must also have average 3/6/12 total returns greater than the 3/6/12 total returns of the cash ETF. Portfolio123 was used to test a similar strategy using the same portfolios and combined momentum score (“3/6/12”). The test results were posted in the 2013 Year in Review and the January 2015 Update . Below are the four portfolios along with current signals. “Risk-Off” is the current theme among all four portfolios: Return Data Provided by Finviz Click to enlarge As an added bonus, the spreadsheet also has four additional sheets using a dual momentum strategy with broker-specific commission-free ETFs for TD Ameritrade, Charles Schwab, Fidelity, and Vanguard. It is important to note that each broker may have additional trade restrictions, and the terms of their commission-free ETFs could change in the future. Disclosure: None.