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Best mutual funds for 2018

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Are you looking for the best mutual funds to invest in 2018? Best performing mutual funds, best Vanguard mutual funds, and best Fidelity mutual funds?

If so, you’re at the right place. In this Finstead Insights post, we’ll provide some good choices for investing in mutual funds. Our analysis was refreshed for 2018, and here you’ll find some good ideas for investing in U.S. and International Equity, Fixed Income (Taxable and Tax Exempt), and Specialty (Technology and Healthcare) mutual funds.
Finstead is not associated with any fund issuers, so our perspective is relatively unbiased compared to what you may find elsewhere in the press.

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Best mutual funds for 2018

  1. 1. Finstead Perspectives: Top Mutual Fund Choices Best Mutual Funds for 2018: Top 40 Mutual Funds hi@finstead.comwww.finstead.comwww
  2. 2. Copyright © 2018, Finstead. All rights reserved. Topics 1. Introduction: Our Selection Methodology 2. Top Large-Cap Mutual Funds 3. Top International Mutual Funds 4. Top Specialty and Sector Mutual Funds 5. Top Taxable Fixed Income Mutual Funds 6. Top Tax-Exempt Fixed Income Mutual Funds 7. Top Balanced Mutual Funds 2
  3. 3. Copyright © 2018, Finstead. All rights reserved. Top Mutual Funds Selection Methodology  In this presentation we are offering some vetted ideas for investing in mutual funds across the different segments:  U.S. and International Equity;  Specialty (Technology and Healthcare);  Fixed Income (Taxable and Tax Exempt);  Balanced (Stock/Bond Mutual Funds).  Here are our search criteria for the best mutual funds:  Popular among investors, demonstrated by assets under management north of $1 Billion;  Above-average returns (in their respective segments);  No sales loads or 12b-1 fees (so investors are not paying sales commissions or marketing expenses);  Low expense ratios, typically below 1%. 2
  4. 4. Copyright © 2018, Finstead. All rights reserved. Top Mutual Funds Selection Methodology  In this presentation we are offering some vetted ideas for investing in mutual funds across the different segments:  U.S. and International Equity;  Specialty (Technology and Healthcare);  Fixed Income (Taxable and Tax Exempt);  Balanced (Stock/Bond Mutual Funds).  Here are our search criteria for the best mutual funds:  Popular among investors, demonstrated by assets under management north of $1 Billion;  Above-average returns (in their respective segments);  No sales loads or 12b-1 fees (so investors are not paying sales commissions or marketing expenses);  Low expense ratios, typically below 1%. 2
  5. 5. Copyright © 2018, Finstead. All rights reserved. Topics 1. Introduction: Our Selection Methodology 2. Top Large-Cap Mutual Funds 3. Top International Mutual Funds 4. Top Specialty and Sector Mutual Funds 5. Top Taxable Fixed Income Mutual Funds 6. Top Tax-Exempt Fixed Income Mutual Funds 7. Top Balanced Mutual Funds 5
  6. 6. Copyright © 2018, Finstead. All rights reserved. #1 Vanguard 500 Index Admiral (VFIAX)  Vanguard 500 Index Admiral (VFIAX) is the most popular fund by assets. It tracks the performance of the S&P 500 benchmark index. VFINX invests all of its assets in the stocks that make up S&P 500 with the same approximate weightings as the Index (this is a passive fund).  VFIAX expense ratio is 0.04%, and its minimum investment requirement is $10K.  Here is what VFIAX returned over the different time frames:  1-month return is 2.33%;  3-month return is 4.76%;  1-year return is 23.59%;  3-year annualized return is 10.74%;  5-year annualized return is 15.14%. 2
  7. 7. Copyright © 2018, Finstead. All rights reserved. #1 VFIAX Performance 7
  8. 8. Copyright © 2018, Finstead. All rights reserved. #2 Vanguard 500 Index Investor (VFINX) 8  Vanguard 500 Index Investor (VFINX) is very similar to VFIAX (see mutual fund #1)—it tracks S&P 500 as well. The main difference is, VFINX requires a minimum $3K investment, and its expense ratio is 0.14%.  VFINX returns are slightly lower than those of VFIAX, but the differences are almost negligible:  1-month return is 2.32%;  3-month return is 4.73%;  1-year return is 23.46%;  3-year annualized return is 10.63%;  5-year annualized return is 15.01%.
  9. 9. Copyright © 2018, Finstead. All rights reserved. #2 VFINX Performance 9
  10. 10. Copyright © 2018, Finstead. All rights reserved. #3 Vanguard Institutional Index Fund Institutional Shares (VINIX)  Vanguard Institutional Index Fund Institutional Shares (VINIX) also tracks S&P 500, but its minimum investment requirement is $5.0 Million, and its expense ratio is 0.035%.  You may have access to VINIX even if you don’t satisfy the minimum investment requirement—check out with your advisor or 401K plan administrator. The benefit of using VINIX over VFINX and VFIAX is a lower expense ratio.  There is also an Institutional Plus version of the fund (VIIIX), which expense ratio is 0.02% and its minimum investment requirement is $100.0 Million. 10
  11. 11. Copyright © 2018, Finstead. All rights reserved. #3 VINIX Performance 11
  12. 12. Copyright © 2018, Finstead. All rights reserved. #4 Vanguard Total Stock Market Index Fund Admiral Shares (VTSAX)  Vanguard Total Stock Market Index Fund Admiral Shares (VTSAX) tracks the performance of a benchmark index that measures the investment return of the overall stock market. VTSAX employs a "passive management" approach designed to track the performance of the CRSP US Total Market Index.  VTSAX historical returns have been as follows:  1-month return is 3.04%;  3-month return is 7.87%;  1-year return is 22.28%;  3-year annualized return is 10.71%;  5-year annualized return is 15.60%.  VTSAX expense ratio is 0.04%, and its minimum requirement investment is $10K.  Unlike VFIAX/VFINX which cover roughly top 500 US stocks by market cap, VTSAX number of holdings is over 3,500. 12
  13. 13. Copyright © 2018, Finstead. All rights reserved. #4 VTSAX Performance 13
  14. 14. Copyright © 2018, Finstead. All rights reserved. #5 Vanguard Total Stock Market Index Fund Investor Shares (VTSMX)  Vanguard Total Stock Market Index Fund Investor Shares (VTSMX) also employs a "passive management" approach designed to track the performance of the CRSP US Total Market Index, just like VTSAX.  The key difference is, VTSMX minimum investment requirement is $3K (vs. $10 for VTSAX), and its expense ratio is 0.15%.  VTSMX historical returns have been as follows:  1-month return is 3.04%;  3-month return is 7.85%;  1-year return is 22.16%;  3-year annualized return is 10.59%;  5-year annualized return is 15.47%. 14
  15. 15. Copyright © 2018, Finstead. All rights reserved. #5 VTSMX Performance 15
  16. 16. Copyright © 2018, Finstead. All rights reserved. #6 Vanguard Total Stock Market Index Fund Institutional Plus Shares (VSMPX)  Vanguard Total Stock Market Index Fund Institutional Plus Shares (VSMPX) also tracks CRSP US Total Market Index, just like VTSMX and VTSAX.  There are to versions of the fund: institutional, with the minimum investment requirement of $5.0 Million and the expense ratio of 0.035%.  The Institutional Plus version has the minimum investment requirement of $100.0 Million and the expense ratio of 0.02%.  You may have access to VSMPX even if you don’t satisfy the minimum investment requirement—check out with your advisor or 401K plan administrator. The benefit of using VSMPX over VTSMX and VTSAX is a lower expense ratio. 16
  17. 17. Copyright © 2018, Finstead. All rights reserved. #6 VSMPX Performance 17
  18. 18. Copyright © 2018, Finstead. All rights reserved. #7 Vanguard Total International Stock Index Fund Investor Shares (VGTSX)  Vanguard Total International Stock Index Fund Investor Shares (VGTSX) tracks the performance of the FTSE Global All Cap ex US Index, a free-float-adjusted market capitalization weighted index designed to measure equity market performance of companies located in developed and emerging markets, excluding the United States.  VGTSX expense ratio is 0.18%, and its minimum investment requirement is $10K.  VGTSX has generated the following historical returns:  1-month return is 0.78%;  3-month return is 4.59%;  1-year return is 27.40%;  3-year annualized return is 6.39%;  5-year annualized return is 7.48%. 18
  19. 19. Copyright © 2018, Finstead. All rights reserved. #7 VGTSX Performance 19
  20. 20. Copyright © 2018, Finstead. All rights reserved. #8 Vanguard Total International Stock Index Fund Admiral Shares (VTIAX)  Vanguard Total International Stock Index Fund Admiral Shares (VTIAX) tracks the performance of the FTSE Global All Cap ex US Index. It’s an Admirals version of the VGTSX fund.  VTIAX minimum initial investment is $10K.  VTIAX expense ratio is 0.11%. 20
  21. 21. Copyright © 2018, Finstead. All rights reserved. #8 VTIAX Performance 21
  22. 22. Copyright © 2018, Finstead. All rights reserved. #9 Fidelity Contrafund Fund (FCNTX)  Fidelity Contra fund Fund (FCNTX) seeks capital appreciation. This is an active fund.  The Fund invests in securities of companies that are undervalued, according to the Fund managers. The Fund normally invests primarily in common stocks and may invest in both domestic and foreign issuers.  FCNTX minimum initial investment is $2,500, while its expense ratio is 0.68%. FCNTX number of holdings is 307.  Here are the historical returns FCNTX generated:  1-month return is 1.59%;  3-month return is 7.30%;  1-year return is 32.52%;  3-year annualized return is 13.00%;  5-year annualized return is 16.39%. 22
  23. 23. Copyright © 2018, Finstead. All rights reserved. #9 FCNTX Performance 23
  24. 24. Copyright © 2018, Finstead. All rights reserved. Topics 1. Introduction: Our Selection Methodology 2. Top Large-Cap Mutual Funds 3. Top International Mutual Funds 4. Top Specialty and Sector Mutual Funds 5. Top Taxable Fixed Income Mutual Funds 6. Top Tax-Exempt Fixed Income Mutual Funds 7. Top Balanced Mutual Funds 24
  25. 25. Copyright © 2018, Finstead. All rights reserved. #10 Vanguard Total International Stock Index Fund Institutional Plus Shares (VTPSX)  Vanguard Total International Stock Index Fund Institutional Plus Shares (VTPSX) tracks the performance of the FTSE Global All Cap ex US Index, a market cap weighted index designed to measure the performance of companies located in developed and emerging markets, excluding the United States.  This is a sister fund to VGTSX; however, its minimum initial investment is $100,000,000.  VTPSX expense ratio is 0.07%, and the number of holdings is 5,922.  You may have access to VTPSX via your investment advisor / 401K plan administrator.  VTPSX historical returns are as follows:  1-month return is 0.79%;  3-month return is 4.59%;  1-year return is 27.54%;  3-year annualized return is 6.50%;  5-year annualized return is 7.60%. 25
  26. 26. Copyright © 2018, Finstead. All rights reserved. #10 VTPSX Performance 26
  27. 27. Copyright © 2018, Finstead. All rights reserved. #11 Vanguard Total International Stock Index Fund Admiral Shares (VTIAX)  Vanguard Total International Stock Index Fund Admiral Shares (VTIAX) tracks the performance of the FTSE Global All Cap ex US Index, just like VGTSX and VTPSX.  This is an Admirals share version of the fund, with the minimum initial investment of $10K; higher than that of VGTSX ($3K), but way lower than that of VTPSX.  VTIAX expense ratio is 0.11%. 27
  28. 28. Copyright © 2018, Finstead. All rights reserved. #11 VTIAX Performance 28
  29. 29. Copyright © 2018, Finstead. All rights reserved. #12 Dodge & Cox International Stock Fund (DODFX)  Dodge & Cox International Stock Fund (DODFX) seeks long-term growth of principal and income by investing primarily in a diversified portfolio of equities issued by non-U.S. companies from at least three different foreign countries, including emerging markets.  DODFX expense ratio is 0.64%. While we normally wouldn’t recommend funds that are as expensive as this one, DODFX historical performance, adjusted for expenses and risk, has been on par with, or better than the index international mutual funds (such as VGTSX).  DODFX historical returns are as follows:  1-month return is -0.54%;  3-month return is 2.57%;  1-year return is 24.45%;  3-year annualized return is 3.56%;  5-year annualized return is 9.26%. 29
  30. 30. Copyright © 2018, Finstead. All rights reserved. #12 DODFX Performance 30
  31. 31. Copyright © 2018, Finstead. All rights reserved. #13 Oakmark International Fund Investor Class (OAKIX)  Oak mark International Fund Investor Class (OAKIX) invests in a diversified portfolio of international securities which are priced below their ‘long-term value’. There are no geographic limits on the Fund's non-U.S. investments.  OAKIX expense ratio is 1%, which on the high side, but it’s justified by a superior risk- adjusted return.  OAKIX financial performance is as follows:  1-month return is -0.52%;  3-month return is 4.94%;  1-year return is 31.60%;  3-year annualized return is 8.76%;  5-year annualized return is 11.43%. 31
  32. 32. Copyright © 2018, Finstead. All rights reserved. #13 OAKIX Performance 32
  33. 33. Copyright © 2018, Finstead. All rights reserved. #14 Vanguard International Growth Fund Admiral Shares (VWILX)  Vanguard International Growth Fund Admiral Shares (VWILX) invests in major equity markets outside the United States. The fund’s managers employ fundamental research to construct portfolios of growth stocks in developed and emerging markets. This is an active fund.  The fund managers use fundamental research to identify high-quality companies with above- average growth potential in countries around the world. There are two managers overseeing independent sub portfolios—which increases diversification.  VWILX minimum initial investment is $50,000, while its expense ratio is 0.32%.  VWILX performance is as follows:  1-month return is 0.97%;  3-month return is 4.13%;  1-year return is 43.16%;  3-year annualized return is 13.19%;  5-year annualized return is 11.02% 33
  34. 34. Copyright © 2018, Finstead. All rights reserved. #14 VWILX Performance 34
  35. 35. Copyright © 2018, Finstead. All rights reserved. #15 MJFOX Matthews Japan Fund Investor Class  Matthews Japan Fund Investor Class (MJFOX) seeks long-term capital appreciation through investment in the stocks of Japanese companies.  The minimum initial investment in the Fund is $2,500.  MJFOX expense ratio is 0.98%; however, its returns have been outstanding in the past 5-10 years:  1-month return is 3.44%;  3-month return is 9.96%;  1-year return is 30.75%;  3-year annualized return is 16.17%;  5-year annualized return is 16.56%.  You should take a further look into this fund if you’re looking to gain exposure to the Japanese market. 35
  36. 36. Copyright © 2018, Finstead. All rights reserved. #15 MJFOX Performance 36
  37. 37. Copyright © 2018, Finstead. All rights reserved. #16 Vanguard International Explorer Fund Investor Shares (VINEX)  Vanguard International Explorer Fund Investor Shares (VINEX) seeks long-term capital appreciation by investing primarily in the equity securities of smaller international companies (which generally have market capitalizations of $2.5 billion or less at the time of investment).  VINEX is an active fund with the expense ratio is 0.41% and a minimum initial investment of $3,000.  VINEX historical returns are as follows:  1-month return is 0.46%;  3-month return is 6.34%;  1-year return is 36.59%;  3-year annualized return is 12.57%;  5-year annualized return is 13.47%. 37
  38. 38. Copyright © 2018, Finstead. All rights reserved. #16 VINEX Performance 38
  39. 39. Copyright © 2018, Finstead. All rights reserved. Topics 1. Introduction: Our Selection Methodology 2. Top Large-Cap Mutual Funds 3. Top International Mutual Funds 4. Top Specialty and Sector Mutual Funds 5. Top Taxable Fixed Income Mutual Funds 6. Top Tax-Exempt Fixed Income Mutual Funds 7. Top Balanced Mutual Funds 39
  40. 40. Copyright © 2018, Finstead. All rights reserved. #17 Fidelity Select Semiconductors Portfolio (FSELX)  Fidelity Select Semiconductors Portfolio (FSELX) primarily in companies engaged in the design, manufacture, or sale of electronic components (semiconductors, connectors, printed circuit boards and other components), equipment vendors, component distributors and vendors of instruments and electronic systems. This is an active fund.  FSELX performance is as follows:  1-month return is 4.15%;  3-month return is 17.83%;  1-year return is 40.54%;  3-year annualized return is 24.50%;  5-year annualized return is 30.01%.  FSELX expense ratio is 0.77%, while its minimum initial investment is $2,500. 40
  41. 41. Copyright © 2018, Finstead. All rights reserved. #17 FSELX Performance 41
  42. 42. Copyright © 2018, Finstead. All rights reserved. #18 T. Rowe Price Global Technology Fund (PRGTX)  T. Rowe Price Global Technology Fund (PRGTX) provides long-term capital growth by investing at least 65% of total assets in the common stocks of technology companies around the world. This is an active fund.  PRGTX performance is as follows:  1-month return is 0.56%;  3-month return is 7.11%;  1-year return is 45.90%;  3-year annualized return is 22.77%;  5-year annualized return is 27.37%.  PRGTX expense ratio is 0.9%. Its minimum initial investment is $2,500. 42
  43. 43. Copyright © 2018, Finstead. All rights reserved. #18 PRGTX Performance 43
  44. 44. Copyright © 2018, Finstead. All rights reserved. #19 T. Rowe Price Science and Technology Fund (PRSCX)  T. Rowe Price Science and Technology Fund (PRSCX) seeks long-term capital appreciation by investing at least 80% of net assets in the common stocks of technology companies. This is an active fund.  PRSCX performance is as follows:  1-month return is 3.90%;  3-month return is 9.18%;  1-year return is 37.83%;  3-year annualized return is 18.25%;  5-year annualized return is 23.06%.  PRSCX expense ratio is 0.83%. PRSCX minimum initial investment is $2,500. 44
  45. 45. Copyright © 2018, Finstead. All rights reserved. #19 PRSCX Performance 45
  46. 46. Copyright © 2018, Finstead. All rights reserved. #20 Fidelity Select Software and IT Services Portfolio (FSCSX)  Fidelity Select Software and IT Services Portfolio (FSCSX) invests at least 80% of the assets in securities of companies engaged in software or information-based services. This is an active fund.  FSCSX expense ratio is 0.76%. The minimum investment requirement is $2,500.  Its performance is as follows:  1-month return is 1.11%;  3-month return is 8.88%;  1-year return is 37.05%;  3-year annualized return is 19.02%;  5-year annualized return is 22.72%. 46
  47. 47. Copyright © 2018, Finstead. All rights reserved. #20 FSCSX Performance 47
  48. 48. Copyright © 2018, Finstead. All rights reserved. #21 Fidelity Select Medical Technology and Devices Portfolio (FSMEX)  Fidelity Select Medical Technology and Devices Portfolio (FSMEX) normally invests at least 80% of the assets in securities of companies principally engaged in medical equipment and devices. This is an active fund.  FSMEX performance is as follows:  1-month return is 2.94%;  3-month return is 3.74%;  1-year return is 33.11%;  3-year annualized return is 15.70%;  5-year annualized return is 22.25%.  FSMEX expense ratio is 0.76%. Its minimum investment requirement is $2,500. 48
  49. 49. Copyright © 2018, Finstead. All rights reserved. #21 FSMEX Performance 49
  50. 50. Copyright © 2018, Finstead. All rights reserved. #22 Fidelity Select IT Services Portfolio (FBSOX)  Fidelity Select IT Services Portfolio (FBSOX) invests at least 80% of assets in securities of companies principally engaged in providing information technology services. The fund invests in domestic and foreign issuers and uses fundamental analysis of factors such as each issuer's financial condition and industry position, as well as market and economic conditions, to select investments. The fund’s management style is active.  FBSOX historical returns are as follows:  1-month return is 2.72%;  3-month return is 10.55%;  1-year return is 34.68%;  3-year annualized return is 17.12%;  5-year annualized return is 21.18%.  FBSOX expense ratio 0.79%, and the minimum investment requirement is $2,500. 50
  51. 51. Copyright © 2018, Finstead. All rights reserved. #22 FBSOX Performance 51
  52. 52. Copyright © 2018, Finstead. All rights reserved. #23 Fidelity Select Technology Portfolio Report (FSPTX)  Fidelity Select Technology Portfolio Report (FSPTX) invests at least 80% of assets in securities of technology companies. The fund invests in domestic and foreign issuers. It uses fundamental analysis of factors such as each issuer's financial condition and industry position, as well as market and economic conditions, to select investments. The fund is active.  FSPTX performance is as follows:  1-month return is 0.45%;  3-month return is 8.56%;  1-year return is 52.78%;  3-year annualized return is 21.62%;  5-year annualized return is 21.71%.  FSPTX minimum initial investment is $2,500. FSPTX expense ratio is 0.77%. 52
  53. 53. Copyright © 2018, Finstead. All rights reserved. #23 FSPTX Performance 53
  54. 54. Copyright © 2018, Finstead. All rights reserved. #24 USAA NASDAQ-100 Index Fund (USNQX)  USAA NASDAQ-100 Index Fund (USNQX) investment seeks to match, before fees and expenses, the performance of the stocks composing the Nasdaq-100 Index. The fund's principal investment strategy is, under normal market conditions, to invest at least 80% of the fund's assets in the common stocks of companies composing the Nasdaq-100 Index. The Nasdaq-100 Index represents 100 of the largest nonfinancial stocks traded on the Nasdaq Stock Exchange.  USNQX management style is passive. Its expense ratio is 0.53%, while the minimum investment requirement is $3,000.  USNQX performance is as follows:  1-month return is 2.02%;  3-month return is 6.45%;  1-year return is 33.11%;  3-year annualized return is 14.38%;  5-year annualized return is 19.72%. 54
  55. 55. Copyright © 2018, Finstead. All rights reserved. #24 USNQX Performance 55
  56. 56. Copyright © 2018, Finstead. All rights reserved. #25 Fidelity Select Biotechnology Portfolio (FBIOX)  Fidelity Select Biotechnology Portfolio (FBIOX) invests at least 80% of assets in securities of biotechnology companies. The fund invests in domestic and foreign issuers. It uses fundamental analysis of factors such as each issuer's financial condition and industry position, as well as market and economic conditions to select investments.  FBIOX expense ratio 0.75%, while the minimum investment requirement is $2,500.  FBIOX performance is as follows:  1-month return is 0.09%;  3-month return is -3.95%;  1-year return is 18.94%;  3-year annualized return is 3.77%;  5-year annualized return is 19.40%. 56
  57. 57. Copyright © 2018, Finstead. All rights reserved. #25 FBIOX Performance 57
  58. 58. Copyright © 2018, Finstead. All rights reserved. #26 T. Rowe Price Health Sciences Fund (PRHSX)  T. Rowe Price Health Sciences Fund (PRHSX) invests at least 80% of its net assets (including any borrowings for investment purposes) in the common stocks of health sciences companies (health care, medicine, or the life sciences). While the fund can invest in companies of any size, the majority of fund assets are expected to be invested in large- and mid-capitalization companies. This is an active fund.  PRHSX expense ratio 0.77%, while the minimum investment requirement is $2,500.  PRHSX performance has been as follows:  1-month return is 2.75%;  3-month return is 3.37%;  1-year return is 26.00%;  3-year annualized return is 9.45%;  5-year annualized return is 21.22%. 58
  59. 59. Copyright © 2018, Finstead. All rights reserved. #26 PRHSX Performance 59
  60. 60. Copyright © 2018, Finstead. All rights reserved. #27 Fidelity Advisor Biotechnology Fund I Class (FBTIX)  Fidelity Advisor Biotechnology Fund I Class (FBTIX) invests at least 80% of assets in securities of biotechnology companies. The fund invests in domestic and foreign issuers. It uses fundamental analysis of factors such as each issuer's financial condition and industry position, as well as market and economic conditions, to select investments.  FBTIX performance is as follows:  1-month return is 0.15%;  3-month return is -4.44%;  1-year return is 17.61%;  3-year annualized return is 2.50%;  5-year annualized return is 18.33%.  FBTIX minimum initial investment is $2,500, and its expense ratio is 0.78%. 60
  61. 61. Copyright © 2018, Finstead. All rights reserved. #27 FBTIX Performance 61
  62. 62. Copyright © 2018, Finstead. All rights reserved. #28 Fidelity Select Medical Technology and Devices Portfolio (FSMEX)  Fidelity Select Medical Technology and Devices Portfolio (FSMEX) invests at least 80% of assets in securities of medical equipment and devices companies. The fund invests in domestic and foreign issuers. It uses fundamental analysis of factors such as each issuer's financial condition and industry position, as well as market and economic conditions to select investments.  FSMEX performance is as follows”  1-month return is 2.94%;  3-month return is 3.74%;  1-year return is 33.11%;  3-year annualized return is 15.70%;  5-year annualized return is 22.25%.  FSMEX expense ratio is 0.76%, while its minimum initial investment requirement is $2,500. 62
  63. 63. Copyright © 2018, Finstead. All rights reserved. #28 FSMEX Performance 63
  64. 64. Copyright © 2018, Finstead. All rights reserved. Topics 1. Introduction: Our Selection Methodology 2. Top Large-Cap Mutual Funds 3. Top International Mutual Funds 4. Top Specialty and Sector Mutual Funds 5. Top Taxable Fixed Income Mutual Funds 6. Top Tax-Exempt Fixed Income Mutual Funds 7. Top Balanced Mutual Funds 64
  65. 65. Copyright © 2018, Finstead. All rights reserved. #29 Vanguard Total Bond Market Index Fund Admiral Shares (VBTLX)  Vanguard Total Bond Market Index Fund Admiral Shares (VBTLX) tracks Bloomberg Barclays U.S. Aggregate Float Adjusted Index, which reflects a wide spectrum of public, investment-grade, taxable, fixed income securities in the United States. That includes government, corporate, and international dollar- denominated bonds, as well as mortgage-backed and asset-backed securities, all with maturities of more than 1 year.  This is a broad-base fixed income ETF, passive by management style.  VBTLX expense ratio is 0.05%, while VBTLX minimum initial investment is $10,000 (typical of Vanguard Admiral Shares funds).  VBTLX performance is the following:  1-month return is -0.16%;  3-month return is -0.57%;  1-year return is 3.36%;  3-year annualized return is 2.06%;  5-year annualized return is 1.89%. 65
  66. 66. Copyright © 2018, Finstead. All rights reserved. #29 VBTLX Performance 66
  67. 67. Copyright © 2018, Finstead. All rights reserved. #30 Vanguard Total Bond Market II Index Fund Investor Shares (VTBIX)  Vanguard Total Bond Market II Index Fund Investor Shares (VTBIX) tracks the performance of the Barclays Capital U.S. Aggregate Bond Index, and will maintain a dollar- weighted average maturity consistent with that of the index. The Index measures investment-grade, taxable fixed income securities in the U.S.  VTBIX expense ratio 0.09%, while its minimum initial investment requirement is $0.  VTBIX has generated the following returns:  1-month return is 0.52%;  3-month return is 0.36%;  1-year return is 3.54%;  3-year annualized return is 2.11%;  5-year annualized return is 1.97%. 67
  68. 68. Copyright © 2018, Finstead. All rights reserved. #30 VTBIX Performance 68
  69. 69. Copyright © 2018, Finstead. All rights reserved. #31 PIMCO Total Return Fund Institutional Class (PTTRX)  PIMCO Total Return Fund Institutional Class (PTTRX) invests at least 65% of its total assets in a diversified portfolio of fixed income instruments of varying maturities, which may be represented by forwards or derivatives such as options, futures contracts, or swap agreements.  It invests primarily in investment-grade debt securities but may invest up to 20% of its total assets in high yield securities. It may invest up to 30% of its total assets in securities denominated in foreign currencies and may invest beyond this limit in U.S. dollar-denominated securities of foreign issuers.  PTTRX expense ratio 0.47%, while its minimum initial investment requirement is $25,000.  PTTRX performance is as follows:  1-month return is -0.29%;  3-month return is -0.75%;  1-year return is 5.20%;  3-year annualized return is 2.44%;  5-year annualized return is 2.14%. 69
  70. 70. Copyright © 2018, Finstead. All rights reserved. #31 PTTRX Performance 70
  71. 71. Copyright © 2018, Finstead. All rights reserved. #32 Dodge & Cox Income Fund (DODIX)  Dodge & Cox Income Fund (DODIX) is a bond fund that seeks a high and stable rate of current income. The fund invests in a diversified portfolio of bonds and other debt securities. Under normal circumstances, the fund will invest at least 80% of its total assets in (1) investment- grade debt securities and (2) cash equivalents.  ‘Investment grade’ means securities rated Baa3 or higher by Moody's Investors Service, or BBB- or higher by Standard & Poor's.  DODIX expense ratio is 0.43%, and its minimum investment requirement is $2,500.  DODIX performance has been the following:  1-month return is -0.07%;  3-month return is 0.11%;  1-year return is 4.53%;  3-year annualized return is 2.86%;  5-year annualized return is 3.02%. 71
  72. 72. Copyright © 2018, Finstead. All rights reserved. #32 DODIX Performance 72
  73. 73. Copyright © 2018, Finstead. All rights reserved. #33 Double Line Total Return Bond Fund Class I (DBLTX)  Double Line Total Return Bond Fund Class I (DBLTX) invests at least 80% of its net assets in bonds, including debt securities and other fixed-income instruments issued by various governmental or private- sector entities.  DBLTX falls in the intermediate-term bond category. Intermediate-term bonds are those with maturities in the three- to 10-year range. This fund focuses heavily on bonds that are backed by mortgages which can enhance return, but also increase risk.  The top holding of DBLTX is US Treasury Note 1.625%.  DBLTX expense ratio is 0.47%, and its minimum investment requirement is $100,000.  DBLTX returns are as follows:  1-month return is 0.28%;  3-month return is 0.23%;  1-year return is 3.79%;  3-year annualized return is 2.76%;  5-year annualized return is 2.98%. 73
  74. 74. Copyright © 2018, Finstead. All rights reserved. #33 DBLTX Performance 74
  75. 75. Copyright © 2018, Finstead. All rights reserved. #34 PIMCO Income Fund Institutional Class (PIMIX)  PIMCO Income Fund Institutional Class (PIMIX) is a bond fund that seeks to maximize current income. PIMIX typically invests minimum 65% of its total assets in a multi-sector portfolio of fixed income instruments of varying maturities. The Fund will generally allocate its assets among several investment sectors.  PIMIX holdings are U.S. government obligations, foreign bonds, and high-yield domestic debt securities. The duration of holdings is between zero and eight years.  DODIX expense ratio is 0.45%, and its minimum investment requirement is $25,000.  PIMIX has generated the following returns:  1-month return is 0.29%;  3-month return is 1.10%;  1-year return is 8.60%;  3-year annualized return is 6.61%;  5-year annualized return is 6.36%. 75
  76. 76. Copyright © 2018, Finstead. All rights reserved. #34 PIMIX Performance 76
  77. 77. Copyright © 2018, Finstead. All rights reserved. Topics 1. Introduction: Our Selection Methodology 2. Top Large-Cap Mutual Funds 3. Top International Mutual Funds 4. Top Specialty and Sector Mutual Funds 5. Top Taxable Fixed Income Mutual Funds 6. Top Tax-Exempt Fixed Income Mutual Funds 7. Top Balanced Mutual Funds 77
  78. 78. Copyright © 2018, Finstead. All rights reserved. #35 Vanguard Intermediate-Term Tax- Exempt Fund Admiral Shares (VWIUX)  Vanguard Intermediate-Term Tax-Exempt Fund Admiral Shares (VWIUX) invests in municipal debt issues with average maturities of 7 to 12 years.  VWIUX expense ratio is 0.09%, and its minimum investment is $50K.  VWIUX has generated the following returns:  1-month return is 0.89%;  3-month return is 0.29%;  1-year return is 4.65%;  3-year annualized return is 2.57%;  5-year annualized return is 2.68%. 78
  79. 79. Copyright © 2018, Finstead. All rights reserved. #35 VWIUX Performance 79
  80. 80. Copyright © 2018, Finstead. All rights reserved. #36 Vanguard Limited-Term Tax-Exempt Fund Admiral Shares (VMLUX)  Vanguard Limited-Term Tax-Exempt Fund Admiral Shares (VMLUX) seeks to provide investors with a high level of current income exempt from Federal income taxes primarily through investment in high-quality municipal securities with an average maturity of 2 to 5 years.  VMLUX expense ratio is 0.09%, and the minimum investment is $50K.  VMLUX has generated the following returns:  1-month return is 0.34%;  3-month return is -0.48%;  1-year return is 2.12%;  3-year annualized return is 1.15%;  5-year annualized return is 1.18%. 80
  81. 81. Copyright © 2018, Finstead. All rights reserved. #36 VMLUX Performance 81
  82. 82. Copyright © 2018, Finstead. All rights reserved. #37 Vanguard Short-Term Tax-Exempt Fund Class Admiral (VWSUX)  Vanguard Short-Term Tax-Exempt Fund Class Admiral (VWSUX) provides investors with a high level of current income exempt from Federal income taxes primarily through investment in high-quality municipal securities, with a maturity of 1 to 2 years.  VWSUX expense ratio is 0.09%, and the minimum investment is $50K.  VWSUX has generated the following returns:  1-month return is 0.12%;  3-month return is -0.25%;  1-year return is 1.10%;  3-year annualized return is 0.70%;  5-year annualized return is 0.67%. 82
  83. 83. Copyright © 2018, Finstead. All rights reserved. #37 VWSUX Performance 83
  84. 84. Copyright © 2018, Finstead. All rights reserved. Topics 1. Introduction: Our Selection Methodology 2. Top Large-Cap Mutual Funds 3. Top International Mutual Funds 4. Top Specialty and Sector Mutual Funds 5. Top Taxable Fixed Income Mutual Funds 6. Top Tax-Exempt Fixed Income Mutual Funds 7. Top Balanced Mutual Funds 84
  85. 85. Copyright © 2018, Finstead. All rights reserved. #38 Vanguard Wellington Fund Admirals Shares (VWENX)  Vanguard Wellington Fund Admirals Shares (VWENX) seeks conservation of principal, reasonable income and capital appreciation without undue risk, by investing 60% to 70% of its assets in common stocks and 30% to 40% in bonds.  VWENX expense ratio is 0.16%, while its minimum investment amount is $50K.  VWENX returns are as follows:  1-month return is 1.83%;  3-month return is 5.34%;  1-year return is 15.81%;  3-year annualized return is 7.96%;  5-year annualized return is 10.84%. 85
  86. 86. Copyright © 2018, Finstead. All rights reserved. #38 VWENX Performance 86
  87. 87. Copyright © 2018, Finstead. All rights reserved. #39 T. Rowe Price Capital Appreciation Fund (PRWCX)  T. Rowe Price Capital Appreciation Fund (PRWCX) seeks long-term capital appreciation by investing primarily in the common stocks of established U.S. companies. Common stocks typically constitute at least half of total assets. The remaining assets are invested in other securities, including convertible securities, corporate and government debt.  PRWCX expense ratio is 0.16%; there is no minimum investment requirement.  PRWCX returns are as follows:  1-month return is 0.06%;  3-month return is 2.95%;  1-year return is 15.38%;  3-year annualized return is 9.59%;  5-year annualized return is 12.59%. 87
  88. 88. Copyright © 2018, Finstead. All rights reserved. #39 PRWCX Performance 88
  89. 89. Copyright © 2018, Finstead. All rights reserved. #40 Fidelity Balanced Fund (FBALX)  Fidelity Balanced Fund (FBALX) seeks income and capital growth by investing 60% of its assets in stocks and other equity securities and the remainder in bonds and other debt securities, including lower-quality debt securities, when its outlook is neutral. It invests at least 25% in fixed-income senior securities. This is an active fund.  FBALX expense ratio is 0.55%; its minimum investment requirement is $2,500.  FBALX returns are as follows:  1-month return is 0.64%;  3-month return is 3.60%;  1-year return is 16.50%;  3-year annualized return is 7.77%;  5-year annualized return is 10.73%. 89
  90. 90. Copyright © 2018, Finstead. All rights reserved. #40 FBALX Performance 90

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