Read and review commentaries written by Morningstar experts. These observations and insights are specific to Mutual Funds.
The Promise and Peril of Multi-Asset Income
Don’t let the solution for more income be worse than the problem.
by Megan Pacholok | 2020-11-25 05:00:00
A tough decade for income-seeking investors has only gotten more challenging in 2020. At the end of October, the yield on the Bloomberg Barclays U.S. Aggregate Bond Index was 1.25%, nearly a full percentage point lower than it was a year ago. Yields have fallen as the Fed slashed rates to near zero and investors piled into safe havens amidst heightened uncertainty stemming from the coronavirus pandemic.Given the scarcity of income from high-quality bonds, investors may understandably cast a wandering eye toward the seeming oasis offered by multi-asset income funds. These allocation funds combine multiple income-producing asset classes, like dividend-paying stocks, REITs, high-yield bonds, and emerging-markets debt, to generate above-average income.Most multi-asset income funds reside in the allocation -- 30% to 50% equity Morningsta… Full Story
Gold Is a Dull Investment
Gold may offer some insurance against a market meltdown, but there is a cost to own it.
by Alex Bryan, CFA | 2020-11-24 05:00:00
A version of this article previously appeared in the October issue ofMorningstar ETFInvestor. Click here to download a complementary copy.I’ve never been a big fan of gold. It’s not a productive asset, so it doesn’t generate any cash flows, and it’s only worth what someone else is willing to pay for it. Yet there’s evidence that gold can serve as a hedge against a market meltdown and inflation, so it may serve a purpose as a small position in a diversiÂfied portfolio. The opportunity cost of holding gold is currently low, as real interest rates are negative.Yet insurance doesn’t boost expected returns. Rather, it tends to reduce them. There is no compelling economic reason to expect gold to provide strong real (inflation-adjusted) returns over the long term. Gold is far from a perfect hedge against inf… Full Story
Carefully consider the investment objectives, risks, charges and expenses before investing. A prospectus, obtained by calling 800-669-3900, contains this and other important information about an investment company. Read carefully before investing.
A mutual fund is not FDIC-insured, may lose value, and is not guaranteed by a bank or other financial institution.
Performance quoted represents past performance, is no guarantee of future results, and may not provide an adequate basis for evaluating the performance of the product over varying market conditions or economic cycles. Current performance may be lower or higher than the performance data quoted. The investment return and principal value of an investment will fluctuate so that an investor's shares, when redeemed, may be worth more or less than their original cost.
TD Ameritrade receives remuneration from mutual fund companies, including those participating in its no-load, no-transaction-fee program, for recordkeeping, shareholder services, and other administrative and distribution services. The amount of TD Ameritrade's remuneration for these services is based in part on the amount of investments in such funds by TD Ameritrade clients. PLEASE ALSO SEE IMPORTANT ADDITIONAL FUND FEE DISCLOSURE INFORMATION
No-transaction-fee funds and other funds offered through TD Ameritrade have other fees and expenses that apply to a continued investment in the fund and are described in the prospectus.
Mutual funds, closed-end funds and exchange-traded funds are subject to market, exchange rate, political, credit, interest rate, and prepayment risks, which vary depending on the type of fund. International investments involve special risks, including currency fluctuations and political and economic instability. Asset allocation and diversification do not eliminate the risk of experiencing investment losses. Fund purchases may be subject to investment minimums, eligibility and other restrictions, as well as charges and expenses.
1You could lose money by investing in a money market fund.Although the fund seeks to preserve the value of your investment at $1 per share, it cannot guarantee it will do so.The fund may impose a fee upon the sale of your shares or may temporarily suspend your ability to sell shares if the fund's liquidity falls below required minimums because of market conditions or other factors. An investment in the fund is not insured or guaranteed by the FDIC or any other government agency. The fund's sponsor has no legal obligation to provide financial support to the fund, and you should not expect that the sponsor will provide financial support to the fund at any time.
2You could lose money by investing in a money market fund. Although the fund seeks to preserve the value of your investment at $1 per share, it cannot guarantee it will do so. An investment in the fund is not insured or guaranteed by the FDIC or any other government agency. The fund’s sponsor has no legal obligation to provide financial support to the fund, and you should not expect that the sponsor will provide financial support to the fund at any time.
3You could lose money by investing in a money market fund. Because the share price of the fund will fluctuate, when you sell your shares they may be worth more or less than what you originally paid for them. The fund may impose a fee upon the sale of your shares or may temporarily suspend your ability to sell shares if the fund's liquidity falls below required minimums because of market conditions or other factors. An investment in the fund is not insured or guaranteed by the FDIC or any other government agency. The fund's sponsor has no legal obligation to provide financial support to the fund, and you should not expect that the sponsor will provide financial support to the fund at any time.
Some mutual funds sold through TD Ameritrade impose a charge on the purchase of shares, called a “sales load.” An investor may be able to purchase fund shares through TD Ameritrade without paying a front-end sales load, but an investor may be charged a fee, called a “contingent deferred sales charge,” when the investor sells or redeems shares. TD Ameritrade may receive part or all of the sales load.
Some mutual funds offer reductions in front-end sales loads (“breakpoints”) for purchases over certain amounts or purchases through Letters of Intent or Rights of Accumulation. Some funds also offer waivers of those loads, often to retirement plans or charities. Such breakpoints or waivers will be as further described in the prospectus. You, as the investor, should determine and obtain any breakpoints or waivers or provide TD Ameritrade with sufficient information to assist it in obtaining them.
Most mutual funds charge 2.00% on the redemption of shares (including by exchange) held for less than a certain number of calendar days. Performance figures reported do not reflect the deduction of this fee. If reflected, the fee would reduce the performance quoted. Please refer to the fund's prospectus for redemption fee information. TD Ameritrade may also charge its own short-term redemption fee.
TD AMERITRADE RISKS OF INVESTING IN FUNDS: PLEASE READ IMPORTANT ADDITIONAL MUTUAL FUND, EXCHANGE-TRADED FUND, AND CLOSED-END FUND RISK DISCLOSURES
Research and planning tools are obtained by unaffiliated third-party sources deemed reliable by TD Ameritrade. However, TD Ameritrade does not guarantee their accuracy and completeness and makes no warranties with respect to results to be obtained from their use. The Investment Profile report is for informational purposes only.
Mutual Funds: Commentary
Commentary
Read and review commentaries written by Morningstar experts. These observations and insights are specific to Mutual Funds.
The Promise and Peril of Multi-Asset Income
Don’t let the solution for more income be worse than the problem.
Gold Is a Dull Investment
Gold may offer some insurance against a market meltdown, but there is a cost to own it.
The Promise and Peril of Multi-Asset Income
Gold Is a Dull Investment
What Top Fund Managers Bought and Sold in the Third Quarter
These Fund Managers Are True Believers
Making Sense of Convertible Bonds and Where to Find Them
A Topnotch Bond Fund
This Fund Takes a Sensible Approach to Small-Value Stocks
Capital Gains Roundup: 2020 Edition
Stellar Teams Take These Franklin and Pimco Funds Up a Notch
Among the Best Bond Funds
3rd Party Research Disclosure /public-16:38:4
Market Data Disclosure