Read and review commentaries written by Morningstar experts. These observations and insights are specific to Mutual Funds.
Weekly Wrap: Annuities, Stock Picks, and Model Portfolios
We recap the week on Morningstar.com and note the most popular stocks, funds, and exchange-traded funds.
by Morningstar.com | 2021-09-10 04:00:00
Editor's note: Read the latest on how the coronavirus is rattling the markets and what investors can do to navigate it.Like the Scouts, we at Morningstar believe in being prepared. We encourage investors to diversify their portfolios so they're prepared to weather stock market storms. We suggest retirees maintain a cash bucket so they're prepared to cover near-term living expenses in retirement. And we think stock investors should prepare for down markets by maintaining a list of high-quality stocks to buy on weakness.When it comes to being prepared with the bond portion of your portfolio, it really boils down to one of two things today: accepting paltry … Full Story
The State of Low-Yielding Bond Funds
Fixed-income investors are between a rock and a hard place: accept low returns or add incremental return at the risk of significant losses.
by Brian Moriarty | 2021-09-03 04:00:00
Yields are low. Rates are more likely to go up than down. Real returns are negative. By now, the plight of bond funds is well known, and for good reason. The lower that starting yields are, the lower the return that investors can expect from their bonds going forward. This is a mathematical certainty.This article will review the current state of four bond Morningstar Categories: short-term bond, intermediate core bond, intermediate core-plus bond, and multisector bond. These four represent the primary bond categories, with other categories such as ultrashort bond and high-yield bond acting in supporting roles. Because funds from one or more of the "big four" are likely to make up the core of an investor's fixed-income allocation, it is important to understand that allocation and build proper expectations for it before layering on suppo… Full Story
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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.
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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.
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Mutual Funds: Commentary
Commentary
Read and review commentaries written by Morningstar experts. These observations and insights are specific to Mutual Funds.
Weekly Wrap: Annuities, Stock Picks, and Model Portfolios
We recap the week on Morningstar.com and note the most popular stocks, funds, and exchange-traded funds.
The State of Low-Yielding Bond Funds
Fixed-income investors are between a rock and a hard place: accept low returns or add incremental return at the risk of significant losses.
Weekly Wrap: Annuities, Stock Picks, and Model Portfolios
The State of Low-Yielding Bond Funds
Weekly Wrap: What You Should Know About Tesla, Long-Term Care Plans, and the Economy
Manager Changes Diminish These Funds
Size Your Bets With Strategic Beta
Vanguard to Offer New Active Funds for Advisory Clients
What Do Fund Managers Really Think of Cryptocurrency?
Shades of Green in the Bond Market
5 of the Biggest Upgrades in 2021
Future Retirements Whack the Present U.S. Morningstar Analyst Ratings of 2 Accomplished T. Rowe Price and Vanguard Funds
3rd Party Research Disclosure /public-0:17:7
Market Data Disclosure