Mutual Funds: Premier List |
Tuesday, March 21, 2023 10:26:51 PM EST
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This content is for self-directed use only. It is not intended as a recommendation.
TD Ameritrade's Premier List of Mutual Funds Powered by Morningstar Research Services - Click the fund symbols above to view standardized performance current to the most recent calendar quarter end, and performance current to the most recent month end.
Risks of High-Yield Bonds
Bonds with a credit rating below investment grade generally have higher coupon yields and additional risks. One risk is the higher possibility of default, where the company would not be able to continue to make interest payments or return an investor's principal (capital investment) when a bond matures. For More...
Bonds with a credit rating below investment grade generally have higher coupon yields and additional risks. One risk is the higher possibility of default, where the company would not be able to continue to make interest payments or return an investor's principal (capital investment) when a bond matures. For More...
Risks of Bond Funds vs. Individual Bonds
Bond funds give an investor the benefits of diversification and professional money management; but they differ from buying an individual bond. An individual bond has a maturity date and the holder (barring default of the issuer) would receive their investment capital back upon maturity. Bond funds do not have a maturity date. The portfolio manager of an actively managed bond fund would most likely sell a bond prior to this date to reinvest in other bonds or to raise cash to meet redemptions by fund shareholders. If an Advisor needs to raise an unusual amount of cash they may need to sell bonds before they want to and at prices lower then they wish. In this case the overall value of the fund share price (net asset value) would be lower and result in a possible capital loss upon shareholders' redemption. For More...
Bond funds give an investor the benefits of diversification and professional money management; but they differ from buying an individual bond. An individual bond has a maturity date and the holder (barring default of the issuer) would receive their investment capital back upon maturity. Bond funds do not have a maturity date. The portfolio manager of an actively managed bond fund would most likely sell a bond prior to this date to reinvest in other bonds or to raise cash to meet redemptions by fund shareholders. If an Advisor needs to raise an unusual amount of cash they may need to sell bonds before they want to and at prices lower then they wish. In this case the overall value of the fund share price (net asset value) would be lower and result in a possible capital loss upon shareholders' redemption. For More...
Risks of Floating Rate Loan Funds
These funds invest in loans, where banks have lent money to a company and then the loan is traded between parties. The company taking out the loan pays the loan holder interest and at maturity (barring default) they receive back the principal amount of the loan. Companies that enter into these loans are charged higher rates of interest because they usually have a larger then average amount of debt (for their industry) which makes them a highly leveraged company with additional credit risk. The loan holder receives higher interest payments from the borrower company because of the added risk of that company not being able to meet future interest payments and or defaulting on the loan. The term "floating" is used because the rates of the loans held by the fund reset, usually every 30, 60 or 90 days, with rates related to a reference rate, such as the London Interbank Offered Rate (LIBOR). Where corporate bonds trade in an organized market, Floating Rate Loan trading is largely unregulated. An investor should consider the added credit, liquidity and valuation risk before making this type of investment. For More...
These funds invest in loans, where banks have lent money to a company and then the loan is traded between parties. The company taking out the loan pays the loan holder interest and at maturity (barring default) they receive back the principal amount of the loan. Companies that enter into these loans are charged higher rates of interest because they usually have a larger then average amount of debt (for their industry) which makes them a highly leveraged company with additional credit risk. The loan holder receives higher interest payments from the borrower company because of the added risk of that company not being able to meet future interest payments and or defaulting on the loan. The term "floating" is used because the rates of the loans held by the fund reset, usually every 30, 60 or 90 days, with rates related to a reference rate, such as the London Interbank Offered Rate (LIBOR). Where corporate bonds trade in an organized market, Floating Rate Loan trading is largely unregulated. An investor should consider the added credit, liquidity and valuation risk before making this type of investment. For More...
Risks of Structured Retail Products
Some mutual funds may invest in structured securities that generate income. The fund's prospectus and Statement Additional Information would detail a fund's ability to invest in these securities. Generally, structured securities are considered unsecured debt where payments are generally linked to the value of other underlying assets or an index. Some allow for all or part of your investment to be guaranteed if held to maturity or if they are called (redeemed) by the issuer. However structured securities can have significant drawbacks which include credit risk, market risk, lack of liquidity and higher fees. For More...
Some mutual funds may invest in structured securities that generate income. The fund's prospectus and Statement Additional Information would detail a fund's ability to invest in these securities. Generally, structured securities are considered unsecured debt where payments are generally linked to the value of other underlying assets or an index. Some allow for all or part of your investment to be guaranteed if held to maturity or if they are called (redeemed) by the issuer. However structured securities can have significant drawbacks which include credit risk, market risk, lack of liquidity and higher fees. For More...
Risks of the Unique Aspects of Leveraged Mutual Funds
Leveraged mutual funds seek to deliver multiples of the performance of a benchmark. Leveraged mutual funds entail unique risks, including but not limited to: use of leverage; aggressive and complex investment techniques; and use of derivatives. Leveraged mutual funds seek results over periods as short as a single day. Results of this strategy can be affected substantially by compounding. Returns over longer periods will likely differ in amount and even direction from the benchmark for the same period of time. For More...
Leveraged mutual funds seek to deliver multiples of the performance of a benchmark. Leveraged mutual funds entail unique risks, including but not limited to: use of leverage; aggressive and complex investment techniques; and use of derivatives. Leveraged mutual funds seek results over periods as short as a single day. Results of this strategy can be affected substantially by compounding. Returns over longer periods will likely differ in amount and even direction from the benchmark for the same period of time. For More...
Leveraged Mutual Funds - Special Considerations to Understand
What is a leveraged mutual fund?
As the name implies, these mutual funds seek to provide leveraged returns based on the performance of a particular benchmark. It's important to note that these funds seek to provide these leveraged returns on a daily basis. Due to the impact of what is known as daily compounding, investors should not expect the promised daily leverage of these returns to persist over periods longer than a day. This is especially true if the leveraged fund is tracking a very volatile underlying index. Leveraged funds seek daily returns that are generally 3x, 2x, or inverse leverage -2x, or -3x of the underlying index performance. Leveraged mutual funds generate their leverage through the use of derivative positions. Because derivatives are taxed differently from equity or fixed-income securities, investors should be aware that these funds may not be managed for tax efficiencies that investors may expect from some mutual fund products. For More...
What is an inverse mutual fund?
These funds are related to leveraged mutual funds in that they seek to provide an opposite or inverse return on a particular benchmark. Similar to leveraged mutual funds, this inverse return is provided on a daily basis, and investors should not expect the promised daily leverage of these returns to persist over periods longer than a day. Inverse mutual funds generate their returns through the use of derivative positions. Because derivatives are taxed differently from equity or fixed-income securities, investors should be aware that these funds may not be managed for tax efficiencies that investors may from some mutual fund products. For More...
Inverse and leveraged Funds are not suitable for all investors. They should only be utilized by investors who understand: the risks associated with the use of leverage, the consequences of seeking daily leveraged investment results, the risks of shorting, and intend to actively monitor and manage their investments.
Performance data quoted represents past performance and is no guarantee of future results. Current performance may be higher or lower 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.
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.
*The Premier List represents what Morningstar Research Services believes to be the "best-in-class" and "top picks" funds in each category from the universe of no-load funds with minimums less than $10,000 and open to new investors available on TD Ameritrade's platform.
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.
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.
See the SEC Guide to Mutual Funds for more information.
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.
The Morningstar Rating™ for funds, or "star rating", is calculated for managed products (including mutual funds, variable annuity and variable life subaccounts, exchange-traded funds, closed-end funds, and separate accounts) with at least a three-year history. Exchange-traded funds and open-ended mutual funds are considered a single population for comparative purposes. It is calculated based on a Morningstar Risk-Adjusted Return measure that accounts for variation in a managed product's monthly excess performance, placing more emphasis on downward variations and rewarding consistent performance. The top 10% of products in each product category receive 5 stars, the next 22.5% receive 4 stars, the next 35% receive 3 stars, the next 22.5% receive 2 stars, and the bottom 10% receive 1 star. The Overall Morningstar Rating for a managed product is derived from a weighted average of the performance figures associated with its three-, five-, and 10-year (if applicable) Morningstar Rating metrics. The weights are: 100% three-year rating for 36-59 months of total returns, 60% five-year rating/40% three-year rating for 60-119 months of total returns, and 50% 10-year rating/30% five-year rating/20% three-year rating for 120 or more months of total returns. While the 10-year overall star rating formula seems to give the most weight to the 10-year period, the most recent three-year period actually has the greatest impact because it is included in all three rating periods.
©2023. Morningstar Research Services LLC. All Rights Reserved. The Morningstar name and logo are registered marks of Morningstar, Inc. Morningstar Research Services LLC is a registered investment adviser and subsidiary of Morningstar, Inc. The information, data, and opinions contained herein include proprietary information of Morningstar Research Services and may not be copied or redistributed for any purpose.
The Premier List represents what Morningstar Research Services believes to be the "best-in-class" and "top picks" funds in each category from the universe of no-load funds with minimums less than $10,000 and open to new investors available on TD Ameritrade's platform. The universe of mutual funds made available on TD Ameritrade's platform does not include all mutual funds available in the marketplace. The universe of mutual funds defined by TD Ameritrade and the Premier List selected by Morningstar Research Services are subject to change at any time without notice. Particular mutual funds on the Premier List may not be appropriate investments for you under your circumstances, and there may be other mutual funds, ETFs, or other investment options offered by TD Ameritrade that are more suitable. Morningstar Research Services may have more favorable opinions of certain mutual funds which are not included in the universe of mutual funds made available through TD Ameritrade. The Morningstar Research Services selections were based on qualitative factors and quantitative analysis in addition to the judgment of Morningstar Research Services' Manager Selection team. Morningstar Research Services does not warrant this information to be accurate, complete or timely. Morningstar Research Services is not responsible for any damages or losses arising from the use of this information and is not acting in the capacity of adviser to individual investors. Past performance is no guarantee of future results.
Morningstar Research Services is not affiliated with TD Ameritrade or its affiliates.
Certain funds, such as Rydex Dynamics Funds and Direxion, price twice a day if you trade them directly with the fund company. Trades placed with TD Ameritrade will be transacted once daily at the closing net asset value on the trade date and are subject to regular mutual fund settlement rules.
For a more complete discussion of risk factors applicable to each currency product, carefully read the particular product's prospectus.
3rd Party Research Disclosure /public-22:26:51