Top 5 Emerging Market Mutual Funds

With developed countries (USA & Europe) economy is cooling down or at least slow down, everyone will look at growing sector or market to invest. One of these markets is diversified emerging market.

Emerging market usually include most developing countries in Asia, Africa and Eastern Europe. Some of these countries are known as BRIC acronym (Brazil, Russia, India and China). Most analysts predict emerging market will drive all future growth for the next decade. Investor should look to invest in emerging market. Emerging market is part of international market; this mean investing in this emerging market can be volatile at the times. Please invest responsibly.

Best Emerging Markets Funds

I think emerging market should be part of your investment portfolio whether it is in your 401k retirement or brokerage account. The question is how to invest in emerging market; there are two easy ways to invest such as using ETF and Mutual Funds.

The following article will discuss about Top 5 mutual funds in emerging market. The following is top 5 emerging market mutual funds in term of asset. What I like is usually big asset is equal to big confident by investor or institutional money to invest in this fund. I also like most of these asset managers as they are well known to many investors

1. Vanguard Emerging Market Stock Index, VEIEX
2. American Funds New World Fund A, NEWFX
3. Lazard Emerging Markets Equity, LZOEZ
4. Oppenheimer Developing Markets, ODMAX
5. DFA Emerging Markets Value Portfolio DFEPX

Vanguard Emerging Market Stock Index

The Vanguard Emerging Market Stock Index portfolio tracks the MSCI Emerging Markets Index, which is weighted toward the largest companies in the largest emerging markets. The fund performance is as follows (VEIEX): 1 Year: 19.73% per year 3 Year: -2.19% per year 5 Year: 13.50% per year 10 Year: 13.66% per year.

American Funds New World Fund

This American Funds’ New World Fund is a diversified international fund that has managed to stay less volatile than most other emerging-market rivals.

Lazard Emerging Markets Equity

The Lazard Emerging Markets Equity Portfolio fund has performed better by picking undervalued stocks of companies based in a wide selection of emerging-market countries. The Lazard Emerging Markets Equity fund objective is to provide long-term capital appreciation by investing in companies with strong, sustainable financial productivity at attractive valuations.

Oppenheimer Developing Markets Fund

The Oppenheimer Developing Markets investment aggressively seeks capital appreciation. The fund normally invests more than 80% of assets in equity securities of issuers whose principal activities are in at least three developing markets.

DFA Emerging Markets Value Portfolio Fund

The primary objective is to seek long-term capital appreciation. The fund invests normally at least 80% of net assets in emerging markets investments that are defined as Approved Markets securities and may purchase emerging market equity securities across all market capitalizations whether it is large cap, mid cap and small cap.

More can be read at: Top 5 Best and Popular Emerging Market Mutual funds

Fidelity Brokerage Account Review

Fidelity Investments is one of financial service provider that offers to buy stock online with various trading platforms for its investors. In addition to low cost stock and options trading Fidelity also has investment management, retirement planning. Fidelity is the largest mutual fund company in the US. They also offer various accounts specialize in IRAs/Rollovers (Roth IRA, Traditional IRA and 401k), CDs, Bonds, and 529 Plans. Fidelity also offers mobile trading application.

Fidelity main page

For me, the brokerage needs to satisfy the following requirement:

1. Low commission fees to trade stocks, etf, mutual funds (if necessary)
2. Reliable, can be access freely thru web, stable trading platform
3. Offer ACH electronic transfer
4. Responsive and contactable customer service

Fidelity definitely fit into my criteria. Ever since they offer 25 ishares ETF for free, my interest using fidelity is growing even more. I have been using my fidelity account for the past 3 years for Roth IRA, investment brokerage account and interest checking account. I also use their credit card which provides 2% cashback on any daily purchase. This is one of the best credit card cashback from my experience. Also please check my other brokerages review such as just2trade, vanguard, Lightspeed, E*trade, Scottrade and Zecco.

The following is the Fidelity details:

Products: Stocks, bonds, mutual funds, annuities, insurance, commercial paper, CDs, IPOs, precious metals, managed portfolios Market Orders: $7.95 Limit Orders: $7.95

Phone FAST Orders: $12.95

Broker Assisted: $32.95

ishares ETFs Orders: $0.00 for 25 ishares ETFs Mutual Funds: $0.00 for Fidelity & NTF funds. Non-NTF: $75.00. Options: $7.95/trade+$0.75/contract Minimum to Open: $2500 Inactivity Fee: $0.00 Some Other Fees: Tender Fee: $38.00.
Maximum Margin Rate: Based on proprietary base rate. 

More detail can be read at hubpages: My Fidelity Brokerage Account Review

Scottrade Stock Brokerage Review

If you are investor or trader and buy stock online as well as buy mutual fund online, you probably know about Scottrade. Scottrade is an online brokerage site that offers various products such as stocks, options and mutual funds. They offer their low cost commissions of $7.00 per trade on three different trading platforms: Scottrade, Scottrade Elite, and Scottrade OptionsFirst. 


Also, Scottrade has over 480 branch offices throughout the United States and has had a consistent track record of being recognized as an industry leader by several different magazines and review groups. While not one of the cheapest online trading platform, Scottrade has been known by investor as well as trader due to its platform, research and community. 

Products: Stocks, options, mutual funds, CDs, munis, Canadian stocks

Market Orders: $7.00 Limit Orders: $7.00

Broker Assisted: $27, Touchtone IVR Phone system: $17

Mutual Funds: $17.00. Load funds also incur a $17.00 redemption fee. Also has NTF funds. Options: $7.00/trade+$1.25/contract

Minimum to Open: $500 Inactivity Fee: $0.00 Some Other Fees: Paper Statement: $2.00 per statement. ACAT In/ Out: $60.00.  
Maximum Margin Rate: Based on proprietary base rate

more details can be read on Hubpages: My Scottrade Brokerage Account Review

E*Trade Online Full Brokerage Review

E*TRADE is an online brokerage site that specialize in stock, option, bond, future and mutual fund. E*trade also provides many additional banking financial services such as High Yield Saving accounts, checking account & mortgage. Etrade also offers a wide selection of trading tools for their customers, as well as low trading commissions. 

E*TRADE also allows its investors or traders to trade stocks on their smart phones such as iPhone and BlackBerry with the use of E*Trade Mobile Pro. They are one of the largest financial brokers in the world with > 4.5 million accounts in about 40 countries with customer assets in excess of $100 billion.

The following is the standard pricing for etrade:

Products: Stocks, options, futures, bonds & mutual fund Market/Limit Orders: $9.99 for stock and/or etf Options: $9.99/trade+$0.75/contract

Futures: $9.99/trade+$2.99/contract Mutual Funds: $0.00 (No Load, NTF) & $19.99 (Transaction-fee Fund)

Broker Assisted: Add $45 (ex: Market order = $54.99)

Minimum to Open: $500 Inactivity Fee: $0.00 with exception
Some Other Fees: Paper Statement: $2.00 per statement; ACAT Out: $60.00.
Maximum Margin Rate: Based on proprietary base rate

Opening an account

Opening account is straight forward; you just need to fill the online application through etrade website. You can open individual, joint, and Individual Retirement accounts (IRA). The following accounts are being offered by etrade such as Employee Stock Plans, Business, Corporate/LCC, Trust & Estate, incestment club, rollover IRA, traditional IRA, Roth IRA, beneficiary IRA, etc. They may require you to submit some identification as well. The application only takes about 10-15 minute. Once you are done, you’ll need to wait for their approval. Then, you can setup how you want to fund your account.

What are the advantages using etrade?

1. Offer several premium services such as excellent trader platform Power Etrade Pro 5.0
2. Best mobile trading application Etrade Mobile Pro for blackberry & Apple iphone
3. Etrade website is very user friendly.
4. There are additional banking services such as Online High Yield Saving account (complete savings), and Checking account (Max-Rate Checking & e*trade checking).
5. Offer international market for trading such as Canada, France, Germany, Hong Kong, Japan, and the United Kingdom.
6. Also offer after hour trading either it is pre market and post market hour.
7. Offer complex and conditional buy or sell order
8. Have an excellent Dividend Reinvestment Plan (DRIP) program

Disadvantages

1. Compare to other brokerage the $9.99 trades is more expensive than discounted competitors such as Fidelity, Charles Schwab, Lightspeed, Just2trade, Vanguard.
2. Some of the premium feature such as Power Etrade Pro is not available to all clients.
3. Account maintenance fees of $25 per quarter for some investor

 Details also can be read on Hubpages: My E*Trade Brokerage Review

Lightspeed Trading Web Trader Brokerage Review

Choosing the right brokerage account is essential for traders or investors. Lightspeed brokerage is one of the top rated discount brokerage account for you. More brokerage review can be found below.

Lightspeed Brokerage

Intro

With current trading and/or investing situation, finding a good online discount brokerage to buy stock online or build investment portfolio is important. The process of choosing the right brokerage can be a headache. One of my regular discount brokerage I have been using is Lightspeed Web Trader. In this article, I’ll describe my knowledge using Lightspeed Web Trader. I have been using this trading platform for the past 2 months.

One of the reasons I choose Lightspeed trading is their low commission for trading as well as their low balance requirement. It only costs $0.0045/share with $1.00 minimum per trade (i.e. 100 shares or less = $1.00) for trading. Lightspeed Trading offers several trading platforms for trading stock, buying option or buying future contract as well as Forex such as:

• Lightspeed Trader – This is a software trading platform for mainly active trader
• Lightspeed Gateway – This is their algorithmic-based or Automated Trading platform for high frequency trading strategies
• Lightspeed Web Trader – Web browser based trading platform. I’ll provide this web based review.
• Lightspeed Forex – This is another software trading platform for forex trader through FOREXTrader Pro

Note: I also have used other discount online brokers such as Zecco, Just2trade, Fidelity, and Vanguard brokerage (VBS)

Compare to other brokerages such as TradeKing, Scottrade, etrade & optionsXpress, lightspeed trading is very competitive.

Products and Services

Lightspeed web trader offers product such as stocks and options. Lightspeed Web Trader has similar platform as Noble Trading web platform since Lightspeed acquired Noble Trading early this year. Minimum balance to open an account for web trader is $1,000 for cash account and $2,000 for margin account. There is no inactivity fee. For foreigner (non US citizen), you can open lightspeed account as well by submitting paper application. Lightspeed provides accounts to individuals, joint holders, retirement accounts (Traditional IRA, Roth, Rollover) etc.

• Products Offering: Stocks, Options, Future (separate account), Forex (Separate account)
• Market Orders: $3.00 per trade
• Limit Orders: $3.00 per trade
• OTCBB and PINK sheet Stocks: $10 (up to 20,000 shares)
• Options: $0.60/contract ($3.00 min)
• Futures: $0.60/contract
• Phone Order: $20 per order
• Minimum fund to Open: $1,000 (Cash) & $2,000 (Margin)
• Account Inactivity Fee: $0.00
• Other Fees: Wire Fee: $20.00 (domestic) ACAT Out: $50.00.
• Maximum Margin Rate: Please refer to lightspeed trading website

Note: There is no Market Center fee for Web Trader users.

New Pricing on 1/15/2012

There will be new commission schedule for Lightspeed WebTrader user on 1/15/2012.

• Lightspeed will eliminate the per-share rate plan. Any customer on per-share rate will be switched to the new per-trade plan.
• Lightspeed will reduce the current per-trade plan from $4.50 per trade to $3.00 per trade.

The new commission will be:

• For equities, $3.00 per trade with 50,000 share maximum order size
• For options, $0.60 per contract ($3.00 minimum commission)

BPSPX Bullish Index Looks Overbought

This post is about the S&P 500 Bullish % Index ($BPSPX). The chart is looking overbought. You can find more information inside.

Looks like thing is very overextended.

$BPSPX

Top Five Popular Mutual Funds

Most people think popularity is one of the most important things in investing. On Bloomberg article on August 16^th week, these top five popular mutual funds are unveil. With the stock market and financial economy in chaos for the past 2 years especially during the period of end of 2008 until early 2009, investors and/or traders have tried to invest in most popular mutual funds as well the cost effective mutual funds.

With the stock market drop around 50-80% of value, most bond mutual fund has increase in value. To no one surprise, the most popular mutual fund is Pimco Total Return. Also, two of index funds from Vanguard also landed in the top five of this list. For complete list the following is top five popular mutual funds.

1. Pimco Total Return
2. American Growth Fund of America
3. Vanguard Total Stock Market
4. American Europacific Growth-A
5. Vanguard 500 Index Fund

PIMCO Total Return Fund

To no one surprise Pimco is number 1 in top 5 popular mutual funds. Pimco Total Return has continuously the leader in bond fund. The mutual fund objective is to seek maximum total return, consistent with preservation of capital and prudent investment management. There are various classes for this bond fund whether it is for individual investor or institutional investors. Some may provide better expense ratio and or no load etc. The lead manager is William H Gross also known as Bill Gross since 1987. Bill Gross is a well known bond guru in investing world.
The bond performance is as follows (PTTRX):

• 1 Year: 12.02% per year
• 3 Year: 11.27% per year
• 5 Year: 7.96% per year
• 10 Year: 7.88% per year

The primary portfolio consist of intermediate term investment grade bond either government bond / treasury, mortgage bond, investment grade corporate bond, high yield corporate bond, emerging markets, municipal bond and other instrument. If you choose this fund, please note that some fund classes have a front end sales load of 3.75%.

This fund is also offered in most 401K fund selection. In my 401k account, I can choose Pimco Total Return with PTTRX ticker. This class of fund doesn’t have any load Front End Sales Load. Other tickers of Pimco Total Return fund are: PTTAX, PTTBX, PTTCX, PTTDX, PMBIX, PTSAX, and PRFAX.

Note: PIMCO is an acronym for The Pacific Investment Management Company, LLC.

American Growth Fund of America

As one of the biggest asset mutual fund, no one will surprise with the popular of this American Fund. The fund objective is to provide growth of capital. It also can invest wherever the best growth opportunities may be (about >65% in common stocks & < 25% foreign stocks). This fund also is being offered in various classes for individual investor or institutional. If you choose this fund, please note that some fund classes have a front end sales load of 5.75%.

The fund is managed by James E. Drasdo, lead manager and by portfolio counselor such as Donnalisa P. Barnum, Gordon Crawford, James F. Rothenberg, Gregg E. Ireland et all.
The primary portfolio consists of growth stocks. The top 3 sectors of fund as June 2010 are Oil & Gas energy sector, software technology sector and Metal & mining sector. Top 10 largest equity holdings for this fund include Google, Oracle, Microsoft, Apple, JP Morgan Chase, Barrick Gold, Cisco systems, Union Pacific, Apache, and Suncor.

Vanguard Total Stock Market

The Fund seeks to track the performance of a benchmark index that measures the investment return of the overall stock market in US stock market (MSCI US Broad Market Index). The fund Invests in more than 3,000 stocks representative of the whole U.S. market. As Typical Vanguard fund, Vanguard Total Stock Market also has a low expense ratio.

As a conscious investor, low expense ratio can be a good thing in a long term investment strategy; this means more return for us the investor. The fund is being managed passively by Gerard C. O’Reilly. As typical vanguard fund, this fund is classified as index fund.

The primary portfolio consists of large cap blend stocks. The top 3 sectors of fund as August 2010 are Technology, Financial and Healthcare sector. Top 10 largest equity holdings for this fund include Exxon Mobil, Apple, Microsoft, Procter & Gamble, General Electric, International Business Machines (IBM), Johnson & Johnson, JP Morgan Chase, AT&T and Chevron.

American Europacific Growth-A

The fund’s investment objective is to provide long-term growth of capital.  The fund invests primarily in common stocks of issuers in Europe and the Pacific Basin that the investment adviser believes have the potential for growth. It normally invests at least 80% of net assets in securities of issuers in Europe and the Pacific Basin. If you choose this fund, please note that some fund classes have a front end sales load of 5.75%. The fund is managed by a lead manager, Stephen E. Bepler as well as portfolio counselors.

This fund is also offered in most 401K fund selection. In my 401k account, I can choose American Europacific Fund with REREX ticker. There is no front end load for this fund class. Other tickers of American Europacific Growth fund are: AEPGX, AEPCX, AEGBX, CEUFX, CEUCX, RERCX, RERFX, CEUEX, AEGFX, RERAX, CEUBX, REREX, RERGX, CEUAX, and AEPFX.

The primary portfolio consists of large cap foreign growth stocks. As of August 2010, the top 3 sectors of fund as August 2010 are Financial, Healthcare and Energy sector. Top 10 largest equity holdings for this fund include America Movil, Anheuser-Busch InBev, Novartis, Novo Nordisk, Bayer, UBS, Daimler, Nestle, Roche, and Softbank.

Vanguard 500 Index Fund - VFINX

This is another vanguard mutual fund offering which tracks S&P 500 index. The investment objective is to track the performance of a benchmark index that measures the investment return of large-capitalization stocks (i.e. large company). As typical vanguard fund, this mutual fund is also a passive management or indexing investment approach designed to track the performance of the Standard & Poor’s 500 Index, which is a widely recognized benchmark of U.S. stock market performance that is dominated by the stocks of large U.S. companies. The fund is being managed passively by Michael H. Buek.

The primary portfolio consists of large cap blend stocks. The top 3 sectors of fund as August 2010 are Technology, Financial and Healthcare sector. Top 10 largest equity holdings for this fund include Exxon Mobil, Apple, Microsoft, Procter & Gamble, General Electric, International Business Machines (IBM), Johnson & Johnson, JP Morgan Chase, AT&T and Chevron.

Where can I purchase these mutual funds?

Usually you will need mutual fund providers as well as brokerage to buy these mutual funds. Please check the following providers:

1. Fidelity – one stop shop for mutual fund or ETF as well as cash management banking
2. Vanguard – offer various mutual funds that track indexes as well as ETF for free
3. T. Rowe Price – only offer their fund
4. Scottrade – Offer various mutual funds. 3,000 No load & No Transaction Fees (NTF) fund for free and 15,000 mutual funds as well as trading account for $7.00 per trade. You can buy the American Fund family for free and please select no load fund.
5. Etrade – Offer various mutual funds as well as trading account
6. Zecco – Offer various no load mutual funds for $10.00 as well as broker trading account with free 10 trades per month with >$25k balance.

Disclaimer: I have no affiliation with any of these mutual funds. I also have no position in any of these funds. Please do your own research for additional details. Please trade and invest responsibly. Past Performance is No Guarantee of Future Results.

Other Best Mutual Funds:

• The 10 Best Balanced Funds for the Past Decade (2012)
• Top 40 Popular Exchange Traded Funds (ETFs) 2011