5 ETF Replacements for Overpriced Mutual Funds

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5 ETF Replacements for Overpriced Mutual Funds

Real Estate

Vanguard 5 ETF Replacements for Overpriced Mutual FundsMutual Fund: CGM Realty
ETF Replacement:
Vanguard REIT Index

By looking at the 8% total return of the CGM Realty (MUTF:CGMRX) fund — which leverages high-yielding REITs — you would think the real estate market had a tough time in 2012.

However, the Vanguard REIT Index ETF (NYSE:VNQ) — which tracks the MSCI US REIT Index, spanning small-to-large-cap REITs — did much better, with a gain of 15.4%.

Part of it was fund manager Ken Heebner’s choice of stocks, but also adding to that disparity was 0.88% in expenses for CGMRX vs. just 0.1% for VNQ. That said, you at least didn’t have to pay even more up front for that underperformance — CGMRX mercifully does not charge a load fee.


Article printed from InvestorPlace Media, http://investorplace.com/2012/12/5-etf-replacements-for-overpriced-mutual-funds/.

©2014 InvestorPlace Media, LLC

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