For The Young At Heart
Morningstar gives this next fund five stars. That gets my attention because they give LEXCX, my favorite, only four stars. The Monetta Young Investor Fund (MYIFX) employs what it calls a “core-plus” investment approach that puts 50% of the fund’s net assets in ETFs and other funds that track the S&P 500. It puts the other 50% in large caps stocks whose products and services are well-known to investors. Open to all ages, it was originally brought to market in 2006 with a focus on children and teenagers.
Although it has moved its stock selection focus away from stocks well-known by children, it still maintains a financial literacy component geared to young investors. Its current holdings include one mutual fund, seven ETFs and 45 stocks. Over the past five years, it has achieved an annualized total return of 22.9% — 530 basis points higher than the S&P 500.
The only caveat: its annual expense ratio is 1.10% due in part to a 62% turnover rate. However, Morningstar rates its fees average, and you can’t argue with its performance.