Beware of These 3 Funds – You May Be VERY Overweight In XOM Stock

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Beware of These 3 Funds – You May Be VERY Overweight In XOM Stock

ING Corporate Leaders Trust Series B (LEXCX)

ING185 Beware of These 3 Funds   You May Be VERY Overweight In XOM StockXOM Stock Weight: 11%

Fellow InvestorPlace Contributor Will Ashworth’s favorite mutual fund — the ING Corporate Leaders Trust Series B (LEXCX) — is a quirky beast. LEXCX was created in 1935 with an equal number of common stock shares of the 30 leading U.S. companies at the time. New stocks can’t be purchased, so the fund’s holdings have changed only due to spin-offs or mergers.

Currently, LEXCX has only 22 holdings … including XOM stock.

However, that highly concentrated nature puts XOM stock at 10.55% of assets and makes it the second-largest holding for the mutual fund. And with a relatively small asset base — only about $1.5 billion — XOM stock is major contributor to the fund’s overall long term performance.

Sure, that performance has been pretty stellar. However, with many analysts now predicting that XOM stocks go-go days are behind it, LEXCX could suffer with its large stake in the integrated giant. Investors may want to think twice about adding XOM stock to their portfolios if they have already followed Will’s advice and added LEXCX.


Article printed from InvestorPlace Media, http://investorplace.com/2013/12/xom-stock-iye-jkf-vti/.

©2014 InvestorPlace Media, LLC

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