Heartland Select Value Inst (HNSVX)
Expense Ratio: 0.91%
Expected Lifetime Fees: $27,352.50
The Heartland Select Value Inst fund (HNSVX) is a Mid-Cap Value fund started on 5/1/2008 and has $715.10 million in assets under management. The current manager has been running Heartland Select Value Inst since 3/25/2004. The fund is rated by Morningstar. This fund does not charge 12b-1 fees.
Vanguard Mid-Cap Value ETF (VOE)
Expense Ratio: 0.10%
Expected Lifetime Fees: $3,271.86
The Vanguard Mid-Cap Value ETF (VOE) is an Exchange Traded Fund. It is a "basket" of securities that index the Mid-Cap Value investment strategy and is an alternative to a Mid-Cap Value mutual fund. Fees are very low compared to a comparable mutual fund like Heartland Select Value Inst because computers automatically manage the stocks.
|Mutual Fund Name||Ticker Symbol||Turnover||Assets (M)||Annual Fees|
|American Beacon Mid Cap Value AMR||AMDIX||107.0%||182||0.84%|
|American Century Mid Cap Value Inst||AVUAX||82.0%||2,200||0.81%|
|BlackRock Mid Cap Value Opps Instl||MARFX||68.0%||416||0.89%|
|Columbia Mid Cap Value Opportunity R5||RSCMX||46.0%||1,600||0.81%|
|Columbia Mid Cap Value Z||NAM1Z||39.0%||3,600||0.90%|
|Columbia Mid Cap Value Z||NAMAX||39.0%||3,600||0.90%|
|DFA US Vector Equity I||DFVEX||10.0%||1,800||0.33%|
|Fidelity Mid Cap Value||FSMVX||173.0%||566||0.88%|
|Franklin Balance Sheet Investment Adv||FBSAX||9.7%||1,300||0.70%|
|Goldman Sachs Mid Cap Value Instl||GSMCX||77.0%||7,400||0.76%|
|Managers AMG Systematic Mid Cap Value I||SYIMX||114.0%||284||0.88%|
|Neuberger Berman Equity Income Inst||NBHIX||22.0%||2,400||0.80%|
|Perkins Mid Cap Value Fund Class I||JMVAX||66.0%||12,600||0.85%|
|Pioneer Mid-Cap Value Y||PYCGX||72.0%||1,100||0.73%|
|T. Rowe Price Mid-Cap Value||TRMCX||53.6%||8,500||0.81%|
|TIAA-CREF Mid-Cap Value Instl||TIMVX||39.0%||2,900||0.46%|
|TIAA-CREF Mid-Cap Value Premier||TRVPX||39.0%||2,900||0.61%|
|TIAA-CREF Mid-Cap Value Retail||TCMVX||39.0%||2,900||0.81%|
|TIAA-CREF Mid-Cap Value Retire||TRVRX||39.0%||2,900||0.71%|
|Touchstone Mid Cp Val Opp Instl||TMOIX||100.6%||100||0.90%|
|Vanguard Mid-Cap Value Index Inv||VMVIX||41.0%||1,700||0.24%|
|Vanguard Selected Value Inv||VASVX||25.0%||4,000||0.45%|
Turnover represents how much of a mutual fund's holdings are changed over the course of a year through buying and selling. Active mutual funds have an average turnover rate of about 85%, meaning that funds are turning over nearly all of their holdings every year. A high turnover means you could make lower returns because: 1) buying and selling stocks costs money through commissions and spreads and 2) the fund will distribute yearly capital gains which increases your taxes. Look for funds with turnover rates below 50%. For comparison, ETF turnover rates average around 10% or lower.
Generally, smaller funds do better than larger ones. The more assets in a mutual fund, the lower the chance that it will beat its index. Managers outperform an index by choosing stocks that are undervalued. In order to find these undervalued stocks, the manager has to know more than his competitors to develop an "edge." There are only a finite number of stocks a mutual fund manager can reasonably analyze and actively track to gain such a competitive edge. When the fund has more assets, the manager must analyze large companies because he needs to take larger positions. Large companies are more efficiently priced in the market and it becomes increasingly difficult to get an edge.