MMU1Z - MFS Utilities A

Don't let mutual funds siphon away your returns.
Get our FREE Report: "Index Funds and ETFs – A Smarter Way To Invest"
Your Mutual Fund

MFS Utilities A (MMU1Z)
Expense Ratio: 1.04%
Expected Lifetime Fees: $30,840.98

The MFS Utilities A fund (MMU1Z) is a Utilities fund started on 02/14/1992 and has $4.20 billion in assets under management. The current manager has been running MFS Utilities A since 03/6/1992. The fund is rated by Morningstar. In addition to trading fees and broker commissions, this fund has 12b-1 fees of 0.25%

MarketRiders Prefers The Following ETF

Utilities Select Sector SPDR (XLU)
Expense Ratio: 0.19%
Expected Lifetime Fees: $6,157.84

The Utilities Select Sector SPDR (XLU) is an Exchange Traded Fund. It is a "basket" of securities that index the Utilities investment strategy and is an alternative to a Utilities mutual fund. Fees are very low compared to a comparable mutual fund like MFS Utilities A because computers automatically manage the stocks.

The Following Utilities Funds Have Lower Fees Than MFS Utilities A (MMU1Z). Why are these metrics important?
Mutual Fund Name Ticker Symbol Turnover Assets (M) Annual Fees
American Century Utilities Inv BULIX 17.0% 295 0.69%
FBR Gas Utility Index Investor GASFX 17.0% 603 0.71%
Fidelity Advisor Utilities I FUGIX 201.0% 176 0.98%
Fidelity Telecom and Utilities FIUIX 160.0% 919 0.75%
Franklin Utilities A FKUSZ 5.2% 4,100 0.76%
Franklin Utilities A FKUTX 5.2% 4,100 0.76%
Franklin Utilities Adv FRUAX 5.2% 4,100 0.61%
MFS Utilities I MMUIX 51.0% 4,200 0.79%
MFS Utilities R4 MMUJX 51.0% 4,200 0.79%
Prudential Jennison Utility A PRUCZ 51.0% 2,700 0.89%
Prudential Jennison Utility Z PRUZX 51.0% 2,700 0.59%
Putnam Global Utilities Fund Class Y PUTYX 42.0% 211 1.03%
Vanguard Utilities Index Adm VUIAX 6.0% 1,400 0.19%
Wells Fargo Advantage Utility & Telecommunications Fund Administrator Class EVUDX 36.0% 379 0.96%
Wells Fargo Advantage Utility&Telecom I EVUYX 36.0% 379 0.79%

Search for a mutual fund by symbol or name:

Why Are These Metrics Important?

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.