Oppenheimer Limited Term California Municipal Fund Class Y (OLCYX)
Expense Ratio: 0.61%
Expected Lifetime Fees: $18,917.58
The Oppenheimer Limited Term California Municipal Fund Class Y fund (OLCYX) is a Muni California Intermediate fund started on 11/29/2010 and has $452.20 million in assets under management. The current manager has been running Oppenheimer Limited Term California Municipal Fund Class Y since 03/17/2004. The fund is rated by Morningstar. This fund does not charge 12b-1 fees.
iShares S&P California Municipal Bond (CMF)
Expense Ratio: 0.25%
Expected Lifetime Fees: $8,051.41
The iShares S&P California Municipal Bond (CMF) is an Exchange Traded Fund. It is a "basket" of securities that index the Muni California Intermediate investment strategy and is an alternative to a Muni California Intermediate mutual fund. Fees are very low compared to a comparable mutual fund like Oppenheimer Limited Term California Municipal Fund Class Y because computers automatically manage the stocks.
|Mutual Fund Name||Ticker Symbol||Turnover||Assets (M)||Annual Fees|
|American Century CA Interm-T T-Fr Bd Ins||BCTIX||49.0%||1,100||0.28%|
|American Century CA Interm-T T-Fr Bd Inv||BCI1Z||49.0%||1,100||0.48%|
|American Century CA Interm-T T-Fr Bd Inv||BCITX||49.0%||1,100||0.48%|
|Columbia CA Intermediate Muni Bond Z||NCM2Z||9.0%||278||0.48%|
|Columbia CA Intermediate Muni Bond Z||NCMAX||9.0%||278||0.48%|
|Franklin CA Interm-Term Tx-Fr Inc Adv||FRCZX||9.4%||1,100||0.54%|
|HighMark CA Interm Tx-Fr Bond Fid||HMITX||32.0%||252||0.54%|
|JPMorgan CA Tax Free Bond Instl||JPICX||7.0%||390||0.52%|
|JPMorgan CA Tax Free Bond Sel||JPCBX||7.0%||390||0.57%|
|Legg Mason WA Interm Maturity CA Muni I||SICYX||5.0%||196||0.60%|
|Northern CA Intermediate Tax-Exempt||NCITX||53.2%||332||0.45%|
|PIMCO CA Intermediate Muni Bd Instl||PCIMX||32.0%||136||0.45%|
|Schwab CA Tax-Free Bond||SWCAX||68.0%||423||0.49%|
|SEI Tax-Exempt CA Municipal Bond A||SBDAX||12.0%||173||0.60%|
|Vanguard CA Interm-Term Tax-Exempt Adm||VCADX||13.0%||6,200||0.12%|
|Vanguard CA Interm-Term Tax-Exempt Inv||VCAIX||13.0%||6,200||0.20%|
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.