JPMorgan NY Tax Free Bond A (VANTX)
Expense Ratio: 0.75%
Expected Lifetime Fees: $22,921.88
The JPMorgan NY Tax Free Bond A fund (VANTX) is a Muni New York Intermediate fund started on 2/16/2001 and has $807.40 million in assets under management. The current manager has been running JPMorgan NY Tax Free Bond A since 4/23/2005. The fund is rated by Morningstar. In addition to trading fees and broker commissions, this fund has 12b-1 fees of 0.25%
SPDR Barclays Capital New York Muni Bond (INY)
Expense Ratio: 0.20%
Expected Lifetime Fees: $6,475.12
The SPDR Barclays Capital New York Muni Bond (INY) is an Exchange Traded Fund. It is a "basket" of securities that index the Muni New York Intermediate investment strategy and is an alternative to a Muni New York Intermediate mutual fund. Fees are very low compared to a comparable mutual fund like JPMorgan NY Tax Free Bond A because computers automatically manage the stocks.
|Mutual Fund Name||Ticker Symbol||Turnover||Assets (M)||Annual Fees|
|BNY Mellon NY Intermediate T/E Bd M||MNYMX||21.9%||213||0.59%|
|Columbia NY Intermediate Muni Bd T||GANYX||8.0%||328||0.65%|
|Columbia NY Intermediate Muni Bd Z||GNYTX||8.0%||328||0.50%|
|Franklin NY Interm-Term T/F Income Adv||FNYZX||7.2%||905||0.56%|
|Franklin NY Intermediate T/F Income A||FKNCZ||7.2%||905||0.66%|
|Franklin NY Intermediate T/F Income A||FKNIX||7.2%||905||0.66%|
|JPMorgan NY Tax Free Bd Instl||JNYIX||5.0%||807||0.50%|
|JPMorgan NY Tax Free Bd Sel||VINTX||5.0%||807||0.69%|
|Legg Mason WA Interm Maturity NY Muni A||IMNCZ||12.0%||260||0.74%|
|Oppenheimer Limited Term NY Municipal A||LTNSZ||15.0%||5,200||0.74%|
|Oppenheimer Limited Term NY Municipal A||LTNYX||15.0%||5,200||0.74%|
|SEI Tax-Exempt NY Municipal Bond||SENYX||18.0%||110||0.60%|
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.