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iShares Diversified Monthly Income ETF (XTR)
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Fidelity Monthly Income Class Series S5 (FID418)
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TD Tactical Monthly Income Fund - Investor Series (TDB2580)
Q: Can you provide a synopsis of the above (recently inherited) funds? Are either of these funds pure equity? Would you consider them to be worth keeping or is there an ETF or two that will likely allow for better returns?
Appreciate your insight.
Paul F.
Appreciate your insight.
Paul F.
5i Research Answer:
TDB2580 has an MER of 2.04%. It is a tactical balanced monthly income fund, with 33% fixed income exposure and the rest equities. It is approx. half US and half Canada. It has a 4-star Morningstar rating and 1st quartile 10-year returns of 6.15%. For a mutual fund, it has done well enough. XTR would be a similar ETF, but XTR does have lower five year performance by about one percentage point. We would be OK keeping the fund. FID418 MER is 2.08%. 10-year is 4.76%. It is 31% fixed income, and equities are 33% foreign. Indicated yield is 4.18%. With its performance being closer to XTR, we would be fine swapping it. Note XTR has a higher percentage of fixed income than either fund, so is a bit more conservative overall.