Companies Economy International The Buzz Street Sweep Corrections Pre-market Trading After-hours Trading US Stocks Bonds and Interest Rates Currencies Commodities Mutual Funds World Markets Subscribe to Real Money Newsletter Subscribe to Money Magazine Money Magazine Real Estate Taxes Jobs Ask the Expert Money 101 Autos Mutual Funds The Help Desk Loan Center Best Places to Live Subscribe to Money Magazine Ask the Expert Ultimate Guide to Retirement Retirement Calculators Rules of Retirement Best Funds Best Places to Retire Fortune Tech Apple 2.0 Google 24/7 Techmate Tech Talk Questions & Answers Innovation Nation Small Business Video 50 Best Places to Launch Resource Guide Next Little Thing Subscribe to Fortune Magazine Fortune 500 Fortune Tech Fortune Finance Investing Management Executive Interviews Rankings Log in Register Log Out Profile Alerts Newsletters My Watchlist

Money 70: Best mutual funds and ETFs

Last year's roller-coaster market showed why it pays to be patient with your investments. The Money 70, our recommended list of mutual funds and ETFs, will help you buy and hold your way to your long-term goals.

By Penelope Wang, Money Magazine senior writer

(Money Magazine) -- For the Money 70, our recommended list of mutual and exchange-traded funds, 2009 was a year of vindication. After the vast majority of the funds on our list suffered steep losses in 2008's credit crisis, almost all rebounded strongly last year -- with many posting double-digit gains. But short-term returns aren't the point. It's far more important for you to focus on long-term results.

This list was never intended to be a collection of hot funds. Instead, the point of the Money 70 is to give you a menu of high-quality funds and ETFs that you can use to construct a well-diversified portfolio, which in turn will help you achieve your long-term financial goals.

And over lengthy periods of time, Money 70 funds have proved worthwhile -- provided you stuck with them in good times and bad. Take the case of Royce Pennsylvania Mutual. In a decade where gains were hard to come by in the U.S. stock market, this small-cap fund earned 9.5% a year vs. 3.9% for small stocks in general. Yet by moving money into and out of the fund at the worst possible times, Pennsylvania Mutual investors earned just 3.9% annually, according to Morningstar.

The good news: Many Money 70 investors are more patient than average. For example, while Vanguard Windsor II returned 3.8% annually over the past decade, investors in the blue-chip stock fund earned nearly all of that: 3.4% a year.

It just goes to show that you don't need to try to outguess or outperform the market to be a successful investor. Just choose a sensible, long-term strategy and have the patience to hold on during inevitable bad times. This group of funds was designed to help you do just that.

See more on how we picked the funds and what changes we've made since last year.

Large Cap

Fund YTD Return 5 yr Return Expense Ratio Type
AMRMX American Funds Mutual Fun... -1.21% +0.87% 0.67% Value
SSHFX Sound Shore Fund -4.02% -1.29% 0.94% Value
PRFDX T Rowe Price Equity Incom... -0.71% -0.53% 0.73% Value
VWNFX Vanguard Windsor II Fund -4.77% -1.79% 0.38% Value
FAIRX Fairholme Fund +6.11% +6.41% 1.01% Blend
SWPPX Schwab S&P 500 Index Fund... -0.75% -0.88% 0.10% Blend
SWTSX Schwab Total Stock Market... +0.10% -0.38% 0.12% Blend
FMIHX FMI Large Cap Fund -1.49% +2.81% 0.97% Blend
IVV iShares S&P 500 Index Fun... -0.79% -0.94% 0.09% Blend
SLASX Selected American Shares -3.25% -0.90% 0.94% Blend
VFINX Vanguard 500 Index Fund -1.71% -0.99% 0.18% Blend
VTSMX Vanguard Total Stock Mark... -1.02% -0.51% 0.18% Blend
VTI Vanguard Total Stock Mark... -0.16% -0.41% 0.07% Blend
AMCPX AMCAP Fund -3.49% -0.44% 0.78% Growth
JENSX Jensen Portfolio -2.29% +1.31% 0.96% Growth
TRBCX T Rowe Price Blue Chip Gr... -2.56% -0.28% 0.81% Growth

Mid Cap

Fund YTD Return 5 yr Return Expense Ratio Type
DEFIX Delafield Fund +3.26% +4.34% 1.26% Value
FAMVX FAM Value Fund +1.12% -1.41% 1.28% Blend
VIMSX Vanguard Mid-Cap Index Fu... +4.65% +0.50% 0.27% Blend
VO Vanguard Mid Cap ETF +5.70% +0.57% 0.14% Blend
CAAPX Ariel Appreciation Fund -0.68% +0.15% 1.25% Blend
FPPFX FPA Perennial Fund -0.46% +0.04% 1.07% Growth
MERDX Meridian Growth Fund +6.59% +4.01% 0.86% Growth
POAGX PRIMECAP Odyssey Aggressi... +1.22% +4.45% 0.79% Growth

Small Cap

Fund YTD Return 5 yr Return Expense Ratio Type
PRSVX T Rowe Price Small-Cap Va... +1.56% +1.08% 0.97% Blend
PENNX Royce Pennsylvania Mutual... +0.53% +1.18% 0.92% Blend
NAESX Vanguard Small-Cap Index ... +3.27% +0.47% 0.28% Blend
VB Vanguard Small Cap ETF +4.39% +0.56% 0.14% Blend
RYSEX Royce Special Equity Fund... -0.34% +3.93% 1.17% Blend
RYVPX Royce Value Plus Fund -1.51% +1.41% 1.47% Growth
WAAEX Wasatch Small Cap Growth ... +3.13% +0.06% 1.31% Growth

Multicap

Fund YTD Return 5 yr Return Expense Ratio Type
BRAIX Bridgeway Aggressive Inve... -6.87% -5.83% 1.20% --
MUHLX Wexford Muhlenkamp Fund -5.11% -7.16% 1.27% --
WEHIX Weitz Hickory Fund +13.25% -1.40% 1.33% --

Specialty

Fund YTD Return 5 yr Return Expense Ratio Type
CSRSX Cohen & Steers Realty Sha... +16.13% +2.38% 1.06% Real Estate
DVY iShares Dow Jones Select ... +4.11% -3.16% 0.40% Dividend Stocks
IGE iShares S&P North Amer Na... -2.94% +3.11% 0.48% Natural Resources
RWX SPDR DJ International Rea... +5.59% -- 0.59% Real Estate
PRNEX T Rowe Price New Era Fund... -4.90% +3.38% 0.69% Natural Resources
VGSIX Vanguard REIT Index Fund +17.45% +1.50% 0.26% Real Estate
VNQ Vanguard REIT ETF +17.72% +1.34% 0.13% Real Estate

Foreign

Fund YTD Return 5 yr Return Expense Ratio Type
DODFX Dodge & Cox International... -1.85% +2.89% 0.65% Large Value
OAKIX Oakmark International Fun... +2.55% +4.72% 1.17% Large Value
AEPGX American Funds EuroPacifi... -3.26% +4.63% 0.85% Large Blend
FSIIX Fidelity Spartan Internat... -4.63% +0.89% 0.20% Large Blend
VEA Vanguard Europe Pacific E... -3.65% -- 0.15% Large Blend
VEU Vanguard FTSE All World e... -1.31% -- 0.25% Large Blend
VWIGX Vanguard International Gr... -0.77% +3.59% 0.53% Large Blend
VGTSX Vanguard Total Internatio... -2.57% +2.79% 0.32% Large Blend
ARTIX Artisan International Fun... -7.60% +1.86% 1.22% Large Growth
VFSVX Vanguard FTSE All-World e... +3.96% -- 0.63% Small/Mid Growth
PRIDX T Rowe Price Internationa... +2.06% +5.53% 1.29% Small/Mid Growth
NEWFX American Funds New World ... +4.94% +10.28% 1.18% Emerging Markets
PRMSX T Rowe Price Emerging Mar... +3.42% +9.88% 1.32% Emerging Markets
VEIEX Vanguard Emerging Markets... +2.70% +11.55% 0.40% Emerging Markets
VWO Vanguard Emerging Markets... +3.85% +11.61% 0.27% Emerging Markets

Bond

Fund YTD Return 5 yr Return Expense Ratio Type
AHITX American Funds High-Incom... +3.20% +5.78% 0.80% High Yield
DODIX Dodge & Cox Income Fund +3.63% +6.22% 0.43% Intermediate Term
FPNIX FPA New Income Fund +0.92% +4.32% 0.60% Intermediate Term
HABDX Harbor Bond Fund +7.33% +7.48% 0.60% Intermediate Term
TIP iShares Barclays TIPS Bon... +3.61% +5.19% 0.20% Inflation Protected
RPIBX T Rowe Price Internationa... +0.51% +5.12% 0.82% World
VIPSX Vanguard Inflation-Protec... +5.02% +5.06% 0.25% Inflation Protected
VWITX Vanguard Intermediate-Ter... +3.49% +4.82% 0.20% Muni
VBISX Vanguard Short-Term Bond ... +2.50% +5.05% 0.22% Short Term
BSV Vanguard Short Term Bond ... +2.35% -- 0.12% Short Term
VBMFX Vanguard Total Bond Marke... +4.93% +5.91% 0.22% Intermediate Term
BND Vanguard Total Bond Marke... +4.64% -- 0.12% Intermediate Term

Target Retirement

Fund YTD Return 5 yr Return Expense Ratio Type
TRRFX T Rowe Price Retirement 2... +3.26% +3.65% 0.60% --
VTTHX Vanguard Target Retiremen... +0.34% +0.68% 0.19% --
Note: While Money Magazine recommends all target retirement funds in the T. Rowe Price and Vanguard fund families, data listed are for the T. Rowe Price Retirement 2005 and Vanguard Target Retirement 2035.
Data as of 3:16pm ET

Sponsors

Sections

Just because oil isn't leaking into the gulf doesn't mean Obama shouldn't seize on oil rig explosions to make the case for comprehensive regulatory reform More

The president's plan for roads and rail gets high marks for efficiency, but has little chance of passing. More

A former Ford engineer teams up with an Italian auto parts supplier to clean up motorcycle emissions in Asia. More

The state university system agrees to abide by reforms developed by the New York Attorney General. More

Please create a screen name to access this feature.

Screen name (Select one with 3-12 characters; Numbers and letters only)


Forgot password

Enter your e-mail address below and we will send you an e-mail with a link and code to reset your password.

E-mail

Already have the reset code?

Password selection

E-mail

Reset code

New password

Log in & let's get started!

E-mail

Password

Forgot password?


Not a member yet?

Sign up now for a free account

Sign up or log in

Screen name

Select one with 3-12 characters;
Numbers and letters only

E-mail

Make sure you typed it correctly.
You will receive an e-mail to validate your account

Password

Make it 6-10 characters, no spaces

We're Sorry!

This service is temporarily unavailable. Please try again soon.


 

 


Thanks!

Please check your e-mail and click the link to confirm your membership. Then, you'll be ready to participate in all activities and conversations on our site.

Go to your Profile page


Newsletters
© 2010 Cable News Network. A Time Warner Company. All Rights Reserved. Terms under which this service is provided to you. Privacy Policy. Advertising Practices.
Home Portfolio Calculators Contact Us Newsletters Podcasts RSS Mobile Widgets Site Map User Preferences Advertise with Us
Magazine Customer Service Download Fortune Lists Reprints Career Opportunities Special Sections Conferences Business Leader Council
Market indexes are shown in real time, except for the DJIA, which is delayed by two minutes. All times are ET. Disclaimer
LIBOR Warning: Neither BBA Enterprises Limited, nor the BBA LIBOR Contributor Banks, nor Reuters, can be held liable for any irregularity or inaccuracy of BBA LIBOR. Disclaimer.
Morningstar: © 2010 Morningstar, Inc. All Rights Reserved. Disclaimer
The Dow Jones IndexesSM are proprietary to and distributed by Dow Jones & Company, Inc. and have been licensed for use. All content of the Dow Jones IndexesSM © 2010 is proprietary to Dow Jones & Company, Inc
Chicago Mercantile Association. The market data is the property of Chicago Mercantile Exchange Inc. and its licensors. All rights reserved.
FactSet Research Systems Inc. 2010. All rights reserved.