(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 | ||||
Value | ||||
Fund | 1yr. | 5yrs. | Expenses (as % of assets) | Minimum initial investment |
American Funds American Mutual A | 24.9 | 2.1 | 0.60 | 250 |
Sound Shore | 28.3 | 1.2 | 0.92 | 10,000 |
T. Rowe Price Equity Income | 24.5 | 1.0 | 0.71 | 2,500 |
Vanguard Windsor II | 28.2 | 1.1 | 0.39 | 10,000 |
Blend | ||||
Fund | 1yr. | 5yrs. | Expenses (as % of assets) | Minimum initial investment |
Fairholme | 41.5 | 7.7 | 1.02 | 2,500 |
Schwab S&P 500 Index Sel | 25.3 | 0.7 | 0.09 | 100 |
Schwab Total Stock Market Index Sel | 27.1 | 1.2 | 0.09 | 100 |
FMI Large Cap | 28.3 | 5.1 | 1.00 | 1,000 |
iShares S&P 500 Index ETF | 0.0 | N.A. | 0.00 | N.A. |
Selected American Shares S | 28.8 | 1.1 | 0.92 | 1,000 |
Vanguard 500 Index Investor | 25.4 | 0.6 | 0.18 | 3,000 |
Vanguard Total Stock Mkt Idx | N.A. | N.A. | 0.18 | 3,000 |
Vanguard Total Stock Market ETF | N.A. | N.A. | N.A. | N.A. |
Growth | ||||
Fund | 1yr. | 5yrs. | Expenses (as % of assets) | Minimum initial investment |
American Funds AMCAP A | 36.4 | 1.6 | 0.74 | 250 |
Jensen J | 23.5 | 2.3 | 0.96 | 2,500 |
T. Rowe Price Blue Chip Growth | 41.1 | 1.5 | 0.80 | 2,500 |
Midcap | ||||
Value | ||||
Fund | 1yr. | 5yrs. | Expenses (as % of assets) | Minimum initial investment |
Fidelity Value | 42.5 | 0.2 | 0.76 | 2,500 |
T. Rowe Price Mid-Cap Value | 44.7 | 4.3 | 0.83 | 2,500 |
Blend | ||||
Fund | 1yr. | 5yrs. | Expenses (as % of assets) | Minimum initial investment |
FAM Value Inv | 21.2 | -0.1 | 1.40 | 500 |
Vanguard Mid Capitalization Index | 38.5 | 1.9 | 0.27 | 3,000 |
Vanguard Mid Cap ETF | N.A. | N.A. | N.A. | N.A. |
Growth | ||||
Fund | 1yr. | 5yrs. | Expenses (as % of assets) | Minimum initial investment |
FPA Perennial | 43.6 | 2.1 | 1.02 | 1,500 |
Meridian Growth | 35.5 | 2.9 | 0.86 | 1,000 |
PRIMECAP Odyssey Aggressive Growth | 52.3 | 4.6 | 0.80 | 2,000 |
Small-cap | ||||
Blend | ||||
Fund | 1yr. | 5yrs. | Expenses (as % of assets) | Minimum initial investment |
T. Rowe Price Small-Cap Value | 22.3 | 1.6 | 0.92 | 2,500 |
Royce Pennsylvania Mutual Invmt | 35.6 | 2.5 | 0.91 | 2,000 |
Royce Special Equity Invmt | 25.5 | 3.5 | 1.15 | 2,000 |
Vanguard Small Cap Index | 33.2 | 1.0 | 0.28 | 3,000 |
Vanguard Small Cap ETF | N.A. | N.A. | N.A. | N.A. |
Growth | ||||
Fund | 1yr. | 5yrs. | Expenses (as % of assets) | Minimum initial investment |
Royce Value Plus Svc | 37.9 | 2.2 | 1.48 | 2,000 |
Wasatch Small Cap Growth | 46.6 | 1.1 | 1.21 | 2,000 |
Multicap | ||||
Bridgeway Aggressive Investors 2 | 26.6 | -1.3 | 1.20 | 2,000 |
Muhlenkamp | 30.0 | -3.8 | 1.18 | 1,500 |
Weitz Hickory | 38.3 | -2.9 | 1.31 | 2,500 |
Specialty | ||||
Fund | 1yr. | 5yrs. | Expenses (as % of assets) | Minimum initial investment |
Cohen & Steers Realty Shares | 41.9 | 1.7 | 1.00 | 10,000 |
iShares Dow Jones Select Dividend Index ETF | 0.0 | N.A. | 0.00 | N.A. |
iShares S&P GSSI™ Natural Resources Index Fund of iShares Trust | 0.0 | N.A. | 0.00 | N.A. |
SPDR DJ Wilshire International Real Estate ETF | 0.0 | N.A. | 0.00 | N.A. |
T. Rowe Price New Era | 43.2 | 9.1 | 0.66 | 2,500 |
Vanguard REIT Index | N.A. | N.A. | 0.26 | 3,000 |
Vanguard REIT ETF | N.A. | N.A. | N.A. | N.A. |
Foreign | ||||
Large value | ||||
Fund | 1yr. | 5yrs. | Expenses (as % of assets) | Minimum initial investment |
Dodge & Cox International Stock | 53.3 | 6.1 | 0.64 | 2,500 |
Oakmark International I | 56.3 | 6.5 | 1.10 | 1,000 |
Large blend | ||||
Fund | 1yr. | 5yrs. | Expenses (as % of assets) | Minimum initial investment |
American Funds EuroPacific Gr A | 47.8 | 8.3 | 0.83 | 250 |
Fidelity Spartan International Index Inv | 37.5 | 4.2 | 0.10 | 10,000 |
Vanguard Europe Pacific ETF | N.A. | N.A. | N.A. | N.A. |
Vanguard FTSE All-World ex-US ETF | N.A. | N.A. | N.A. | N.A. |
Vanguard International Growth Inv | N.A. | N.A. | N.A. | 3,000 |
Vanguard Total Intl Stock Index | N.A. | 5.9 | 0.34 | 3,000 |
Large growth | ||||
Fund | 1yr. | 5yrs. | Expenses (as % of assets) | Minimum initial investment |
Artisan International Inv | 48.4 | 5.9 | 1.22 | 1,000 |
Small/mid growth | ||||
Fund | 1yr. | 5yrs. | Expenses (as % of assets) | Minimum initial investment |
T. Rowe Price International Discovery | 62.3 | 8.9 | 1.24 | 2,500 |
Vanguard FTSE All-Wld ex-US SmCp Idx Inv | N.A. | N.A. | N.A. | N.A. |
Emerging Markets | ||||
Fund | 1yr. | 5yrs. | Expenses (as % of assets) | Minimum initial investment |
American Funds New World A | 58.8 | 12.6 | 1.01 | 250 |
T. Rowe Price Emerging Markets Stock | 96.6 | 14.6 | 1.24 | 2,500 |
Vanguard Emerging Mkts Stock Idx | N.A. | N.A. | 0.39 | 3,000 |
Vanguard Emerging Markets ETF | N.A. | N.A. | N.A. | N.A. |
Bond | ||||
Fund | 1yr. | 5yrs. | Expenses (as % of assets) | Minimum initial investment |
American Funds American Hi Inc Tr A | 50.7 | 4.6 | 0.70 | 250 |
Dodge & Cox Income | 23.3 | 5.6 | 0.43 | 2,500 |
FPA New Income | 4.1 | 4.0 | 0.61 | 1,500 |
Harbor Bond Instl | 19.0 | 6.7 | 0.60 | 1,000 |
iShares Barclays TIPS Bond Fund | 0.0 | N.A. | 0.00 | N.A. |
T. Rowe Price International Bond | 23.5 | 5.1 | 0.81 | 2,500 |
Vanguard Inflation-Protected Secs | N.A. | N.A. | 0.25 | 3,000 |
Vanguard Interm-Term Tx-Ex | N.A. | 4.2 | 0.20 | 3,000 |
Vanguard Short-Term Bond Index | N.A. | 4.8 | 0.22 | 3,000 |
Vanguard Short-Term Bond ETF | 0.0 | N.A. | N.A. | N.A. |
Vanguard Total Bond Market Index | N.A. | N.A. | 0.22 | 3,000 |
Vanguard Total Bond Market ETF | 0.0 | N.A. | N.A. | N.A. |
Target Retirement | ||||
Fund | 1yr. | 5yrs. | Expenses (as % of assets) | Minimum initial investment |
T. Rowe Price Retirement 2005 | 26.9 | 4.3 | 0.60 | 2,500 |
Vanguard Target Retirement 2035 | 29.5 | 2.2 | 0.18 | 3,000 |
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. |
Overnight Avg Rate | Latest | Change | Last Week |
---|---|---|---|
30 yr fixed | 3.80% | 3.88% | |
15 yr fixed | 3.20% | 3.23% | |
5/1 ARM | 3.84% | 3.88% | |
30 yr refi | 3.82% | 3.93% | |
15 yr refi | 3.20% | 3.23% |
Today's featured rates:
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Treasuries | 1.73 | 0.00 | 0.12% |
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Ford Motor Co | 8.29 | 0.05 | 0.61% |
Advanced Micro Devic... | 54.59 | 0.70 | 1.30% |
Cisco Systems Inc | 47.49 | -2.44 | -4.89% |
General Electric Co | 13.00 | -0.16 | -1.22% |
Kraft Heinz Co | 27.84 | -2.20 | -7.32% |
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