AADR vs LCTRX Fund Comparison

A comparison between AADR and LCTRX based on their expense ratio, growth, holdings and how well they match their benchmark performance.

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Minafi's Take on AADR vs LCTRX

Here's an in depth look at the differences between AdvisorShares Dorsey Wright ADR ETF($AADR) and Leader Capital Leader Total Return Fund Investor Shares($LCTRX).

To start off, here's a look at the basics of each fund. Keep an eye on the FI Score. That's a custom score from 0 to 100 that we generate based on how good this fund is for the casual investor. Most investors only need a handful of total funds in their portfolio. The higher the score, the more likely this is one of those few. Score alone isn't enough! Keep reading on to see how different (or perhaps similar) these two funds are.

  • aadr
  • ETF
  • International Stocks
  • Large Growth

AdvisorShares Dorsey Wright ADR ETF

Expenses: 1.10% (Better than 1% of similar funds)

This is a bad choice for a Large Growth International Stocks fund. See why »

  • lctrx
  • Mutual Fund
  • Bond
  • Total US Bond Market

Leader Capital Leader Total Return Fund Investor Shares

Expenses: 2.42% (Better than 0% of similar funds)

This is a bad choice for a Total US Bond Market Bond fund. See why »

$AADR is classified as an ETF while $LCTRX is classified as a Mutual Fund. Even though one of these is a mutual fund and the other is an ETF, that doesn't matter too much for their holdings. Both ETFs and mutual funds are just containers to hold lots of investments inside of them.

The biggest differences between these two is where they may be offered. ETFs are more widely availble from a larger number of investment apps and websites. Mutual funds, on the other hand, are generally offered by the platform they're issued by (Fidelity funds on Fidelity, Vanguard funds on Vanguard). Usually 401(k)'s will offer both ETFs and Mutual Funds. If you're investing outside of a 401(k), I'd recommend you verify the fees associated with ETF and mutual fund transactions. Some platforms charge an additional fee to purchase a mutual fund.

To learn more about the difference between these two, you can read about the difference between ETFs and Mutual Funds.

When evaluating a fund, the first things I look at are:

  • What it invests in
  • How much it charges in fees
  • How large the fund is

Let's look into these criteria one by one and see if either of these funds stands out.

Fund Holdings Comparison

Minafi's FI Score algorithm takes into account the category and market. The more niche a fund is, the lower the score. This doesn't mean it's a worse fund, but it does mean you should stop and make sure this a fund you need to diversify your portfolio.

AADRLCTRX
Market Score 1.4 /10 0.3 /10
Category Score 8.0 /10 10.0 /10
Total9.410.3

A score of 10 means this is a solid market and category that almost every investor will want to have investments in. The lower the score, the more specific the investment. These scores are based on when most investors would add these funds to their portfolio. A score of 10 means that this fund (or one like it) belongs in a three-fund portfolio. The lower the score, the farther down in your portfolio a fund would go.

Winner: $LCTRX

Fee Comparison

Fees are one of the biggest killers of portfolio growth. The difference between a 2% fee and a 0.04% fee over 30 years can result in your portfolio having half the total value!

If you're just getting started investing and learning how fees impact your portfolio, I'd encourage you to read through my free investment course (specifically '2.2 - All About Fees') where I go over all the different types of fees you can be charged and how to lower them.

For these two funds, AADR has an expense ratio of 1.10% while LCTRX has an expense ratio of 2.42%.

Winner: $AADR

Fund Size Comparison

Both AADR and LCTRX have a similar number of assets under management. AADR has 72.5 Million in assets under management, while LCTRX has 12.8 Million.

Minafi categorizes both of these funds as small funds. Fund size is a good indication of how many other investors trust this fund. A large fund by itself doesn't mean it's a good fund, but it is one thing to consider when figuring out how to choose the right fund.

Winner: tie

Which Should You Choose? AADR or LCTRX?

Comparing these two funds isn't an apples to apples comparison. AADR is a International StocksLarge Growth fund, while LCTRX is a BondTotal US Bond Market fund.

If you're aiming to build a diversified, low-fee, tax-optimized portfolio you likely won't be choosing between these two funds since they're different enough.

Running both of these funds through Minafi's FI Score algorithm, gives AADR a score of 23 and LCTRX a score of 14.

Winner: Neither, I'd research more funds if you're looking to invest for retirement.

$AADR

AdvisorShares Dorsey Wright ADR ETF

23

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Ratings
Rating TypeRating
Diversification Score0/10
Expense Ratio Score5/10
Expense Rating0/10
Market Score1/10
Category Score8/10
Overview
OverviewDetails
Fund TypeETF
Inception DateJul-20-2010
ExchangeNYSE ARCA
Expense Ratio1.100%
Net Assets72.5 Million
Yield0.64%
Holdings
DescriptionInfo
MarketInternational Stocks
CategoryLarge Growth
Sectors
  • Basic Materials 10.82%
  • Communication Services 6.14%
  • Consumer Cyclicals 10.84%
  • Consumer Defensive 9.06%
  • Energy 0.00%
  • Financial Services 0.00%
  • Healthcare 30.38%
  • Industrials 11.31%
  • Real Estate 0.00%
  • Technology 17.30%
  • Utilities 4.15%
Regions
  • Africa/Middle East 16.57%
  • Asia Developed 1.93%
  • Asia Emerging 20.96%
  • Europe Developed 38.30%
  • Europe Emerging 2.09%
  • Latin America 5.76%
  • North America 4.81%
  • United Kingdom 9.59%

$LCTRX

Leader Capital Leader Total Return Fund Investor Shares

14

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Ratings
Rating TypeRating
Expense Ratio Score0/10
Expense Rating0/10
Market Score0/10
Category Score10/10
Overview
OverviewDetails
Fund TypeMutual Fund
Inception DateJul-30-2010
ExchangeNMFQS
Expense Ratio2.420%
Net Assets12.8 Million
Yield3.06%
Holdings
DescriptionInfo
MarketBond
CategoryTotal US Bond Market
Sectors
  • Cash & Equivalents 28.32%
  • Corporate 67.80%
  • Government 0.00%
  • Municipal 0.00%
  • Other 0.00%
  • Securitized 0.00%

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