ACVHX vs FNDSX Fund Comparison

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

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Minafi's Take on ACVHX vs FNDSX

Here's an in depth look at the differences between AC Alternatives® Market Neutral Value Fund C Class ($ACVHX) and Fidelity® Sustainability Bond Index Fund ($FNDSX).

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.

12% FI Score
  • acvhx
  • Mutual Fund
  • Alternatives
  • Neutral

AC Alternatives® Market Neutral Value Fund C Class

Expenses: 4.47% (Better than 0% of similar funds)

This is a bad choice for a Neutral Alternatives fund. See why »

65% FI Score
  • fndsx
  • Mutual Fund
  • Bond
  • Total US Bond Market

Fidelity® Sustainability Bond Index Fund

Expenses: 0.10% (Better than 1% of similar funds)

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

Both $ACVHX and $FNDSX are categorized as Mutual Funds. Mutual funds are often offered by 401(k) platforms and are essentially the same as ETFs. Mutual funds are generally offered by an investment platform – Fidelity has Fidelity mutual funds, Vanguard has Vanguard mutual funds. Mutual funds are ideal for retirement investing since you can invest any amount. That allows you to invest every last cent and benefit from the market.

The biggest disadvantage of mutual funds is that you're usually limited to the funds on your investment platform. If you're investing on Fidelity, you'll want to pick Fidelity mutual funds (or any ETF). Same with Vanguard. Some platforms offer mutual funds from other platforms, but they may charge a purchse or redemption fee. I'd recommend using the same platform as your funds – or stick to ETFs.

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.

ACVHX FNDSX
Market Score 3.1 /10 1.7 /10
Category Score 0.0 /10 10.0 /10
Total 3.1 11.7

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: $FNDSX

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, ACVHX has an expense ratio of 4.47% while FNDSX has an expense ratio of 0.10%.

Winner: $FNDSX

Fund Size Comparison

Both ACVHX and FNDSX have a similar number of assets under management. ACVHX has 68.7 Million in assets under management, while FNDSX has 121 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? ACVHX or FNDSX?

Comparing these two funds isn't an apples to apples comparison. ACVHX is a Alternatives Neutral fund, while FNDSX is a Bond Total 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 ACVHX a score of 12 and FNDSX a score of 65.

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

$ACVHX

AC Alternatives® Market Neutral Value Fund C Class

12

Read More
Ratings
Rating Type Rating
Expense Ratio Score 0 /10
Expense Rating 0 /10
Market Score 3 /10
Category Score 0 /10
Overview
Overview Details
Fund Type Mutual Fund
Inception Date Oct-31-2011
Exchange NMFQS
Expense Ratio 4.470%
Net Assets 68.7 Million
Yield 0.00%
Holdings
Description Info
Market Alternatives
Category Neutral
Sectors
  • Basic Materials 3.13%
  • Communication Services 8.07%
  • Consumer Cyclical 3.58%
  • Consumer Defensive 7.71%
  • Energy 10.64%
  • Financial Services 14.00%
  • Healthcare 9.84%
  • Industrials 26.01%
  • Real Estate 1.62%
  • Technology 3.57%
  • Utilities 11.82%
Regions
  • Asia Emerging 0.01%
  • Europe Developed 13.27%
  • Japan 0.46%
  • North America 76.83%
  • United Kingdom 9.42%

$FNDSX

Fidelity® Sustainability Bond Index Fund

65

Read More
Ratings
Rating Type Rating
Expense Ratio Score 10 /10
Expense Rating 9 /10
Market Score 2 /10
Category Score 10 /10
Overview
Overview Details
Fund Type Mutual Fund
Inception Date Jun-19-2018
Exchange NMFQS
Expense Ratio 0.100%
Net Assets 121 Million
Yield 2.37%
Holdings
Description Info
Market Bond
Category Total US Bond Market
Sectors
  • Agency MBS ARM 0.00%
  • Agency MBS CMO 0.53%
  • Agency MBS Pass-Through 23.29%
  • Asset-Backed 0.03%
  • Bank Loan 0.00%
  • Cash & Equivalents 4.68%
  • Commercial MBS 0.86%
  • Convertible 1.03%
  • Corporate 21.63%
  • Corporate Bond 20.59%
  • Covered Bond 0.00%
  • Government 48.84%
  • Municipal 0.15%
  • Non-Agency Residential MBS 0.00%
  • Non-U.S. Government 1.55%
  • Other 0.00%
  • Other Government Related 3.81%
  • Preferred 0.00%
  • Securitized 24.70%
  • U.S. Agency 1.26%
  • U.S. Treasury 42.22%
  • U.S. Treasury Inflation-Protected 0.00%

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