ACWV vs FPA Fund Comparison

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

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Minafi's Take on ACWV vs FPA

Here's an in depth look at the differences between iShares Edge MSCI Min Vol Global ETF ($ACWV) and First Trust Asia Pacific Ex-Japan AlphaDEX Fund ($FPA).

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.

73% FI Score
  • acwv
  • ETF
  • Allocation
  • Total World

iShares Edge MSCI Min Vol Global ETF

Expenses: 0.20% (Better than 1% of similar funds)

This is an OK choice for a Total World Allocation fund. See why »

36% FI Score
  • fpa
  • ETF
  • International Stocks
  • Asia/Pacific ex-Japan Stock

First Trust Asia Pacific Ex-Japan AlphaDEX Fund

Expenses: 0.80% (Better than 1% of similar funds)

This is a bad choice for a Asia/Pacific ex-Japan Stock International Stocks fund. See why »

Both $ACWV and $FPA are categorized as ETFs. ETFs have an added bonus over mutual funds of being more widely available. Mutual funds are often limited to only the issuing investment brokerage. Since these are both ETFs, you may be able to find these at a wider number of investment apps and websites.

The biggest disadvantage of ETFs is that some platforms only allow you to purchase ETFs in whole shares. So if an ETF is going for $75, you may need to invest in increments of $75. Most 401(k)'s allow for investing down to the penny, but you'll want to verify your platform allows for "fractional ETF Shares".

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.

ACWV FPA
Market Score 9.4 /10 2.0 /10
Category Score 5.0 /10 5.0 /10
Total 14.4 7.0

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.

For each fund we've created a "diversification score" – a metric to indicate how closely each funds asset allocation matches it's benchmark. For example, an S&P 500 fund would have a diversification score of 10 if it's fully in line with the actual S&P 500.

The diversification score for ACWV is 2.5/10, while FPA has a diversification score of 0.0/10.

In other words, ACWV more closely matches it's benchmark.

Winner: $ACWV

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, ACWV has an expense ratio of 0.20% while FPA has an expense ratio of 0.80%.

Winner: $ACWV

Fund Size Comparison

One place these two funds differ is in their total assets under management. This 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.

In the case of these two funds, ACWV is a large fund with 5.64 Billion in assets under management. FPA, on the other hand, is a small fund with 13.8 Million in assets under management.

Winner: $ACWV, iShares Edge MSCI Min Vol Global ETF

Which Should You Choose? ACWV or FPA?

Comparing these two funds isn't an apples to apples comparison. ACWV is a Allocation Total World fund, while FPA is a International Stocks Asia/Pacific ex-Japan Stock 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 ACWV a score of 73 and FPA a score of 36.

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

$ACWV

iShares Edge MSCI Min Vol Global ETF

73

Read More
Ratings
Rating Type Rating
Diversification Score 3 /10
Expense Ratio Score 10 /10
Expense Rating 8 /10
Market Score 9 /10
Category Score 5 /10
Overview
Overview Details
Fund Type ETF
Inception Date Oct-18-2011
Exchange BATS
Expense Ratio 0.200%
Net Assets 5.64 Billion
Yield 2.75%
Holdings
Description Info
Market Allocation
Category Total World
Sectors
  • Basic Materials 5.50%
  • Communication Services 12.82%
  • Consumer Cyclicals 5.51%
  • Consumer Defensive 14.30%
  • Energy 0.52%
  • Financial Services 16.03%
  • Healthcare 11.66%
  • Industrials 9.26%
  • Real Estate 3.69%
  • Technology 12.25%
  • Utilities 8.46%
Regions
  • Africa/Middle East 1.91%
  • Asia Developed 7.99%
  • Asia Emerging 7.31%
  • Australasia 0.59%
  • Europe Developed 10.65%
  • Europe Emerging 0.44%
  • Japan 12.10%
  • Latin America 0.22%
  • North America 57.67%
  • United Kingdom 1.13%

$FPA

First Trust Asia Pacific Ex-Japan AlphaDEX Fund

36

Read More
Ratings
Rating Type Rating
Diversification Score 0 /10
Expense Ratio Score 7 /10
Expense Rating 2 /10
Market Score 2 /10
Category Score 5 /10
Overview
Overview Details
Fund Type ETF
Inception Date Apr-18-2011
Exchange NASDAQ
Expense Ratio 0.800%
Net Assets 13.8 Million
Yield 4.22%
Holdings
Description Info
Market International Stocks
Category Asia/Pacific ex-Japan Stock
Sectors
  • Basic Materials 12.63%
  • Communication Services 9.33%
  • Consumer Cyclicals 10.50%
  • Consumer Defensive 10.29%
  • Energy 3.62%
  • Financial Services 2.78%
  • Healthcare 14.94%
  • Industrials 13.02%
  • Real Estate 15.46%
  • Technology 6.20%
  • Utilities 1.23%
Regions
  • Asia Developed 61.46%
  • Asia Emerging 8.66%
  • Australasia 29.11%
  • North America 0.76%

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