BLCN vs WSTAX Fund Comparison

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

Group Created with Sketch.

Minafi's Take on BLCN vs WSTAX

Here's an in depth look at the differences between Reality Shares Nasdaq NexGen Economy ETF ($BLCN) and Ivy Science And Technology Fund Class A ($WSTAX).

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.

33% FI Score
  • blcn
  • ETF
  • Sector Equity
  • Technology

Reality Shares Nasdaq NexGen Economy ETF

Expenses: 0.68% (Better than 1% of similar funds)

This is a bad choice for a Technology Sector Equity fund. See why »

44% FI Score
  • wstax
  • Mutual Fund
  • Sector Equity
  • Technology

Ivy Science And Technology Fund Class A

Expenses: 1.20% (Better than 0% of similar funds)

This is a bad choice for a Technology Sector Equity fund. See why »

$BLCN is classified as an ETF while $WSTAX 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

Both of these funds are Sector Equity Technology funds – which means they're likely both investing in about the same investments behind the scenes.

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.

BLCN WSTAX
Market Score 2.8 /10 9.6 /10
Category Score 0.0 /10 0.0 /10
Total 2.8 9.6

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: $WSTAX

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, BLCN has an expense ratio of 0.68% while WSTAX has an expense ratio of 1.20%.

Winner: $BLCN

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, BLCN is a small fund with 56.7 Million in assets under management. WSTAX, on the other hand, is a large fund with 7.37 Billion in assets under management.

Winner: $WSTAX, Ivy Science And Technology Fund Class A

Which Should You Choose? BLCN or WSTAX?

Since both of these funds are Sector Equity Technology funds, you'll most likely only need to invest in one of these funds – not both. Running both of these funds through Minafi's FI Score algorithm, gives BLCN a score of 33 and WSTAX a score of 44.

Since both of these have a similar FI Score, the difference between these two if minimal. A higher FI Score doesn't mean future growth will be higher, but it does mean that it better fits criteria for a good fund. Neither of these funds has an FI Score above 90 – which is a red flag. I'd look into more funds to find one with a higher FI Score.

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

$BLCN

Reality Shares Nasdaq NexGen Economy ETF

33

Read More
Ratings
Rating Type Rating
Diversification Score 0 /10
Expense Ratio Score 6 /10
Expense Rating 3 /10
Market Score 3 /10
Category Score 0 /10
Overview
Overview Details
Fund Type ETF
Exchange NASDAQ
Expense Ratio 0.680%
Net Assets 56.7 Million
Yield 1.41%
Holdings
Description Info
Market Sector Equity
Category Technology
Sectors
  • Basic Materials 0.00%
  • Communication Services 11.74%
  • Consumer Cyclicals 11.94%
  • Consumer Defensive 0.96%
  • Energy 0.00%
  • Financial Services 31.78%
  • Healthcare 0.00%
  • Industrials 4.25%
  • Real Estate 0.00%
  • Technology 39.32%
  • Utilities 0.00%
Regions
  • Africa/Middle East 1.37%
  • Asia Developed 2.69%
  • Asia Emerging 15.50%
  • Australasia 1.35%
  • Europe Developed 11.25%
  • Japan 14.81%
  • North America 51.54%
  • United Kingdom 1.51%

$WSTAX

Ivy Science And Technology Fund Class A

44

Read More
Ratings
Rating Type Rating
Expense Ratio Score 3 /10
Expense Rating 0 /10
Market Score 10 /10
Category Score 0 /10
Overview
Overview Details
Fund Type Mutual Fund
Inception Date Jul-31-1997
Exchange NMFQS
Expense Ratio 1.200%
Net Assets 7.37 Billion
Yield 0.00%
Holdings
Description Info
Market Sector Equity
Category Technology
Sectors
  • Basic Materials 0.31%
  • Communication Services 11.71%
  • Consumer Cyclical 8.71%
  • Consumer Defensive 0.00%
  • Energy 0.00%
  • Financial Services 0.00%
  • Healthcare 16.17%
  • Industrials 3.54%
  • Real Estate 2.16%
  • Technology 57.40%
  • Utilities 0.00%
Regions
  • Africa/Middle East 0.05%
  • Asia Developed 2.62%
  • Asia Emerging 5.54%
  • Europe Developed 6.16%
  • North America 85.62%

Adam says: Learn how to confidently invest for retirement!

Join the Minafi Investor Bootcamp to see how.

This 10-course bootcamp starts at only $10 for everything!

Minafi - The intersection of FI, minimalism & mindfulness.

Don't miss out on new posts, courses, interactive articles and more!

Join & Get Your First Course Free

© 2024   Adam Fortuna

Site Map
Triangle Graduation Cap Angle Down Book regular Phone laptop regular fire regular fire regular search regular Acorn duotone Seedling duotone thumbs down duo