CVY vs HBFBX Fund Comparison

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

Group Created with Sketch.

Minafi's Take on CVY vs HBFBX

Here's an in depth look at the differences between Invesco Zacks Multi-Asset Income ETF ($CVY) and Hennessy Balanced Fund Investor Class ($HBFBX).

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.

28% FI Score
  • cvy
  • ETF
  • Allocation
  • All-In-One

Invesco Zacks Multi-Asset Income ETF

Expenses: 0.97% (Better than 0% of similar funds)

This is a bad choice for a All-In-One Allocation fund. See why »

  • hbfbx
  • Mutual Fund
  • Allocation
  • All-In-One

Hennessy Balanced Fund Investor Class

Expenses: 1.88% (Better than 0% of similar funds)

This is a bad choice for a All-In-One Allocation fund. See why »

$CVY is classified as an ETF while $HBFBX 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 Allocation All-In-One 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.

CVY HBFBX
Market Score 2.4 /10 0.4 /10
Category Score 5.0 /10 5.0 /10
Total 7.4 5.4

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: $CVY

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, CVY has an expense ratio of 0.97% while HBFBX has an expense ratio of 1.88%. In this case, both of these funds have a similar fee.

Winner: $CVY (barely)

Fund Size Comparison

Both CVY and HBFBX have a similar number of assets under management. CVY has 124 Million in assets under management, while HBFBX has 12.6 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? CVY or HBFBX?

Since both of these funds are Allocation All-In-One 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 CVY a score of 28 and HBFBX a score of 9.

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.

$CVY

Invesco Zacks Multi-Asset Income ETF

28

Read More
Ratings
Rating Type Rating
Diversification Score 0 /10
Expense Ratio Score 5 /10
Expense Rating 0 /10
Market Score 2 /10
Category Score 5 /10
Overview
Overview Details
Fund Type ETF
Inception Date Sep-21-2006
Exchange NYSE ARCA
Expense Ratio 0.970%
Net Assets 124 Million
Yield 4.57%
Holdings
Description Info
Market Allocation
Category All-In-One
Sectors
  • Basic Materials 5.06%
  • Communication Services 5.39%
  • Consumer Cyclicals 1.52%
  • Consumer Defensive 0.00%
  • Energy 18.54%
  • Financial Services 45.07%
  • Healthcare 1.72%
  • Industrials 6.58%
  • Real Estate 12.67%
  • Technology 0.77%
  • Utilities 2.68%
Regions
  • Africa/Middle East 0.04%
  • Asia Developed 0.99%
  • Asia Emerging 0.14%
  • Australasia 0.07%
  • Europe Developed 6.27%
  • Europe Emerging 0.95%
  • Japan 1.24%
  • Latin America 3.34%
  • North America 83.93%
  • United Kingdom 3.04%

$HBFBX

Hennessy Balanced Fund Investor Class

9

Read More
Ratings
Rating Type Rating
Expense Ratio Score 1 /10
Expense Rating 0 /10
Market Score 0 /10
Category Score 5 /10
Overview
Overview Details
Fund Type Mutual Fund
Inception Date Mar-8-1996
Exchange NMFQS
Expense Ratio 1.880%
Net Assets 12.6 Million
Yield 1.09%
Holdings
Description Info
Market Allocation
Category All-In-One
Sectors
  • Basic Materials 6.39%
  • Communication Services 12.20%
  • Consumer Cyclical 0.00%
  • Consumer Defensive 10.62%
  • Energy 14.89%
  • Financial Services 1.36%
  • Healthcare 23.98%
  • Industrials 17.57%
  • Real Estate 0.00%
  • Technology 12.99%
  • Utilities 0.00%
Regions
  • North America 100.00%

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