DGSMX vs MBOAX Fund Comparison

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

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Minafi's Take on DGSMX vs MBOAX

Here's an in depth look at the differences between DGHM V2000 SmallCap Value Fund Investor Class($DGSMX) and Madison Core Bond Fund Class A($MBOAX).

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.

  • dgsmx
  • Mutual Fund
  • US Stocks
  • Small Value

DGHM V2000 SmallCap Value Fund Investor Class

Expenses: 1.33% (Better than 0% of similar funds)

This is a bad choice for a Small Value US Stocks fund. See why »

  • mboax
  • Mutual Fund
  • Bond
  • Total US Bond Market

Madison Core Bond Fund Class A

Expenses: 0.90% (Better than 0% of similar funds)

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

Both $DGSMX and $MBOAX 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.

DGSMXMBOAX
Market Score 0.5 /10 1.6 /10
Category Score 5.0 /10 10.0 /10
Total5.511.6

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: $MBOAX

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, DGSMX has an expense ratio of 1.33% while MBOAX has an expense ratio of 0.90%. In this case, both of these funds have a similar fee.

Winner: $MBOAX (barely)

Fund Size Comparison

Both DGSMX and MBOAX have a similar number of assets under management. DGSMX has 5.11 Million in assets under management, while MBOAX has 120 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? DGSMX or MBOAX?

Comparing these two funds isn't an apples to apples comparison. DGSMX is a US StocksSmall Value fund, while MBOAX 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 DGSMX a score of 17 and MBOAX a score of 30.

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

$DGSMX

DGHM V2000 SmallCap Value Fund Investor Class

17

Read More
Ratings
Rating TypeRating
Expense Ratio Score4/10
Expense Rating0/10
Market Score1/10
Category Score5/10
Overview
OverviewDetails
Fund TypeMutual Fund
Inception DateJun-30-2010
ExchangeNMFQS
Expense Ratio1.330%
Net Assets5.11 Million
Yield0.48%
Holdings
DescriptionInfo
MarketUS Stocks
CategorySmall Value
Sectors
  • Basic Materials 2.11%
  • Communication Services 5.42%
  • Consumer Cyclical 10.63%
  • Consumer Defensive 0.95%
  • Energy 4.49%
  • Financial Services 23.46%
  • Healthcare 7.99%
  • Industrials 18.31%
  • Real Estate 12.75%
  • Technology 7.24%
  • Utilities 6.63%
Regions
  • North America 100.00%

$MBOAX

Madison Core Bond Fund Class A

30

Read More
Ratings
Rating TypeRating
Expense Ratio Score4/10
Expense Rating1/10
Market Score2/10
Category Score10/10
Overview
OverviewDetails
Fund TypeMutual Fund
Inception DateDec-29-1997
ExchangeNMFQS
Expense Ratio0.900%
Net Assets120 Million
Yield2.00%
Holdings
DescriptionInfo
MarketBond
CategoryTotal US Bond Market
Sectors
  • Agency MBS ARM 0.00%
  • Agency MBS CMO 5.83%
  • Agency MBS Pass-Through 23.79%
  • Asset-Backed 6.17%
  • Bank Loan 0.00%
  • Cash & Equivalents 2.13%
  • Commercial MBS 1.27%
  • Convertible 0.57%
  • Corporate 32.12%
  • Corporate Bond 31.55%
  • Covered Bond 0.00%
  • Government 24.57%
  • Municipal 1.12%
  • Non-Agency Residential MBS 3.00%
  • Non-U.S. Government 0.00%
  • Other 0.00%
  • Other Government Related 0.00%
  • Preferred 0.00%
  • Securitized 40.07%
  • U.S. Agency 0.00%
  • U.S. Treasury 23.93%
  • U.S. Treasury Inflation-Protected 0.64%

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