FGD vs TLH Fund Comparison

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

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Minafi's Take on FGD vs TLH

Here's an in depth look at the differences between First Trust Dow Jones Global Select Dividend Index Fund($FGD) and iShares 10-20 Year Treasury Bond ETF($TLH).

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.

  • fgd
  • ETF
  • International Stocks
  • Large Value

First Trust Dow Jones Global Select Dividend Index Fund

Expenses: 0.59% (Better than 1% of similar funds)

This is an OK choice for a Large Value International Stocks fund. See why »

  • tlh
  • ETF
  • Bond
  • Government Bond

iShares 10-20 Year Treasury Bond ETF

Expenses: 0.15% (Better than 1% of similar funds)

This is an OK choice for a Government Bond Bond fund. See why »

Both $FGD and $TLH 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.

FGDTLH
Market Score 5.6 /10 6.1 /10
Category Score 8.0 /10 8.0 /10
Total13.614.1

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: $TLH

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, FGD has an expense ratio of 0.59% while TLH has an expense ratio of 0.15%.

Winner: $TLH

Fund Size Comparison

Both FGD and TLH have a similar number of assets under management. FGD has 380 Million in assets under management, while TLH has 1.09 Billion.

Minafi categorizes both of these funds as medium 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? FGD or TLH?

Comparing these two funds isn't an apples to apples comparison. FGD is a International StocksLarge Value fund, while TLH is a BondGovernment Bond 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 FGD a score of 59 and TLH a score of 75.

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

$FGD

First Trust Dow Jones Global Select Dividend Index Fund

59

Read More
Ratings
Rating TypeRating
Diversification Score0/10
Expense Ratio Score7/10
Expense Rating4/10
Market Score6/10
Category Score8/10
Overview
OverviewDetails
Fund TypeETF
Inception DateNov-21-2007
ExchangeNYSE ARCA
Expense Ratio0.590%
Net Assets380 Million
Yield9.38%
Holdings
DescriptionInfo
MarketInternational Stocks
CategoryLarge Value
Sectors
  • Basic Materials 4.22%
  • Communication Services 14.71%
  • Consumer Cyclicals 13.58%
  • Consumer Defensive 2.51%
  • Energy 4.31%
  • Financial Services 44.75%
  • Healthcare 0.00%
  • Industrials 2.83%
  • Real Estate 0.00%
  • Technology 5.05%
  • Utilities 8.02%
Regions
  • Asia Developed 4.85%
  • Australasia 20.38%
  • Europe Developed 40.90%
  • Japan 1.67%
  • North America 19.75%
  • United Kingdom 12.45%

$TLH

iShares 10-20 Year Treasury Bond ETF

75

Read More
Ratings
Rating TypeRating
Expense Ratio Score9/10
Expense Rating9/10
Market Score6/10
Category Score8/10
Overview
OverviewDetails
Fund TypeETF
Inception DateJul-1-2010
ExchangeNYSE ARCA
Expense Ratio0.150%
Net Assets1.09 Billion
Yield1.86%
Holdings
DescriptionInfo
MarketBond
CategoryGovernment Bond
Sectors
  • Basic Materials 0.00%
  • Communication Services 0.00%
  • Consumer Cyclicals 0.00%
  • Consumer Defensive 0.00%
  • Energy 0.00%
  • Financial Services 0.00%
  • Healthcare 0.00%
  • Industrials 0.00%
  • Real Estate 0.00%
  • Technology 0.00%
  • Utilities 0.00%

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