FMKFX vs TFIV Fund Comparison

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

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Minafi's Take on FMKFX vs TFIV

Here's an in depth look at the differences between Fidelity® Magellan K6 Fund ($FMKFX) and Global X TargetIncome 5 ETF ($TFIV).

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.

56% FI Score
  • fmkfx
  • Mutual Fund
  • US Stocks
  • Large Growth

Fidelity® Magellan K6 Fund

Expenses: 0.45% (Better than 1% of similar funds)

This is an OK choice for a Large Growth US Stocks fund. See why »

33% FI Score
  • tfiv
  • ETF
  • Allocation
  • Total World

Global X TargetIncome 5 ETF

Expenses: 0.77% (Better than 1% of similar funds)

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

$FMKFX is classified as a Mutual Fund while $TFIV is classified as an ETF. 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

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.

FMKFX TFIV
Market Score 2.5 /10 0.3 /10
Category Score 8.0 /10 5.0 /10
Total 10.5 5.3

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: $FMKFX

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, FMKFX has an expense ratio of 0.45% while TFIV has an expense ratio of 0.77%.

Winner: $FMKFX

Fund Size Comparison

Both FMKFX and TFIV have a similar number of assets under management. FMKFX has 160 Million in assets under management, while TFIV has 3.33 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? FMKFX or TFIV?

Comparing these two funds isn't an apples to apples comparison. FMKFX is a US Stocks Large Growth fund, while TFIV is a Allocation Total World 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 FMKFX a score of 56 and TFIV a score of 33.

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

$FMKFX

Fidelity® Magellan K6 Fund

56

Read More
Ratings
Rating Type Rating
Expense Ratio Score 9 /10
Expense Rating 6 /10
Market Score 3 /10
Category Score 8 /10
Overview
Overview Details
Fund Type Mutual Fund
Inception Date Jun-13-2019
Exchange NMFQS
Expense Ratio 0.450%
Net Assets 160 Million
Yield 0.00%
Holdings
Description Info
Market US Stocks
Category Large Growth
Sectors
  • Basic Materials 3.23%
  • Communication Services 9.79%
  • Consumer Cyclical 8.09%
  • Consumer Defensive 6.58%
  • Energy 0.00%
  • Financial Services 11.47%
  • Healthcare 13.87%
  • Industrials 10.84%
  • Real Estate 6.33%
  • Technology 27.59%
  • Utilities 2.22%
Regions
  • North America 98.85%
  • United Kingdom 1.15%

$TFIV

Global X TargetIncome 5 ETF

33

Read More
Ratings
Rating Type Rating
Diversification Score 0 /10
Expense Ratio Score 8 /10
Expense Rating 2 /10
Market Score 0 /10
Category Score 5 /10
Overview
Overview Details
Fund Type ETF
Exchange BATS
Expense Ratio 0.770%
Net Assets 3.33 Million
Yield 6.06%
Holdings
Description Info
Market Allocation
Category Total World
Sectors
  • Basic Materials 10.06%
  • Communication Services 7.83%
  • Consumer Cyclicals 3.07%
  • Consumer Defensive 10.13%
  • Energy 15.28%
  • Financial Services 8.90%
  • Healthcare 0.69%
  • Industrials 7.94%
  • Real Estate 22.51%
  • Technology 0.00%
  • Utilities 13.60%
Regions
  • Africa/Middle East 7.15%
  • Asia Developed 3.22%
  • Asia Emerging 10.98%
  • Australasia 6.16%
  • Europe Developed 2.61%
  • Europe Emerging 7.22%
  • Latin America 5.69%
  • North America 53.37%
  • United Kingdom 3.61%

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