FRA vs HWDTX Fund Comparison

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

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Minafi's Take on FRA vs HWDTX

Here's an in depth look at the differences between BlackRock Floating Rate Income Strategies Fund Inc($FRA) and The Hartford World Bond Fund Class R5($HWDTX).

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.

  • fra
  • Mutual Fund
  • Bond
  • High Yield Bond

BlackRock Floating Rate Income Strategies Fund Inc

Expenses: 2.20% (Better than 0% of similar funds)

This is a bad choice for a High Yield Bond Bond fund. See why »

  • hwdtx
  • Mutual Fund
  • Bond
  • High Yield Bond

The Hartford World Bond Fund Class R5

Expenses: 0.76% (Better than 1% of similar funds)

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

Both $FRA and $HWDTX 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

Both of these funds are BondHigh Yield Bond 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.

FRAHWDTX
Market Score 10.0 /10 8.9 /10
Category Score 0.0 /10 0.0 /10
Total10.08.9

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: $FRA

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, FRA has an expense ratio of 2.20% while HWDTX has an expense ratio of 0.76%.

Winner: $HWDTX

Fund Size Comparison

Both FRA and HWDTX have a similar number of assets under management. FRA has in assets under management, while HWDTX has 4.87 Billion.

Minafi categorizes both of these funds as large 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? FRA or HWDTX?

Since both of these funds are BondHigh Yield Bond 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 FRA a score of 38 and HWDTX a score of 55.

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.

$FRA

BlackRock Floating Rate Income Strategies Fund Inc

38

Read More
Ratings
Rating TypeRating
Expense Ratio Score1/10
Expense Rating0/10
Market Score10/10
Category Score0/10
Overview
OverviewDetails
Fund TypeMutual Fund
Inception DateOct-31-2003
ExchangeNYSE
Expense Ratio2.200%
Net Assets
Yield0.00%
Holdings
DescriptionInfo
MarketBond
CategoryHigh Yield Bond
Sectors
  • Agency Mortgage-Backed 0.00%
  • Asset-Backed 0.31%
  • Bank Loan 76.07%
  • Cash & Equivalents 0.00%
  • Commercial MBS 0.00%
  • Convertible 0.00%
  • Corporate 99.60%
  • Corporate Bond 23.53%
  • Covered Bond 0.00%
  • Government 0.00%
  • Municipal 0.00%
  • Non-Agency Residential MBS 0.00%
  • Other -0.03%
  • Preferred 0.00%
  • Securitized 0.31%

$HWDTX

The Hartford World Bond Fund Class R5

55

Read More
Ratings
Rating TypeRating
Expense Ratio Score7/10
Expense Rating2/10
Market Score9/10
Category Score0/10
Overview
OverviewDetails
Fund TypeMutual Fund
Inception DateMay-31-2011
ExchangeNMFQS
Expense Ratio0.760%
Net Assets4.87 Billion
Yield2.46%
Holdings
DescriptionInfo
MarketBond
CategoryHigh Yield Bond
Sectors
  • Agency Mortgage-Backed 3.40%
  • Agency/Quasi-Agency 8.15%
  • Asset-Backed 4.08%
  • Bank Loan 2.87%
  • Cash & Equivalents 18.79%
  • Commercial MBS 1.43%
  • Convertible 0.96%
  • Corporate 18.18%
  • Corporate Bond 14.34%
  • Covered Bond 0.00%
  • Government 44.19%
  • Municipal 0.00%
  • Non-Agency Residential MBS 0.49%
  • Other 0.23%
  • Other Government Related 1.05%
  • Preferred 0.01%
  • Securitized 9.40%
  • Supranational 0.00%

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