HDMV vs TPIIX Fund Comparison

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

Group Created with Sketch.

Minafi's Take on HDMV vs TPIIX

Here's an in depth look at the differences between First Trust Horizon Managed Volatility Developed International ETF ($HDMV) and Timothy Plan International Fund Class I ($TPIIX).

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.

44% FI Score
  • hdmv
  • ETF
  • International Stocks
  • Large Blend

First Trust Horizon Managed Volatility Developed International ETF

Expenses: 0.80% (Better than 1% of similar funds)

This is a bad choice for a Large Blend International Stocks fund. See why »

24% FI Score
  • tpiix
  • Mutual Fund
  • International Stocks
  • Large Blend

Timothy Plan International Fund Class I

Expenses: 1.42% (Better than 0% of similar funds)

This is a bad choice for a Large Blend International Stocks fund. See why »

$HDMV is classified as an ETF while $TPIIX 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 International Stocks Large Blend 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.

HDMV TPIIX
Market Score 3.0 /10 1.9 /10
Category Score 10.0 /10 10.0 /10
Total 13.0 11.9

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: $HDMV

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, HDMV has an expense ratio of 0.80% while TPIIX has an expense ratio of 1.42%.

Winner: $HDMV

Fund Size Comparison

Both HDMV and TPIIX have a similar number of assets under management. HDMV has 146 Million in assets under management, while TPIIX has 77.6 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? HDMV or TPIIX?

Since both of these funds are International Stocks Large Blend 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 HDMV a score of 44 and TPIIX a score of 24.

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.

$HDMV

First Trust Horizon Managed Volatility Developed International ETF

44

Read More
Ratings
Rating Type Rating
Diversification Score 0 /10
Expense Ratio Score 6 /10
Expense Rating 2 /10
Market Score 3 /10
Category Score 10 /10
Overview
Overview Details
Fund Type ETF
Inception Date Aug-24-2016
Exchange NYSE ARCA
Expense Ratio 0.800%
Net Assets 146 Million
Yield 4.11%
Holdings
Description Info
Market International Stocks
Category Large Blend
Sectors
  • Basic Materials 4.54%
  • Communication Services 7.30%
  • Consumer Cyclicals 4.47%
  • Consumer Defensive 21.46%
  • Energy 1.37%
  • Financial Services 14.69%
  • Healthcare 9.66%
  • Industrials 13.13%
  • Real Estate 10.98%
  • Technology 1.83%
  • Utilities 10.57%
Regions
  • Africa/Middle East 0.91%
  • Asia Developed 21.76%
  • Asia Emerging 1.78%
  • Australasia 5.86%
  • Europe Developed 31.65%
  • Japan 29.40%
  • United Kingdom 8.64%

$TPIIX

Timothy Plan International Fund Class I

24

Read More
Ratings
Rating Type Rating
Expense Ratio Score 2 /10
Expense Rating 0 /10
Market Score 2 /10
Category Score 10 /10
Overview
Overview Details
Fund Type Mutual Fund
Inception Date May-3-2007
Exchange NMFQS
Expense Ratio 1.420%
Net Assets 77.6 Million
Yield 1.19%
Holdings
Description Info
Market International Stocks
Category Large Blend
Sectors
  • Basic Materials 2.87%
  • Communication Services 9.30%
  • Consumer Cyclical 5.66%
  • Consumer Defensive 9.36%
  • Energy 3.60%
  • Financial Services 20.81%
  • Healthcare 9.92%
  • Industrials 19.49%
  • Real Estate 0.00%
  • Technology 15.17%
  • Utilities 3.82%
Regions
  • Africa/Middle East 3.10%
  • Asia Developed 14.78%
  • Asia Emerging 6.89%
  • Europe Developed 37.09%
  • Europe Emerging 2.41%
  • Japan 16.90%
  • Latin America 1.60%
  • North America 9.11%
  • United Kingdom 8.13%

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