HFLAX vs IYT Fund Comparison

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

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Minafi's Take on HFLAX vs IYT

Here's an in depth look at the differences between Hartford Floating Rate Fund Class A($HFLAX) and iShares Transportation Average ETF($IYT).

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.

  • hflax
  • Mutual Fund
  • Bond
  • High Yield Bond

Hartford Floating Rate Fund Class A

Expenses: 1.00% (Better than 0% of similar funds)

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

  • iyt
  • ETF
  • Sector Equity
  • Industrials

iShares Transportation Average ETF

Expenses: 0.42% (Better than 1% of similar funds)

This is an OK choice for a Industrials Sector Equity fund. See why »

$HFLAX is classified as a Mutual Fund while $IYT 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.

HFLAXIYT
Market Score 8.1 /10 7.5 /10
Category Score 0.0 /10 0.0 /10
Total8.17.5

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: $HFLAX

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, HFLAX has an expense ratio of 1.00% while IYT has an expense ratio of 0.42%.

Winner: $IYT

Fund Size Comparison

Both HFLAX and IYT have a similar number of assets under management. HFLAX has 2.02 Billion in assets under management, while IYT has 518 Million.

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? HFLAX or IYT?

Comparing these two funds isn't an apples to apples comparison. HFLAX is a BondHigh Yield Bond fund, while IYT is a Sector EquityIndustrials 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 HFLAX a score of 41 and IYT a score of 64.

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

$HFLAX

Hartford Floating Rate Fund Class A

41

Read More
Ratings
Rating TypeRating
Expense Ratio Score4/10
Expense Rating0/10
Market Score8/10
Category Score0/10
Overview
OverviewDetails
Fund TypeMutual Fund
Inception DateApr-29-2005
ExchangeNMFQS
Expense Ratio1.000%
Net Assets2.02 Billion
Yield4.22%
Holdings
DescriptionInfo
MarketBond
CategoryHigh Yield Bond
Sectors
  • Agency Mortgage-Backed 0.00%
  • Asset-Backed 0.00%
  • Bank Loan 79.33%
  • Cash & Equivalents 13.43%
  • Commercial MBS 0.00%
  • Convertible 0.06%
  • Corporate 86.19%
  • Corporate Bond 6.79%
  • Covered Bond 0.00%
  • Government 0.00%
  • Municipal 0.00%
  • Non-Agency Residential MBS 0.00%
  • Other 0.00%
  • Preferred 0.00%
  • Securitized 0.00%

$IYT

iShares Transportation Average ETF

64

Read More
Ratings
Rating TypeRating
Diversification Score8/10
Expense Ratio Score7/10
Expense Rating6/10
Market Score8/10
Category Score0/10
Overview
OverviewDetails
Fund TypeETF
Inception DateOct-6-2003
ExchangeBATS
Expense Ratio0.420%
Net Assets518 Million
Yield1.74%
Holdings
DescriptionInfo
MarketSector Equity
CategoryIndustrials
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 100.00%
  • Real Estate 0.00%
  • Technology 0.00%
  • Utilities 0.00%
Regions
  • North America 100.00%

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