HSDIX vs SOUAX Fund Comparison

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

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Minafi's Take on HSDIX vs SOUAX

Here's an in depth look at the differences between Hartford Short Duration Fund Class I($HSDIX) and American Beacon Sound Point Floating Rate Income Fund A Class($SOUAX).

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.

  • hsdix
  • Mutual Fund
  • Bond
  • High Yield Bond

Hartford Short Duration Fund Class I

Expenses: 0.52% (Better than 1% of similar funds)

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

  • souax
  • Mutual Fund
  • Bond
  • High Yield Bond

American Beacon Sound Point Floating Rate Income Fund A Class

Expenses: 1.13% (Better than 0% of similar funds)

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

Both $HSDIX and $SOUAX 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.

HSDIXSOUAX
Market Score 7.5 /10 6.1 /10
Category Score 0.0 /10 0.0 /10
Total7.56.1

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: $HSDIX

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, HSDIX has an expense ratio of 0.52% while SOUAX has an expense ratio of 1.13%.

Winner: $HSDIX

Fund Size Comparison

Both HSDIX and SOUAX have a similar number of assets under management. HSDIX has 1.41 Billion in assets under management, while SOUAX has 633 Million.

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? HSDIX or SOUAX?

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 HSDIX a score of 60 and SOUAX a score of 31.

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.

$HSDIX

Hartford Short Duration Fund Class I

60

Read More
Ratings
Rating TypeRating
Expense Ratio Score8/10
Expense Rating5/10
Market Score7/10
Category Score0/10
Overview
OverviewDetails
Fund TypeMutual Fund
Inception DateOct-31-2002
ExchangeNMFQS
Expense Ratio0.520%
Net Assets1.41 Billion
Yield2.88%
Holdings
DescriptionInfo
MarketBond
CategoryHigh Yield Bond
Sectors
  • Agency MBS ARM 0.00%
  • Agency MBS CMO 6.34%
  • Agency MBS Pass-Through 1.08%
  • Asset-Backed 9.18%
  • Bank Loan 15.05%
  • Cash & Equivalents 4.03%
  • Commercial MBS 1.41%
  • Convertible 2.87%
  • Corporate 62.95%
  • Corporate Bond 45.03%
  • Covered Bond 0.09%
  • Government 7.69%
  • Municipal 0.48%
  • Non-Agency Residential MBS 6.74%
  • Non-U.S. Government 0.14%
  • Other 0.00%
  • Other Government Related 6.24%
  • Preferred 0.00%
  • Securitized 24.84%
  • U.S. Agency 0.34%
  • U.S. Treasury 0.97%
  • U.S. Treasury Inflation-Protected 0.00%

$SOUAX

American Beacon Sound Point Floating Rate Income Fund A Class

31

Read More
Ratings
Rating TypeRating
Expense Ratio Score3/10
Expense Rating0/10
Market Score6/10
Category Score0/10
Overview
OverviewDetails
Fund TypeMutual Fund
Inception DateDec-3-2012
ExchangeNMFQS
Expense Ratio1.130%
Net Assets633 Million
Yield7.18%
Holdings
DescriptionInfo
MarketBond
CategoryHigh Yield Bond
Sectors
  • Agency Mortgage-Backed 0.00%
  • Asset-Backed 0.00%
  • Bank Loan 87.78%
  • Cash & Equivalents 3.00%
  • Commercial MBS 0.00%
  • Convertible 0.00%
  • Corporate 96.79%
  • Corporate Bond 8.66%
  • Covered Bond 0.00%
  • Government 0.00%
  • Municipal 0.00%
  • Non-Agency Residential MBS 0.00%
  • Other 0.00%
  • Preferred 0.35%
  • Securitized 0.00%

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