IERBX vs NGCRX Fund Comparison

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

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Minafi's Take on IERBX vs NGCRX

Here's an in depth look at the differences between Morgan Stanley Institutional Fund, Inc. International Real Estate Portfolio Class A($IERBX) and American Funds Retirement Income Portfolio - Conservative Class C($NGCRX).

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.

  • ierbx
  • Mutual Fund
  • Sector Equity
  • Real Estate

Morgan Stanley Institutional Fund, Inc. International Real Estate Portfolio Class A

Expenses: 1.37% (Better than 0% of similar funds)

This is a bad choice for a Real Estate Sector Equity fund. See why »

  • ngcrx
  • Mutual Fund
  • Allocation
  • All-In-One

American Funds Retirement Income Portfolio - Conservative Class C

Expenses: 1.08% (Better than 0% of similar funds)

This is a bad choice for a All-In-One Allocation fund. See why »

Both $IERBX and $NGCRX 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

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.

IERBXNGCRX
Market Score 0.6 /10 6.4 /10
Category Score 0.0 /10 5.0 /10
Total0.611.4

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: $NGCRX

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, IERBX has an expense ratio of 1.37% while NGCRX has an expense ratio of 1.08%. In this case, both of these funds have a similar fee.

Winner: $NGCRX (barely)

Fund Size Comparison

One place these two funds differ is in their total assets under management. This 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.

In the case of these two funds, IERBX is a small fund with 4.69 Million in assets under management. NGCRX, on the other hand, is a medium fund with 972 Million in assets under management.

Winner: $NGCRX, American Funds Retirement Income Portfolio - Conservative Class C

Which Should You Choose? IERBX or NGCRX?

Comparing these two funds isn't an apples to apples comparison. IERBX is a Sector EquityReal Estate fund, while NGCRX is a AllocationAll-In-One 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 IERBX a score of 11 and NGCRX a score of 40.

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

$IERBX

Morgan Stanley Institutional Fund, Inc. International Real Estate Portfolio Class A

11

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Ratings
Rating TypeRating
Expense Ratio Score4/10
Expense Rating0/10
Market Score1/10
Category Score0/10
Overview
OverviewDetails
Fund TypeMutual Fund
Inception DateOct-1-1997
ExchangeNMFQS
Expense Ratio1.370%
Net Assets4.69 Million
Yield0.95%
Holdings
DescriptionInfo
MarketSector Equity
CategoryReal Estate
Sectors
  • Basic Materials 0.00%
  • Communication Services 0.00%
  • Consumer Cyclical 0.00%
  • Consumer Defensive 0.00%
  • Energy 0.00%
  • Financial Services 0.00%
  • Healthcare 0.00%
  • Industrials 0.00%
  • Real Estate 100.00%
  • Technology 0.00%
  • Utilities 0.00%
Regions
  • Asia Developed 20.45%
  • Asia Emerging 5.15%
  • Australasia 4.30%
  • Europe Developed 30.48%
  • Japan 29.13%
  • United Kingdom 10.50%

$NGCRX

American Funds Retirement Income Portfolio - Conservative Class C

40

Read More
Ratings
Rating TypeRating
Expense Ratio Score4/10
Expense Rating0/10
Market Score6/10
Category Score5/10
Overview
OverviewDetails
Fund TypeMutual Fund
Inception DateAug-28-2015
ExchangeNMFQS
Expense Ratio1.080%
Net Assets972 Million
Yield1.94%
Holdings
DescriptionInfo
MarketAllocation
CategoryAll-In-One
Sectors
  • Basic Materials 3.16%
  • Communication Services 6.12%
  • Consumer Cyclical 4.79%
  • Consumer Defensive 12.89%
  • Energy 4.87%
  • Financial Services 14.12%
  • Healthcare 17.01%
  • Industrials 8.32%
  • Real Estate 7.26%
  • Technology 12.77%
  • Utilities 8.68%
Regions
  • Africa/Middle East 0.01%
  • Asia Developed 4.20%
  • Asia Emerging 1.55%
  • Australasia 0.46%
  • Europe Developed 12.15%
  • Europe Emerging 0.07%
  • Japan 1.42%
  • Latin America 0.87%
  • North America 69.57%
  • United Kingdom 9.70%

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