LICAX vs RWO Fund Comparison

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

GroupCreated with Sketch.

Minafi's Take on LICAX vs RWO

Here's an in depth look at the differences between Lord Abbett International Equity Fund Class A($LICAX) and SPDR Dow Jones Global Real Estate ETF($RWO).

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.

  • licax
  • Mutual Fund
  • International Stocks
  • Large Blend

Lord Abbett International Equity Fund Class A

Expenses: 1.17% (Better than 0% of similar funds)

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

  • rwo
  • ETF
  • Sector Equity
  • Real Estate

SPDR Dow Jones Global Real Estate ETF

Expenses: 0.50% (Better than 1% of similar funds)

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

$LICAX is classified as a Mutual Fund while $RWO 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.

LICAXRWO
Market Score 4.3 /10 9.1 /10
Category Score 10.0 /10 0.0 /10
Total14.39.1

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: $LICAX

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, LICAX has an expense ratio of 1.17% while RWO has an expense ratio of 0.50%.

Winner: $RWO

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, LICAX is a small fund with 342 Million in assets under management. RWO, on the other hand, is a large fund with 1.63 Billion in assets under management.

Winner: $RWO, SPDR Dow Jones Global Real Estate ETF

Which Should You Choose? LICAX or RWO?

Comparing these two funds isn't an apples to apples comparison. LICAX is a International StocksLarge Blend fund, while RWO is a Sector EquityReal Estate 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 LICAX a score of 36 and RWO a score of 73.

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

$LICAX

Lord Abbett International Equity Fund Class A

36

Read More
Ratings
Rating TypeRating
Expense Ratio Score3/10
Expense Rating0/10
Market Score4/10
Category Score10/10
Overview
OverviewDetails
Fund TypeMutual Fund
Inception DateDec-31-2003
ExchangeNMFQS
Expense Ratio1.170%
Net Assets342 Million
Yield1.67%
Holdings
DescriptionInfo
MarketInternational Stocks
CategoryLarge Blend
Sectors
  • Basic Materials 7.65%
  • Communication Services 5.36%
  • Consumer Cyclical 9.85%
  • Consumer Defensive 9.29%
  • Energy 3.72%
  • Financial Services 17.71%
  • Healthcare 11.73%
  • Industrials 14.01%
  • Real Estate 3.06%
  • Technology 15.44%
  • Utilities 2.18%
Regions
  • Asia Developed 10.58%
  • Asia Emerging 13.69%
  • Australasia 3.67%
  • Europe Developed 40.00%
  • Europe Emerging 1.26%
  • Japan 15.22%
  • Latin America 0.53%
  • North America 6.74%
  • United Kingdom 8.30%

$RWO

SPDR Dow Jones Global Real Estate ETF

73

Read More
Ratings
Rating TypeRating
Diversification Score9/10
Expense Ratio Score9/10
Expense Rating5/10
Market Score9/10
Category Score0/10
Overview
OverviewDetails
Fund TypeETF
Inception DateMay-7-2008
ExchangeNYSE ARCA
Expense Ratio0.500%
Net Assets1.63 Billion
Yield5.39%
Holdings
DescriptionInfo
MarketSector Equity
CategoryReal Estate
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 0.00%
  • Real Estate 100.00%
  • Technology 0.00%
  • Utilities 0.00%
Regions
  • Africa/Middle East 0.38%
  • Asia Developed 6.93%
  • Asia Emerging 0.96%
  • Australasia 4.53%
  • Europe Developed 9.80%
  • Europe Emerging 0.25%
  • Japan 13.71%
  • Latin America 0.58%
  • North America 58.90%
  • United Kingdom 3.96%

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 use cookies & emails to ensure the best experience possible. Check out our privacy policy for more.

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