LIGRX vs XMLV Fund Comparison

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

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Minafi's Take on LIGRX vs XMLV

Here's an in depth look at the differences between Loomis Sayles Investment Grade Bond Fund Class A ($LIGRX) and Invesco S&P MidCap Low Volatility ETF ($XMLV).

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.

62% FI Score
  • ligrx
  • Mutual Fund
  • Bond
  • Total US Bond Market

Loomis Sayles Investment Grade Bond Fund Class A

Expenses: 0.77% (Better than 1% of similar funds)

This is an OK choice for a Total US Bond Market Bond fund. See why »

72% FI Score
  • xmlv
  • ETF
  • US Stocks
  • Mid-Cap Value

Invesco S&P MidCap Low Volatility ETF

Expenses: 0.25% (Better than 1% of similar funds)

This is an OK choice for a Mid-Cap Value US Stocks fund. See why »

$LIGRX is classified as a Mutual Fund while $XMLV 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.

LIGRX XMLV
Market Score 8.2 /10 7.9 /10
Category Score 10.0 /10 5.0 /10
Total 18.2 12.9

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: $LIGRX

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, LIGRX has an expense ratio of 0.77% while XMLV has an expense ratio of 0.25%.

Winner: $XMLV

Fund Size Comparison

Both LIGRX and XMLV have a similar number of assets under management. LIGRX has 5.46 Billion in assets under management, while XMLV has 2.41 Billion.

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? LIGRX or XMLV?

Comparing these two funds isn't an apples to apples comparison. LIGRX is a Bond Total US Bond Market fund, while XMLV is a US Stocks Mid-Cap Value 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 LIGRX a score of 62 and XMLV a score of 72.

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

$LIGRX

Loomis Sayles Investment Grade Bond Fund Class A

62

Read More
Ratings
Rating Type Rating
Expense Ratio Score 5 /10
Expense Rating 2 /10
Market Score 8 /10
Category Score 10 /10
Overview
Overview Details
Fund Type Mutual Fund
Inception Date Dec-31-1996
Exchange NMFQS
Expense Ratio 0.770%
Net Assets 5.46 Billion
Yield 3.09%
Holdings
Description Info
Market Bond
Category Total US Bond Market
Sectors
  • Cash & Equivalents 5.73%
  • Corporate 60.54%
  • Government 10.51%
  • Municipal 0.15%
  • Other -0.26%
  • Securitized 23.29%

$XMLV

Invesco S&P MidCap Low Volatility ETF

72

Read More
Ratings
Rating Type Rating
Diversification Score 5 /10
Expense Ratio Score 9 /10
Expense Rating 8 /10
Market Score 8 /10
Category Score 5 /10
Overview
Overview Details
Fund Type ETF
Inception Date Feb-12-2013
Exchange NYSE ARCA
Expense Ratio 0.250%
Net Assets 2.41 Billion
Yield 3.11%
Holdings
Description Info
Market US Stocks
Category Mid-Cap Value
Sectors
  • Basic Materials 5.19%
  • Communication Services 3.47%
  • Consumer Cyclicals 9.57%
  • Consumer Defensive 11.56%
  • Energy 1.33%
  • Financial Services 16.66%
  • Healthcare 12.21%
  • Industrials 18.14%
  • Real Estate 10.99%
  • Technology 6.16%
  • Utilities 4.72%
Regions
  • North America 100.00%

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