LQD vs UMBWX Fund Comparison

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

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Minafi's Take on LQD vs UMBWX

Here's an in depth look at the differences between iShares iBoxx $ Investment Grade Corporate Bond ETF ($LQD) and Carillon Scout International Fund Class I ($UMBWX).

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.

82% FI Score
  • lqd
  • ETF
  • Bond
  • High Yield Bond

iShares iBoxx $ Investment Grade Corporate Bond ETF

Expenses: 0.15% (Better than 1% of similar funds)

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

41% FI Score
  • umbwx
  • Mutual Fund
  • International Stocks
  • Large Blend

Carillon Scout International Fund Class I

Expenses: 1.10% (Better than 0% of similar funds)

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

$LQD is classified as an ETF while $UMBWX is classified as a Mutual Fund. 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.

LQD UMBWX
Market Score 10.0 /10 5.1 /10
Category Score 0.0 /10 10.0 /10
Total 10.0 15.1

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: $UMBWX

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, LQD has an expense ratio of 0.15% while UMBWX has an expense ratio of 1.10%.

Winner: $LQD

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, LQD is a large fund with 49.5 Billion in assets under management. UMBWX, on the other hand, is a medium fund with 528 Million in assets under management.

Winner: $LQD, iShares iBoxx $ Investment Grade Corporate Bond ETF

Which Should You Choose? LQD or UMBWX?

Comparing these two funds isn't an apples to apples comparison. LQD is a Bond High Yield Bond fund, while UMBWX is a International Stocks Large Blend 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 LQD a score of 82 and UMBWX a score of 41.

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

$LQD

iShares iBoxx $ Investment Grade Corporate Bond ETF

82

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Ratings
Rating Type Rating
Expense Ratio Score 10 /10
Expense Rating 9 /10
Market Score 10 /10
Category Score 0 /10
Overview
Overview Details
Fund Type ETF
Inception Date Jul-1-2010
Exchange NYSE ARCA
Expense Ratio 0.150%
Net Assets 49.5 Billion
Yield 3.13%
Holdings
Description Info
Market Bond
Category High Yield Bond
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 0.00%
  • Technology 0.00%
  • Utilities 0.00%

$UMBWX

Carillon Scout International Fund Class I

41

Read More
Ratings
Rating Type Rating
Expense Ratio Score 4 /10
Expense Rating 0 /10
Market Score 5 /10
Category Score 10 /10
Overview
Overview Details
Fund Type Mutual Fund
Inception Date Sep-14-1993
Exchange NMFQS
Expense Ratio 1.100%
Net Assets 528 Million
Yield 2.72%
Holdings
Description Info
Market International Stocks
Category Large Blend
Sectors
  • Basic Materials 7.60%
  • Communication Services 2.75%
  • Consumer Cyclical 8.04%
  • Consumer Defensive 17.28%
  • Energy 6.54%
  • Financial Services 22.19%
  • Healthcare 14.59%
  • Industrials 14.47%
  • Real Estate 0.00%
  • Technology 6.54%
  • Utilities 0.00%
Regions
  • Africa/Middle East 0.71%
  • Asia Developed 5.30%
  • Australasia 4.35%
  • Europe Developed 46.48%
  • Europe Emerging 1.61%
  • Japan 14.08%
  • Latin America 6.03%
  • North America 7.48%
  • United Kingdom 13.96%

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