MEXX vs WFQAX Fund Comparison

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

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Minafi's Take on MEXX vs WFQAX

Here's an in depth look at the differences between Direxion Daily MSCI Mexico Bull 3X Shares Direxion Daily MSCI Mexico Bull 3($MEXX) and Wells Fargo Target 2050 Fund - Class A($WFQAX).

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.

  • mexx
  • ETF
  • Alternative
  • Leveraged Equities

Direxion Daily MSCI Mexico Bull 3X Shares Direxion Daily MSCI Mexico Bull 3

Expenses: 1.21% (Better than 1% of similar funds)

This is a bad choice for a Leveraged Equities Alternative fund. See why »

  • wfqax
  • Mutual Fund
  • Allocation
  • Target-Date

Wells Fargo Target 2050 Fund - Class A

Expenses: 0.63% (Better than 0% of similar funds)

This is a bad choice for a Target-Date Allocation fund. See why »

$MEXX is classified as an ETF while $WFQAX 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 available 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.

MEXXWFQAX
Market Score 2.6 /10 3.9 /10
Category Score 0.0 /10 5.0 /10
Total2.68.9

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: $WFQAX

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, MEXX has an expense ratio of 1.21% while WFQAX has an expense ratio of 0.63%.

Winner: $WFQAX

Fund Size Comparison

Both MEXX and WFQAX have a similar number of assets under management. MEXX has 8.3 Million in assets under management, while WFQAX has 194 Million.

Minafi categorizes both of these funds as small 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? MEXX or WFQAX?

Comparing these two funds isn't an apples to apples comparison. MEXX is a AlternativeLeveraged Equities fund, while WFQAX is a AllocationTarget-Date 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 MEXX a score of 22 and WFQAX a score of 37.

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

$MEXX

Direxion Daily MSCI Mexico Bull 3X Shares Direxion Daily MSCI Mexico Bull 3

22

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Ratings
Rating TypeRating
Expense Ratio Score5/10
Expense Rating0/10
Market Score3/10
Category Score0/10
Overview
OverviewDetails
Fund TypeETF
ExchangeNYSE ARCA
Expense Ratio1.210%
Net Assets8.3 Million
Yield6.23%
Holdings
DescriptionInfo
MarketAlternative
CategoryLeveraged Equities
Sectors
  • Basic Materials 11.13%
  • Communication Services 21.24%
  • Consumer Cyclicals 2.68%
  • Consumer Defensive 28.43%
  • Energy 0.00%
  • Financial Services 14.83%
  • Healthcare 0.63%
  • Industrials 12.27%
  • Real Estate 7.15%
  • Technology 0.00%
  • Utilities 1.65%
Regions
  • Latin America 100.00%

$WFQAX

Wells Fargo Target 2050 Fund - Class A

37

Read More
Ratings
Rating TypeRating
Expense Ratio Score3/10
Expense Rating4/10
Market Score4/10
Category Score5/10
Overview
OverviewDetails
Fund TypeMutual Fund
Inception DateJun-29-2007
ExchangeNMFQS
Expense Ratio0.630%
Net Assets194 Million
Yield2.01%
Holdings
DescriptionInfo
MarketAllocation
CategoryTarget-Date
Sectors
  • Basic Materials 5.10%
  • Communication Services 8.16%
  • Consumer Cyclical 8.57%
  • Consumer Defensive 10.66%
  • Energy 3.93%
  • Financial Services 15.42%
  • Healthcare 15.29%
  • Industrials 13.04%
  • Real Estate 5.61%
  • Technology 9.63%
  • Utilities 4.58%
Regions
  • Africa/Middle East 0.26%
  • Asia Developed 3.72%
  • Asia Emerging 4.42%
  • Australasia 2.49%
  • Europe Developed 11.25%
  • Europe Emerging 0.68%
  • Japan 7.41%
  • Latin America 0.90%
  • North America 64.01%
  • United Kingdom 4.87%

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