MSIPX vs VIGI Fund Comparison

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

Group Created with Sketch.

Minafi's Take on MSIPX vs VIGI

Here's an in depth look at the differences between Morgan Stanley Global Fixed Income Opportunities Fund Class C ($MSIPX) and Vanguard International Dividend Appreciation Index Fund ETF Shares ($VIGI).

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.

34% FI Score
  • msipx
  • Mutual Fund
  • Bond
  • Total US Bond Market

Morgan Stanley Global Fixed Income Opportunities Fund Class C

Expenses: 1.59% (Better than 0% of similar funds)

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

76% FI Score
  • vigi
  • ETF
  • International Stocks
  • Large Growth

Vanguard International Dividend Appreciation Index Fund ETF Shares

Expenses: 0.20% (Better than 1% of similar funds)

This is an OK choice for a Large Growth International Stocks fund. See why »

$MSIPX is classified as a Mutual Fund while $VIGI 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.

MSIPX VIGI
Market Score 5.0 /10 7.0 /10
Category Score 10.0 /10 8.0 /10
Total 15.0 15.0

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: $MSIPX

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, MSIPX has an expense ratio of 1.59% while VIGI has an expense ratio of 0.20%.

Winner: $VIGI

Fund Size Comparison

Both MSIPX and VIGI have a similar number of assets under management. MSIPX has 850 Million in assets under management, while VIGI has 2.22 Billion.

Minafi categorizes both of these funds as medium 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? MSIPX or VIGI?

Comparing these two funds isn't an apples to apples comparison. MSIPX is a Bond Total US Bond Market fund, while VIGI is a International Stocks Large Growth 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 MSIPX a score of 34 and VIGI a score of 76.

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

$MSIPX

Morgan Stanley Global Fixed Income Opportunities Fund Class C

34

Read More
Ratings
Rating Type Rating
Expense Ratio Score 1 /10
Expense Rating 0 /10
Market Score 5 /10
Category Score 10 /10
Overview
Overview Details
Fund Type Mutual Fund
Inception Date Jul-28-1997
Exchange NMFQS
Expense Ratio 1.590%
Net Assets 850 Million
Yield 2.88%
Holdings
Description Info
Market Bond
Category Total US Bond Market
Sectors
  • Agency MBS ARM 0.00%
  • Agency MBS CMO 1.42%
  • Agency MBS Pass-Through 0.01%
  • Asset-Backed 15.80%
  • Bank Loan 2.16%
  • Cash & Equivalents 11.32%
  • Commercial MBS 3.15%
  • Convertible 3.84%
  • Corporate 37.04%
  • Corporate Bond 31.04%
  • Covered Bond 0.00%
  • Government 24.34%
  • Municipal 0.00%
  • Non-Agency Residential MBS 3.58%
  • Non-U.S. Government 13.67%
  • Other 0.26%
  • Other Government Related 8.05%
  • Preferred 0.00%
  • Securitized 26.77%
  • U.S. Agency 0.00%
  • U.S. Treasury 2.62%
  • U.S. Treasury Inflation-Protected 0.00%

$VIGI

Vanguard International Dividend Appreciation Index Fund ETF Shares

76

Read More
Ratings
Rating Type Rating
Diversification Score 6 /10
Expense Ratio Score 10 /10
Expense Rating 8 /10
Market Score 7 /10
Category Score 8 /10
Overview
Overview Details
Fund Type ETF
Inception Date Feb-26-2016
Exchange NASDAQ
Expense Ratio 0.200%
Net Assets 2.22 Billion
Yield 2.17%
Holdings
Description Info
Market International Stocks
Category Large Growth
Sectors
  • Basic Materials 4.53%
  • Communication Services 10.80%
  • Consumer Cyclicals 10.72%
  • Consumer Defensive 16.26%
  • Energy 2.80%
  • Financial Services 11.89%
  • Healthcare 15.19%
  • Industrials 10.03%
  • Real Estate 1.56%
  • Technology 14.11%
  • Utilities 2.10%
Regions
  • Africa/Middle East 1.84%
  • Asia Developed 8.69%
  • Asia Emerging 18.17%
  • Australasia 2.51%
  • Europe Developed 41.43%
  • Europe Emerging 0.22%
  • Japan 10.83%
  • Latin America 0.97%
  • North America 8.08%
  • United Kingdom 7.26%

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 - 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