MSXAX vs SKYY Fund Comparison

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

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Minafi's Take on MSXAX vs SKYY

Here's an in depth look at the differences between MainStay MacKay S&P 500 Index Fund Class A($MSXAX) and First Trust Cloud Computing ETF($SKYY).

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.

  • msxax
  • Mutual Fund
  • US Stocks
  • Large Blend

MainStay MacKay S&P 500 Index Fund Class A

Expenses: 0.54% (Better than 1% of similar funds)

This is an OK choice for a Large Blend US Stocks fund. See why »

  • skyy
  • ETF
  • Sector Equity
  • Technology

First Trust Cloud Computing ETF

Expenses: 0.60% (Better than 1% of similar funds)

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

$MSXAX is classified as a Mutual Fund while $SKYY 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.

MSXAXSKYY
Market Score 5.7 /10 9.0 /10
Category Score 10.0 /10 0.0 /10
Total15.79.0

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: $MSXAX

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, MSXAX has an expense ratio of 0.54% while SKYY has an expense ratio of 0.60%. In this case, both of these funds have a similar fee.

Winner: $MSXAX (barely)

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, MSXAX is a medium fund with 976 Million in assets under management. SKYY, on the other hand, is a large fund with 4.07 Billion in assets under management.

Winner: $SKYY, First Trust Cloud Computing ETF

Which Should You Choose? MSXAX or SKYY?

Comparing these two funds isn't an apples to apples comparison. MSXAX is a US StocksLarge Blend fund, while SKYY is a Sector EquityTechnology 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 MSXAX a score of 63 and SKYY a score of 57.

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

$MSXAX

MainStay MacKay S&P 500 Index Fund Class A

63

Read More
Ratings
Rating TypeRating
Expense Ratio Score7/10
Expense Rating5/10
Market Score6/10
Category Score10/10
Overview
OverviewDetails
Fund TypeMutual Fund
Inception DateJan-2-1991
ExchangeNMFQS
Expense Ratio0.540%
Net Assets976 Million
Yield1.85%
Holdings
DescriptionInfo
MarketUS Stocks
CategoryLarge Blend
Sectors
  • Basic Materials 2.16%
  • Communication Services 10.84%
  • Consumer Cyclical 10.27%
  • Consumer Defensive 7.76%
  • Energy 3.05%
  • Financial Services 13.46%
  • Healthcare 15.49%
  • Industrials 8.41%
  • Real Estate 2.91%
  • Technology 22.37%
  • Utilities 3.28%
Regions
  • Asia Developed 0.05%
  • Europe Developed 0.51%
  • Europe Emerging 0.02%
  • North America 98.82%
  • United Kingdom 0.61%

$SKYY

First Trust Cloud Computing ETF

57

Read More
Ratings
Rating TypeRating
Diversification Score4/10
Expense Ratio Score7/10
Expense Rating4/10
Market Score9/10
Category Score0/10
Overview
OverviewDetails
Fund TypeETF
Inception DateJul-6-2011
ExchangeNASDAQ
Expense Ratio0.600%
Net Assets4.07 Billion
Yield0.35%
Holdings
DescriptionInfo
MarketSector Equity
CategoryTechnology
Sectors
  • Basic Materials 0.00%
  • Communication Services 10.39%
  • Consumer Cyclicals 7.92%
  • Consumer Defensive 0.00%
  • Energy 0.00%
  • Financial Services 0.00%
  • Healthcare 1.45%
  • Industrials 0.00%
  • Real Estate 0.00%
  • Technology 80.24%
  • Utilities 0.00%
Regions
  • Asia Emerging 3.08%
  • Europe Developed 1.25%
  • North America 95.68%

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