MTUM vs SLMTX Fund Comparison

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

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Minafi's Take on MTUM vs SLMTX

Here's an in depth look at the differences between iShares Edge MSCI USA Momentum Factor ETF ($MTUM) and Virtus Seix U.S. Mortgage Fund Class I ($SLMTX).

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.

74% FI Score
  • mtum
  • ETF
  • US Stocks
  • Large Growth

iShares Edge MSCI USA Momentum Factor ETF

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

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

30% FI Score
  • slmtx
  • Mutual Fund
  • Bond
  • Government Bond

Virtus Seix U.S. Mortgage Fund Class I

Expenses: 0.70% (Better than 1% of similar funds)

This is a bad choice for a Government Bond Bond fund. See why »

$MTUM is classified as an ETF while $SLMTX 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.

MTUM SLMTX
Market Score 8.8 /10 0.2 /10
Category Score 8.0 /10 8.0 /10
Total 16.8 8.2

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: $MTUM

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, MTUM has an expense ratio of 0.15% while SLMTX has an expense ratio of 0.70%.

Winner: $MTUM

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, MTUM is a large fund with 9.42 Billion in assets under management. SLMTX, on the other hand, is a small fund with 21 Million in assets under management.

Winner: $MTUM, iShares Edge MSCI USA Momentum Factor ETF

Which Should You Choose? MTUM or SLMTX?

Comparing these two funds isn't an apples to apples comparison. MTUM is a US Stocks Large Growth fund, while SLMTX is a Bond Government Bond 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 MTUM a score of 74 and SLMTX a score of 30.

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

$MTUM

iShares Edge MSCI USA Momentum Factor ETF

74

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Ratings
Rating Type Rating
Diversification Score 2 /10
Expense Ratio Score 10 /10
Expense Rating 9 /10
Market Score 9 /10
Category Score 8 /10
Overview
Overview Details
Fund Type ETF
Inception Date Apr-16-2013
Exchange BATS
Expense Ratio 0.150%
Net Assets 9.42 Billion
Yield 1.45%
Holdings
Description Info
Market US Stocks
Category Large Growth
Sectors
  • Basic Materials 1.20%
  • Communication Services 11.55%
  • Consumer Cyclicals 9.56%
  • Consumer Defensive 4.92%
  • Energy 0.00%
  • Financial Services 3.53%
  • Healthcare 31.65%
  • Industrials 1.18%
  • Real Estate 4.72%
  • Technology 30.23%
  • Utilities 1.44%
Regions
  • North America 100.00%

$SLMTX

Virtus Seix U.S. Mortgage Fund Class I

30

Read More
Ratings
Rating Type Rating
Expense Ratio Score 5 /10
Expense Rating 3 /10
Market Score 0 /10
Category Score 8 /10
Overview
Overview Details
Fund Type Mutual Fund
Inception Date Jun-6-1994
Exchange NMFQS
Expense Ratio 0.700%
Net Assets 21 Million
Yield 1.64%
Holdings
Description Info
Market Bond
Category Government Bond
Sectors
  • Agency MBS ARM 0.00%
  • Agency MBS CMO 0.00%
  • Agency MBS Pass-Through 92.48%
  • Asset-Backed 0.00%
  • Cash & Equivalents 7.52%
  • Commercial MBS 0.00%
  • Corporate 0.00%
  • Covered Bond 0.00%
  • Government 0.00%
  • Municipal 0.00%
  • Non-Agency Residential MBS 0.00%
  • Non-U.S. Government 0.00%
  • Other 0.00%
  • Other Government Related 0.00%
  • Securitized 92.48%
  • U.S. Agency 0.00%
  • U.S. Treasury 0.00%
  • U.S. Treasury Inflation-Protected 0.00%

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