Exchange traded funds (ETFs) follow an index, so they tend to be safe from stock pickers’ slim pickings like Fidelity Investments’ Magellan Fund (FMAGX). Magellan was a benchmark of the mutual fund industry, and now it has a 6.3% return compared to the Dow’s 16.4% year to date. The fund manager, Harry Lange, has tried to turn the fund around, but has been too heavy in poor performing sectors and underweight in the performing sectors.
Magellan investors must be wondering if following an index would have been better, reports Justin Lahart for The Wall Street Journal. One ETF doing well is The Diamonds Trust (DIA) which is up 14% year to date.
For full disclosure, Tom Lydon’s clients own DIA.
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