Fidelity Advisor Technology Fund Class A (FADTX)
If you’re a fan of technology, this tech company might be a good option for you—although it does carry some risks.
The owner of Azoury Financial in Troy, Michigan, Steve Azoury, says that he likes that the fund invests in names that most people are comfortable with, such as Microsoft and Apple, instead of new upstarts.
FADTX has a net expense ratio of 1.03%, with a 5.75% front-load and has returned more than 18% annually over the past decade.
Alpha Architect U.S. Quantitative Momentum ETF (QMOM)
Brian Bruggerman, a financial planning manager at Baker Boyer Bank, recommends QMOM which targets 10% of equities with the best total return over the last year.
“It would be the exciting part of somebody’s portfolio,” said Bruggerman. “Millennials still want some sort of stock-picking fix.”
QMOM has an expense ratio of 0.49% and has returned more than 10% annually over the past three years.
DoubleLine Shiller Enhanced CAPE (DSEEX)
Instead of being content with a target-date fund, Patrick McDowell, portfolio manager at Arbor Wealth Management in Destin, Florida, believes millennials should build their own set of funds for retirement.
He suggests DSEEX for this, which is known to invest in the cheapest sectors among large-cap stocks, and likes how its rule-based strategy because it doesn’t rely on stock-picking prowess.
DSEEX has a net expense ratio of 0.57% and has gained nearly 15% annually over the past five years.
Primecap Odyssey Growth Fund (POGRX)
This fund is developed for aggressive savers who don’t mind waiting out a little volatility. Christine Benz, Morningstar’s director of personal finance had this to say about it:
“Nearly all portfolios for investors in accumulation mode will be stock-heavy, because longer time horizons mean these investors have time to ride out bad markets.”
POGRX has a net expense ration of 0.64% and has returned nearly 14% annually over the past decade.
Fidelity Advisor New Insights Fund (FNIAX)
This is an all-purpose equity fund that includes holdings in consumer products companies, financial services firms and technology businesses. In other words, if one industry does poorly, the fund can remain resilient.
The fund is primarily based in the U.S. and has been able to benefit in domestic stocks since it first began in 2009. It returns more than 13% annually with a net expense ratio of 1.05%. However, it also charges a 5.75% front-load fee.
In summary, here are five of the best retirement funds for millennials:
— Fidelity Advisor Technology Fund Class A (FADTX)
— Alpha Architect U.S. Quantitative Momentum ETF (QMOM)
— DoubleLine Shiller Enhanced CAPE (DSEEX)
— Primecap Odyssey Growth Fund (POGRX)
— Fidelity Advisor New Insights Fund (FNIAX)
As millennials look into their best retirement options, they still have time on their side as an advantage. However, not all 401(k) funds are the same, and some are better suited for those who were born in the early 80s through the mid-90s.
Here’s a look at some of the top exchange-traded and mutual funds for millennial savings when looking to invest in retirement.