AAII Home AAII Blog

October 2014 AAII MODEL PORTFOLIOS UPDATED: MODEL FUND PORTFOLIO SPECIAL ALERT

image_pdfimage_print

There are two changes to the Model Fund Portfolio. As of October 1, 2014, we removed FMI Common Stock (FMIMX) from the Model Fund Portfolio. Underperformance compared to its high fees was the primary driver to sell, along with the risk associated with the fund operating as a closed fund.

We are replacing FMIMX with First Trust US IPO (FPX). First Trust US IPO is an exchange-traded fund that tracks an index of larger U.S. initial public offerings. It modifies the capital weighting so that very large capitalized companies do not dominate.

If you are following the Model Fund Portfolio, then all existing holdings, including the new holding, should be equally weighted (nine if you own the closed fund CHTTX, or eight if you don’t). You can accomplish this easily by selling FMI Common Stock fund and putting the proceeds into the First Trust US IPO fund.

Read more »

 

Leave a Reply

Your email address will not be published. Required fields are marked *