This tool enables you to find funds that are similar to one specified target fund. Similarity is based on both portfolio and performance. To use the tool, you must first either be in the mutual fund universe or in a mutual fund list. This tool is useful in a variety of situations, for example:
Perhaps you have a loss on a fund and you want to realize it for tax reasons. Similar Funds will help you find a similar replacement offering.
Perhaps you have found that perfect fund, but discover that it is closed to new investors or has a minimum investment requirement that puts it beyond your reach. Similar Funds will help you find a similar fund that meets your investment criteria.
Target Fund
A fund must meet certain criteria in order for it to be used as the Target Fund. A fund may not be used as a target fund if it:
Is a fund of funds
Has a Morningstar Category of Convertible, World Bond, Emerging Markets Bond, Bear Market, Bank Loan, Muni Single State Long, Muni Single State Interm, Muni Single State Short, or Stable Value
Has not reported a portfolio to Morningstar AND lacks a three-year return history
Belongs to either the taxable or municipal bond broad asset class AND lacks credit quality and duration statistics
Belongs to the municipal bond broad asset class AND has a 3 year tax cost ratio less than 0.15.
Does not have a Morningstar Category
Does not have a valid ticker
To find similar funds
In the left navigation pane, click Research.
In the left-hand column, click Open End Funds. The Open End Funds area opens.
Double-click United States Mutual Funds to open the universe. The mutual fund universe opens.
From the Tools menu, point to Find, then click Find Similar Funds. The Select Target Fund dialog box appears.
Select the target fund using name or ticker.
Click OK. The Similar Funds results page appears, listing the 50 funds that are most similar to the target fund. The list is ranked by the Overall Similarity Score.
Tips: From the Similar Funds list, you can:
Create a Fund vs. Fund report. Select two funds from the spreadsheet by clicking in the boxes to the left of the fund name. From the Action menu, point to Reports, then click Fund vs. Fund.
Graph any of the funds listed. Select funds. From the Action menu, point to Graphs, then click the name of the graph you want to create.
Save any of the funds to a list, or add them to an existing list. Select funds. From the Action bar, point to Save As, then click Investment List, or point to Add To, then click Investment List.