The FSA Spy market buzz – 22 September 2023
AllianceBernstein’s new large cap ETF, The SEC gets ‘investment term’ serious, small-cap managers outperform, Dumb Money is coming, Franklin Templeton’s divis, Pictet on building and much more.
HEAD-TO-HEAD: Axa vs Vanguard
FSA compares two US equity funds: the Axa World Funds Framlington American Growth Fund and the Vanguard S&P 500 ETF.
Conclusion
Steve Kelly has a successful long-term track record managing the Axa fund, although “investors should be fully aware that he has a growth bias and has traditionally performed better when these stocks are in favour,” said McDermott.
“It is the main reason he underperformed in 2016 when the so-called “taper tantrum” [when there were indications the US Federal Reserve intended to reduce its quantitative easing asset purchases] led to a strong rally by value stocks,” he added.
Given its nature it is no surprise to see that the Vanguard ETF has mirrored performance of the S&P 500, so it is good option for cautious investors.
“But, if you think growth is going to be an important factor going forward, the Axa fund is likely to be the one for you to consider,” said McDermott.
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