The Blackrock fund receives a three-star Morningstar rating, while the Fidelity fund has four-star rating. Both products have an analyst rating of Silver.
Morningstar’s star rating looks at historical risk-adjusted performance and the analyst rating is based on forward-looking analysis.
“It is a pretty close race because we both have high conviction in both funds and both have lived up to their promises,” Claus said.
“However, I have a slight preference in the Fidelity fund as it has shown better downside capture compared to its peers.”
Claus added that Fidelity’s target income range of 4-5% is more realistic than Blackrock’s 5-6%.
“The Fidelity fund has a modest return target. You would think that a higher return is better, but given the difficult current market environment, a return target of 4-5% is enough, while a higher one is more difficult to achieve.”
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