2 Mutual Funds Are Now FundX ETFs

Issuer FundX repackaged a pair of actively managed mutual funds.

On Monday, FundX converted two of its actively managed mutual funds into exchange-traded fund wrappers. The FundX Upgrader Fund trading under the symbol FUNDX became the FundX ETF (XCOR), while the Aggressive Upgrader Fund (HOTFX) became the FundX Aggressive ETF (XNAV). 

While XCOR comes with an expense ratio of 1.63%, XNAV charges 1.52%. Both funds list on the NYSE Arca. 

FundX’s products invest in other ETFs or mutual funds, with an investment process that involves classifying the funds in its universe based on risk level and then selecting those offering “best-in-class performance” and selling them when their performance falters in order to rotate into the next top performers. The firm refers to the process on its website and in the fund prospectuses as “upgrading.” 

Both of the converted ETFs apply the firm’s investment approach with the goal of delivering a high level of long-term capital appreciation with no particular focus on income. The fund documents note that they have high portfolio turnover, with XCOR’s predecessor fund clocking in with a turnover rate of 104% in the most recent fiscal year, and XNAV recording a turnover rate of 184%. 

XCOR will invest mainly in ETFs that FundX identifies as “core equity underlying ETFs” that cover what the prospectus calls “well-established” domestic and foreign companies with the intention of exposing the fund to broad market leadership trends.  

Meanwhile, XNAV will invest primarily in what the firm classifies as sector and aggressive equity underlying ETFs, such that the portfolio can offer exposure to more concentrated ETFs as well as ETFs investing in small and midcap securities, less established companies and other asset classes such as commodities and real estate.  

Contact Heather Bell at [email protected]