2019: Can I buy on TD Ameritrade Fidelity Contrafund and 500 Index Fund, Vanguard 500 Index Fund, American Funds Growth Fund of America and Fundamental Investors Fund?


Can I Buy Top Funds on TD Ameritrade?

TD Ameritrade offers thousands of mutual funds on their platform, including some of the top performing and largest funds. The growth of a mutual fund’s assets is often correlated with strong performance as consistent, good returns tend to attract new investors and retain more investors during market downturns. This article will provide a brief overview of 5 of the best performing mutual funds as ranked by five year returns, which coincidentally can all be purchased through TD Ameritrade.


#5 – Vanguard 500 Index Fund (VFINX)

The Vanguard 500 Index Fund posts a recent 5-year return of 15.01% and seeks to mirror the performance of large-cap stocks, as represented by the S&P 500 Index. It boasts more than $440 billion in assets under management and a low expense ratio of just 0.14%. Although it is supported on TD Ameritrade, it is currently closed to new investors. Managers can decide to close a fund to new investors if they feel excessive inflows are hampering their ability to manage the fund to its mandate.


TD Ameritrade Vanguard 500 Index Fund (VFINX)


#4 – American Funds Fundamental Investors Fund (ANCFX)

The American Funds Fundamental Investors Fund also posts a 5-year return just over 15% and has a dual mandate seeking both long-term capital growth and current income. It’s an actively managed fund that uses a fundamental approach to investing by seeking out U.S. and international companies that are under-valued, over-looked, and/or out of favor. It boasts almost $100 billion in assets and a relatively higher expense ratio of 0.60% given that it’s an active strategy. This fund is offered by TD Ameritrade; however it is also currently closed to new investors.


TD Ameritrade American Funds Fundamental Investors Fund (ANCFX)


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#3 – Fidelity 500 Index Fund (FXAIX)

Showing an impressive 5-year return of 15.07% is Fidelity’s 500 Index Fund, which seeks to mirror the total return of publically-traded common stocks in the U.S by investing at least 80% of its assets in stocks in the S&P 500 Index. The fund has assets under management around $164 billion and has one of the most attractive expense ratios we’ve seen at just 0.02%. This fund doesn’t require any minimum investments and doesn’t charge a load fee.


TD Ameritrade Fidelity 500 Index Fund (FXAIX)


#2 – American Funds Growth Fund of America (AGTHX)

Next on the list is American Funds’ Growth Fund of America, which has an impressive 5-year return of 16.15%. The actively managed fund focuses on capital appreciation by seeking out growth stocks, cyclical stocks and turnaround situations mostly in U.S. markets but also abroad, and charges a 0.62% expense ratio. The fund is offered through TD Ameritrade; however it is currently closed to new investors.


TD Ameritrade American Funds Growth Fund of America (AGTHX)


#1 – Fidelity’s Contrafund (FCNTX)

And finally, last but not least is Fidelity’s Contrafund, which boasts a whopping 5-year return of 16.85%. The actively managed fund invests in both value and growth stocks that management believes is not being fully valued by the markets. The fund currently has 90% of its assets invested in U.S. stocks with small exposures to developed and emerging markets. This mutual fund is offered on TD Ameritrade with no minimum investment requirement and no load.


TD Ameritrade Fidelity’s Contrafund (FCNTX)


Summary

All five of these mutual funds seem like worthwhile investments to consider, as evidenced by their strong recent performance and ability to attract significant assets. Even though all five of these funds have similar strong returns, they do employ different strategies and fees (index vs. active funds) so you should read through the prospectuses first to see which investment is best for your portfolio. Although some of them are not currently open to new investors, if they peak your interest you should still add them to your watchlist, as they could open back up to new inflows in the future.


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