Best WeBull mutual funds with top performance in 2020: Index funds, Target Retirement, US\International Small\Mid\Large cap funds.

Mutual Funds on WeBull

Webull is following in Robinhood’s footsteps and trying to capture some of the growing market share in the low-cost brokerage space. They offer commission-free trading and Webull accounts are free of maintenance fees and any required minimums. If you are looking to trade mutual funds, however, you will be disappointed to learn that Webull doesn’t offer these.

This article will cover an attractive alternative that gives you access to lots of mutual funds.

Ally Invest as Alternative to Webull

Not only is Ally Invest a great alternative to Webull because it offers mutual funds (more than 12,000 of them!), but in general a Ally Invest account offers a lot more investment options and features than Webull does. And trading on Ally Invest is also commission-free without any account minimums, so there really isn’t any reason not to try them out.

Ally Invest Promotion

Up to $3,500 cash bonus + $0 trades + transfer fee rebate.

Open Ally Invest Account

What Mutual Fund Families are Available on Ally Invest?

We think you’ll be pleasantly surprised by the selection of 100+ fund families on Ally Invest, which includes many popular brands like Fidelity, Vanguard, PIMCO, and T. Rowe Price. Within each fund family, you can pick from mutual funds with a plethora of strategies, distinguished by sector, country/region, market cap, bonds, commodities, and funds that act as complete allocation vehicles.

What are the Costs Associated with Mutual Funds?

Ally Invest charges only $9.95 commission for buying and selling mutual funds.

All mutual funds charge an annual expense ratio that is prorated to a daily amount and subtracted from the fund’s net assets. This is pays for operating expenses and pays the portfolio managers for their efforts. Expense ratios can vary quite a bit based on how active management is, the liquidity of the securities it holds, the size of the fund’s assets, etc. but are generally anywhere from 0.05% to several percentage points.

The other fee that is unique to mutual funds is called a load fee, and is essentially a purchase premium or sales charge that you pay up-front when you purchase shares in a mutual fund. This is generally anywhere from 1% to 5% and is collected by Ally Invest on behalf of the fund manager. Not all mutual funds charge these fees though, which is why it’s important to consider all the costs (load fees and expense ratio) when comparing different funds with similar strategies. Next we’ll take a look at a couple popular mutual funds you can buy through Ally Invest.

Vanguard Intermediate-Term Tax-Exempt Fund (VWIUX)

If you are looking to add some tax-advantaged fixed income holdings to your portfolio, a popular option that many investors are already using is Vanguard’s Intermediate-Term Tax-Exempt Fund, which boasts an impressive $65billion in AUM. The fund invests in municipal bonds with average maturities about 10 to 15 years out and currently has a distribution yield of 2.8%. Municipal bonds are favored by many investors because their coupon payments are generally exempt from federal taxes (and sometimes state taxes too). This fund has a low expense ratio of 0.09% and no load fee, but it does have a required minimum investment of $50,000, which is a bit on the higher side.

Fidelity Diversified International Fund (FDIVX)

Another popular fund offered through Ally Invest that many investors are using to add global equities exposure to their portfolio is Fidelity’s Diversified International Fund, which boasts more than $13billion in AUM. The fund invests in mostly mid to large-cap developed international equities but also holds about 12% emerging equities. There is no minimum investment requirement and no load fee, which is great, although its expense ratio is a bit on the higher side for an equity fund at 0.81%.

From a valuation perspective, it looks like this Fidelity fund has a slight value tilt when compared to its benchmark. This is portrayed through its lower P/E and P/B ratios.

WeBull Mutual Funds Summary

It’s too bad Webull doesn’t offer mutual funds, but honestly it shouldn’t put a damper on your investment plans because we find that Ally Invest, which offers a ton of mutual funds and has $0 commissions, is generally a better place to park your portfolio.

Open Ally Invest Account

Up to $3,500 cash bonus + $0 trades + transfer fee rebate.

Open Ally Invest Account


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