Hi all,
My older brother is thinking of putting his $8K Roth IRA contributions into First Trust Portfolios "Target Focus Four" unit investment trust (a local financial advisor is recommending it as "a new investment opportunity):
http://www.ftportfolios.com/retail/dp/dpsummary.aspx?fundid=4255
I don't know.....sounds like a dumb idea to me.....there is a 1% initial sales charge, a 1.45% deferred sales charge, a 0.5% "creation and development fee", 0.29% "organization costs", 0.215% annual operating expenses, blah blah blah.....
Sounds like alot of fees to me (compared to my Vanguard index funds and other low expense funds that I use in my 401k).
Anybody have experience with or an opinion about First Trust Portfoilios or this "Target Focus Four" fund?
Why would somebody want to invest in a unit investment trust (UIT) rather than a regular mutual fund, index fund or ETF?
Also, this UIT terminates in 15 months.....is this "normal" for a UIT?
I don't know, this whole thing seems overly complicated and like it's designed to extract lots of fees from investors in a short amount of time.....I don't want to see my brother get the shaft.....
Opinions? Thanks
My older brother is thinking of putting his $8K Roth IRA contributions into First Trust Portfolios "Target Focus Four" unit investment trust (a local financial advisor is recommending it as "a new investment opportunity):
http://www.ftportfolios.com/retail/dp/dpsummary.aspx?fundid=4255
I don't know.....sounds like a dumb idea to me.....there is a 1% initial sales charge, a 1.45% deferred sales charge, a 0.5% "creation and development fee", 0.29% "organization costs", 0.215% annual operating expenses, blah blah blah.....
Sounds like alot of fees to me (compared to my Vanguard index funds and other low expense funds that I use in my 401k).
Anybody have experience with or an opinion about First Trust Portfoilios or this "Target Focus Four" fund?
Why would somebody want to invest in a unit investment trust (UIT) rather than a regular mutual fund, index fund or ETF?
Also, this UIT terminates in 15 months.....is this "normal" for a UIT?
I don't know, this whole thing seems overly complicated and like it's designed to extract lots of fees from investors in a short amount of time.....I don't want to see my brother get the shaft.....
Opinions? Thanks