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Consumer Confidence Edges Near Pre-Pandemic High: 3 Fund Picks
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On Jun 29, the Conference Board reported that its Consumer Confidence Index climbed to 127.3 in June, beating the consensus estimate of 118.7 and higher than May’s upwardly revised figure of 120. Per the report, consumer confidence has hit the highest level since the virus outbreak last March.
The report states that though expectations of short-term inflation have increased, consumers are confident and still have purchasing intentions. Consumers planning to purchase homes, automobiles and major appliances have also increased in June along with plans to spend more on leisure and vacations.
The consumer confidence index has risen for six straight months now. The latest report indicates that consumer spending will continue to support economic growth and help it to rebound in the short term. In fact, households are spending generously and businesses are hiring rapidly to fill-in vacancies created due to the pandemic-led downsizing.
In fact, the percentage of people who said that jobs are plentiful rose to the highest level since 2000, up from 48.5% in May to 54.4% this month. And the sub-index that defines Americans’ view for the next six months rose to 107 from 100.9 in May and is nearly back to pre-COVID levels.
Americans are gearing up to spend generously this summer, especially on big-ticket items like electronic, automobile and housing. They are also ready to pack their bags and hit the road. The main factor driving this optimism is rapid vaccination, which has majorly boosted people’s confidence to step out. Recently, Moderna reported that its COVID-19 vaccine showed promise in a lab study against the Delta variant first identified in India. Hence, vaccinated individuals can now travel without a worry.
Our Top Mutual Fund Choices
Given such positive consumer confidence data, we have shortlisted three funds that carry a Zacks Mutual Fund Rank #1 (Strong Buy) or 2 (Buy) and are poised to grow. In addition, the minimum initial investment for these funds is within $5,000.
We expect these funds to outperform peers in the future. Remember, the goal of the Zacks Mutual Fund Rank is to guide investors to identify the potential winners and losers. Unlike most of the fund-rating systems, the Zacks Mutual Fund Rank is not just focused on the fund’s past performance but also on its likely future success.
The question here is why should investors consider mutual funds? Reduced transaction costs and diversification of portfolio without several commission charges that are associated with stock purchases are primarily the reasons for parking money in mutual funds (read more: Mutual Funds: Advantages, Disadvantages and How They Make Investors Money).
Fidelity Select Leisure Portfolio (FDLSX - Free Report) fund aims at capital appreciation. This non-diversified fund normally invests majority of assets in the common stocks of companies that are mostly engaged in the design, production or distribution of goods or services in the leisure industries.
This Zacks Sector – Other product has a history of positive total returns for more than 10 years. Specifically, FDLSX has returned 16.2% and 17.4% over the past three and five years, respectively. To see how this fund performed compared to its category, and other 1 and 2 Ranked Mutual Funds, please click here.
FDLSX has a Zacks Mutual Fund Rank #1 and an annual expense ratio of 0.77%, which is below the category average of 0.80%.
Fidelity Select Construction & Housing Portfolio (FSHOX - Free Report) fund seeks capital growth. This non-diversified fund invests in common stocks and most of its assets in the designing and construction of residential, commercial and industrial facilities etc.
This Zacks sector – Other product has a history of positive total returns for more than 10 years. Specifically, FSHOX has returned 25.8% and 19.3% over the past three and five years, respectively. To see how this fund performed compared in its category, and other 1 and 2 Ranked Mutual Funds, please click here.
FSHOX has a Zacks Mutual Fund Rank #1 and an annual expense ratio of 0.78%, which is below the category average of 0.80%.
Fidelity Select Retailing Portfolio (FSRPX - Free Report) fund aims for capital appreciation. This non-diversified fund invests a large portion of its assets in the common stock of companies engaged in merchandising finished goods and services, primarily to individual consumers.
This Sector - Other product has a history of positive total returns for more than 10 years. Specifically, FSRPX has returned 23.7% and 22.6% over the past three and five years, respectively. To see how this fund performed compared to its category, and other 1 and 2 Ranked Mutual Funds, please click here.
FSRPX has a Zacks Mutual Fund Rank #2 and an annual expense ratio of 0.73%, which is below the category average of 0.80%.
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Zacks’ free Fund Newsletter will brief you on top news and analysis, as well as top-performing mutual funds, each week.
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Consumer Confidence Edges Near Pre-Pandemic High: 3 Fund Picks
On Jun 29, the Conference Board reported that its Consumer Confidence Index climbed to 127.3 in June, beating the consensus estimate of 118.7 and higher than May’s upwardly revised figure of 120. Per the report, consumer confidence has hit the highest level since the virus outbreak last March.
The report states that though expectations of short-term inflation have increased, consumers are confident and still have purchasing intentions. Consumers planning to purchase homes, automobiles and major appliances have also increased in June along with plans to spend more on leisure and vacations.
The consumer confidence index has risen for six straight months now. The latest report indicates that consumer spending will continue to support economic growth and help it to rebound in the short term. In fact, households are spending generously and businesses are hiring rapidly to fill-in vacancies created due to the pandemic-led downsizing.
In fact, the percentage of people who said that jobs are plentiful rose to the highest level since 2000, up from 48.5% in May to 54.4% this month. And the sub-index that defines Americans’ view for the next six months rose to 107 from 100.9 in May and is nearly back to pre-COVID levels.
Americans are gearing up to spend generously this summer, especially on big-ticket items like electronic, automobile and housing. They are also ready to pack their bags and hit the road. The main factor driving this optimism is rapid vaccination, which has majorly boosted people’s confidence to step out. Recently, Moderna reported that its COVID-19 vaccine showed promise in a lab study against the Delta variant first identified in India. Hence, vaccinated individuals can now travel without a worry.
Our Top Mutual Fund Choices
Given such positive consumer confidence data, we have shortlisted three funds that carry a Zacks Mutual Fund Rank #1 (Strong Buy) or 2 (Buy) and are poised to grow. In addition, the minimum initial investment for these funds is within $5,000.
We expect these funds to outperform peers in the future. Remember, the goal of the Zacks Mutual Fund Rank is to guide investors to identify the potential winners and losers. Unlike most of the fund-rating systems, the Zacks Mutual Fund Rank is not just focused on the fund’s past performance but also on its likely future success.
The question here is why should investors consider mutual funds? Reduced transaction costs and diversification of portfolio without several commission charges that are associated with stock purchases are primarily the reasons for parking money in mutual funds (read more: Mutual Funds: Advantages, Disadvantages and How They Make Investors Money).
Fidelity Select Leisure Portfolio (FDLSX - Free Report) fund aims at capital appreciation. This non-diversified fund normally invests majority of assets in the common stocks of companies that are mostly engaged in the design, production or distribution of goods or services in the leisure industries.
This Zacks Sector – Other product has a history of positive total returns for more than 10 years. Specifically, FDLSX has returned 16.2% and 17.4% over the past three and five years, respectively. To see how this fund performed compared to its category, and other 1 and 2 Ranked Mutual Funds, please click here.
FDLSX has a Zacks Mutual Fund Rank #1 and an annual expense ratio of 0.77%, which is below the category average of 0.80%.
Fidelity Select Construction & Housing Portfolio (FSHOX - Free Report) fund seeks capital growth. This non-diversified fund invests in common stocks and most of its assets in the designing and construction of residential, commercial and industrial facilities etc.
This Zacks sector – Other product has a history of positive total returns for more than 10 years. Specifically, FSHOX has returned 25.8% and 19.3% over the past three and five years, respectively. To see how this fund performed compared in its category, and other 1 and 2 Ranked Mutual Funds, please click here.
FSHOX has a Zacks Mutual Fund Rank #1 and an annual expense ratio of 0.78%, which is below the category average of 0.80%.
Fidelity Select Retailing Portfolio (FSRPX - Free Report) fund aims for capital appreciation. This non-diversified fund invests a large portion of its assets in the common stock of companies engaged in merchandising finished goods and services, primarily to individual consumers.
This Sector - Other product has a history of positive total returns for more than 10 years. Specifically, FSRPX has returned 23.7% and 22.6% over the past three and five years, respectively. To see how this fund performed compared to its category, and other 1 and 2 Ranked Mutual Funds, please click here.
FSRPX has a Zacks Mutual Fund Rank #2 and an annual expense ratio of 0.73%, which is below the category average of 0.80%.
Want key mutual fund info delivered straight to your inbox?
Zacks’ free Fund Newsletter will brief you on top news and analysis, as well as top-performing mutual funds, each week.
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