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3 Solid Mutual Funds to Buy as US Factory Orders Increase
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The Census Bureau of the Commerce Department reported a 2.6% increase in November factory orders, indicating a recovery from a decline of 3.4% in October. Durable goods orders rose 5.4% in November, following a decline of 5.1% in October. This positive trend, along with non-durable goods orders, highlights the resilience of the manufacturing sector.
Shipments of manufactured goods increased 0.5% in November after experiencing a decline of 1.3% in October. Inventories of manufactured goods increased 0.1%, suggesting growing demand and increased market confidence. This resulted in increased production and job opportunities.
The surge in durable goods orders indicates promising sectors such as machinery, transportation equipment and technology-related manufacturing that show both resilience and potential for growth.
Thus, from an investment standpoint, we have selected three mutual funds, which are expected to hedge your portfolio against any economic downturn and provide attractive returns. Mutual funds, in general, reduce transaction costs and diversify the portfolio without commission charges mostly associated with stock purchases (read more: Mutual Funds: Advantages, Disadvantages, and How They Make Investors Money).
These mutual funds boast a Zacks Mutual Fund Rank #1 (Strong Buy) or 2 (Buy), have positive three-year and five-year annualized returns, minimum initial investments within $5000 and carry a low expense ratio.
Fidelity Select Industrials Fund (FCYIX - Free Report) invests its assets in common stocks of companies principally engaged in the research, development, manufacture, distribution, supply, or sale of materials, equipment, products, or services related to cyclical industries.
David Wagner has been the lead manager of FCYIX since Jun 30, 2023. Most of the fund's holdings were in companies like Union Pacific Corp. (6.1%), Boeing Co. (5.8%) and General Electric Co (5.8%) as of Aug 31, 2023.
FCYIX's 3-year and 5-year annualized returns are 8.9% and 13%, respectively. FCYIX has a Zacks Mutual Fund Rank #1 and an annual expense ratio of 0.73%.
To see how this fund performed compared to its category and other 1 and 2 Ranked Mutual Funds, please click here.
Fidelity Select Materials (FSDPX - Free Report) invests most of its assets in securities of companies principally engaged in the manufacture, mining, processing, or distribution of raw materials and intermediate goods. FSDPX advisors also invest in domestic and foreign issuers.
Ashley Fernandes has been the lead manager of FSDPX since Mar 31, 2022. Most of the fund’s holdings were in Linde plc (21.3%), Freeport-McMoRan Inc. (6.3%) and First Quantum Minerals Ltd (5.6%) as of Aug 31, 2023.
FSDPX’s 3-year and 5-year annualized returns are 8.4% and 11.8%, respectively. FSDPX has a Zacks Mutual Fund Rank #1. Its net expense ratio is 0.75%.
Fidelity Select Automotive Port Fund (FSAVX - Free Report) seeks capital appreciation by investing in common stocks of companies principally engaged in the manufacture, marketing, or sale of automobiles, trucks, specialty vehicles, parts, tires and related services.
Aidan Brandt has been the lead manager of FSAVX since Jun 29, 2023. Most of the fund's holdings were in companies like Tesla, Inc. (12.3%), Toyota Motor Corp (11.7%) and O'Reilly Automotive, Inc. (8.4%) as of Aug 31, 2023.
FSAVX's 3-year and 5-year annualized returns are 2.3% and 17.5%, respectively. FSAVX has a Zacks Mutual Fund Rank #2 and an annual expense ratio of 0.89%.
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3 Solid Mutual Funds to Buy as US Factory Orders Increase
The Census Bureau of the Commerce Department reported a 2.6% increase in November factory orders, indicating a recovery from a decline of 3.4% in October. Durable goods orders rose 5.4% in November, following a decline of 5.1% in October. This positive trend, along with non-durable goods orders, highlights the resilience of the manufacturing sector.
Shipments of manufactured goods increased 0.5% in November after experiencing a decline of 1.3% in October. Inventories of manufactured goods increased 0.1%, suggesting growing demand and increased market confidence. This resulted in increased production and job opportunities.
The surge in durable goods orders indicates promising sectors such as machinery, transportation equipment and technology-related manufacturing that show both resilience and potential for growth.
Thus, from an investment standpoint, we have selected three mutual funds, which are expected to hedge your portfolio against any economic downturn and provide attractive returns. Mutual funds, in general, reduce transaction costs and diversify the portfolio without commission charges mostly associated with stock purchases (read more: Mutual Funds: Advantages, Disadvantages, and How They Make Investors Money).
These mutual funds boast a Zacks Mutual Fund Rank #1 (Strong Buy) or 2 (Buy), have positive three-year and five-year annualized returns, minimum initial investments within $5000 and carry a low expense ratio.
Fidelity Select Industrials Fund (FCYIX - Free Report) invests its assets in common stocks of companies principally engaged in the research, development, manufacture, distribution, supply, or sale of materials, equipment, products, or services related to cyclical industries.
David Wagner has been the lead manager of FCYIX since Jun 30, 2023. Most of the fund's holdings were in companies like Union Pacific Corp. (6.1%), Boeing Co. (5.8%) and General Electric Co (5.8%) as of Aug 31, 2023.
FCYIX's 3-year and 5-year annualized returns are 8.9% and 13%, respectively. FCYIX has a Zacks Mutual Fund Rank #1 and an annual expense ratio of 0.73%.
To see how this fund performed compared to its category and other 1 and 2 Ranked Mutual Funds, please click here.
Fidelity Select Materials (FSDPX - Free Report) invests most of its assets in securities of companies principally engaged in the manufacture, mining, processing, or distribution of raw materials and intermediate goods. FSDPX advisors also invest in domestic and foreign issuers.
Ashley Fernandes has been the lead manager of FSDPX since Mar 31, 2022. Most of the fund’s holdings were in Linde plc (21.3%), Freeport-McMoRan Inc. (6.3%) and First Quantum Minerals Ltd (5.6%) as of Aug 31, 2023.
FSDPX’s 3-year and 5-year annualized returns are 8.4% and 11.8%, respectively. FSDPX has a Zacks Mutual Fund Rank #1. Its net expense ratio is 0.75%.
Fidelity Select Automotive Port Fund (FSAVX - Free Report) seeks capital appreciation by investing in common stocks of companies principally engaged in the manufacture, marketing, or sale of automobiles, trucks, specialty vehicles, parts, tires and related services.
Aidan Brandt has been the lead manager of FSAVX since Jun 29, 2023. Most of the fund's holdings were in companies like Tesla, Inc. (12.3%), Toyota Motor Corp (11.7%) and O'Reilly Automotive, Inc. (8.4%) as of Aug 31, 2023.
FSAVX's 3-year and 5-year annualized returns are 2.3% and 17.5%, respectively. FSAVX has a Zacks Mutual Fund Rank #2 and an annual expense ratio of 0.89%.
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. Get it free >>