We use cookies to understand how you use our site and to improve your experience. This includes personalizing content and advertising. To learn more, click here. By continuing to use our site, you accept our use of cookies, revised Privacy Policy and Terms of Service.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
3 Solid Mutual Funds to Buy Amid Rising U.S. Factory Orders
Read MoreHide Full Article
In February, durable goods orders increased 1.4% in the United States, bouncing back from a decline of 6.9% in January.
Recent data from the Commerce Department's Census Bureau shows a surge of 3.3% in orders for transportation equipment after a steep drop of 18.3% in January. Moreover, orders for metals and fabricated metals also saw an uptick, with primary metals orders rising 1.4% and fabricated metals orders increasing 0.8%. This growth in these sectors could boost manufacturing activity and potentially lead to increased employment levels and enhanced business confidence.
Machinery orders rose 1.9%, further reinforcing the idea of a strengthening manufacturing sector. These positive numbers highlight the resilience of the industry amid challenges.
The surge in durable goods orders indicates a positive outlook for both the manufacturing sector and the overall economy. As the economic scenario improves, investing in manufacturers of goods could offer higher returns.
Thus, from an investment standpoint, we have selected three mutual funds that 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 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 (24.9%), Freeport-McMoRan Inc. (7%) and Dow Inc. (5.6%) as of Nov 30, 2023.
FSDPX’s 3-year and 5-year annualized returns are 7.3% and 9.5%, respectively. FSDPX has a Zacks Mutual Fund Rank #1. Its net expense ratio is 0.75%.
To see how this fund performed compared to its category and other 1 and 2 Ranked Mutual Funds, please click here.
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. (6.2%), General Electric Co (6.2%) and Boeing Co. (6%) as of Nov 30, 2023.
FCYIX's 3-year and 5-year annualized returns are 13.3% and 11.6%, respectively. FCYIX has a Zacks Mutual Fund Rank #2 and an annual expense ratio of 0.73%.
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 Toyota Motor Corp (11.7%), Tesla, Inc. (9.7%) and O'Reilly Automotive, Inc. (9.5%) as of Nov 30, 2023.
FSAVX's 3-year and 5-year annualized returns are 3.2% and 16.3%, 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 >>
See More Zacks Research for These Tickers
Normally $25 each - click below to receive one report FREE:
Image: Bigstock
3 Solid Mutual Funds to Buy Amid Rising U.S. Factory Orders
In February, durable goods orders increased 1.4% in the United States, bouncing back from a decline of 6.9% in January.
Recent data from the Commerce Department's Census Bureau shows a surge of 3.3% in orders for transportation equipment after a steep drop of 18.3% in January. Moreover, orders for metals and fabricated metals also saw an uptick, with primary metals orders rising 1.4% and fabricated metals orders increasing 0.8%. This growth in these sectors could boost manufacturing activity and potentially lead to increased employment levels and enhanced business confidence.
Machinery orders rose 1.9%, further reinforcing the idea of a strengthening manufacturing sector. These positive numbers highlight the resilience of the industry amid challenges.
The surge in durable goods orders indicates a positive outlook for both the manufacturing sector and the overall economy. As the economic scenario improves, investing in manufacturers of goods could offer higher returns.
Thus, from an investment standpoint, we have selected three mutual funds that 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 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 (24.9%), Freeport-McMoRan Inc. (7%) and Dow Inc. (5.6%) as of Nov 30, 2023.
FSDPX’s 3-year and 5-year annualized returns are 7.3% and 9.5%, respectively. FSDPX has a Zacks Mutual Fund Rank #1. Its net expense ratio is 0.75%.
To see how this fund performed compared to its category and other 1 and 2 Ranked Mutual Funds, please click here.
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. (6.2%), General Electric Co (6.2%) and Boeing Co. (6%) as of Nov 30, 2023.
FCYIX's 3-year and 5-year annualized returns are 13.3% and 11.6%, respectively. FCYIX has a Zacks Mutual Fund Rank #2 and an annual expense ratio of 0.73%.
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 Toyota Motor Corp (11.7%), Tesla, Inc. (9.7%) and O'Reilly Automotive, Inc. (9.5%) as of Nov 30, 2023.
FSAVX's 3-year and 5-year annualized returns are 3.2% and 16.3%, 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 >>