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4 Top No-Load Funds to Wait Out a Likely US-EU Trade War
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U.S. equities may be on a winning streak at present, largely deriving optimism from the almost finalized phase one U.S.-China trade deal, but risks emerge on the U.S.-EU trade front in the near future. In fact, the United States is expected to begin trade talks with the U.K. soon after the latter leaves the European Union (EU) by the end of January.
Mutual fund investors, who wish to opt for low-fee investments, could consider no-load mutual funds at present.
U.S. Considering Tariffs on EU Products
On Dec 17, U.S. Trade Representative Robert Lighthizer, speaking to Fox Business, warned that the United States was prepared to raise tariffs against the European Union. According to him, the United States’ trade relationship with Europe was “very unbalanced.”
The United States is considering imposing as much as 100% tariffs on products it imports from the EU. Under the proposed framework of taxes, the Trump administration aims some of the most emblematic European products, the likes of which include Cognac, Irish and Scotch whiskies.
Last week, the Office of the United States Trade Representative (USTR) published a list of additional European goods that are under consideration for tariffs. These products range from food products such as yoghurt, coffee, Italian and Swiss cheese and frozen meat to screwdrivers, knives, books and microwave ovens.
Earlier in 2019, the USTR had published numerous lists of European products worth more than $10 billionthat it had planned to tax. The move was in retaliation to the fallout of its dispute with Airbus.
Why Invest in No-Load Funds?
Given that a trade disagreement with members of the European Union is imminent, it would be wise to invest in no-load mutual funds. No-load mutual funds can help investors to avoid high fees since these funds do not have a front-end or back-end load.
In fact, the total returns of a no-load mutual fund are deduced to cover the expenses incurred to manage the mutual fund’s portfolio. Thus, no-load funds with lower expense ratios offer higher returns.
Our Choices
We have, therefore, selected four no-load mutual funds that carry a Zacks Mutual Fund Rank #1 (Strong Buy) and have provided handsome returns to investors on a year-to-date basis. In addition, the minimum initial investment 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 potential winners and losers. Unlike most of the fund-rating systems, the Zacks Mutual Fund Rank is not just focused on past performance but also on the likely future success of the fund.
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 why one should be parking money in mutual funds (read more: Mutual Funds: Advantages, Disadvantages, and How They Make Investors Money).
Fidelity Select Wireless Portfolio (FWRLX - Free Report) aims for capital appreciation. The fund invests the majority of its assets in securities of companies that are primarily engaged in activities relating to wireless communications services or products. The non-diversified fund mostly invests in common stocks.
This Zacks sector – Tech product has a history of positive total returns for more than 10 years. To see how this fund performed compared to its category, and other 1 and 2 Ranked Mutual Funds, please click here.
FWRLX has an annual expense ratio of 0.83%, which is below the category average of 1.23%. It has returned 34.2% on a year-to-date basis. FWRLX has no minimum initial investment.
State Farm Balanced Fund (STFBX - Free Report) aims for long-term capital growth and current income. The fund invests the majority of its assets in common stocks of companies. It also invests a smaller portion of its assets in fixed income securities, which comprise investment grade bonds issued by American companies and U.S. government and agency obligations.
This Zacks sector – Allocation Balanced product has a history of positive total returns for more than 10 years. To see how this fund performed compared to its category, and other 1 and 2 Ranked Mutual Funds, please click here.
STFBX has an annual expense ratio of 0.13%, which is below the category average of 0.82%. It has returned 19.2% on a year-to-date basis. STFBX has a minimum initial investment of $250.
GuideStone Funds Value Equity Fund Investor Class (GVEZX - Free Report) seeks to provide long-term capital appreciation. The fund invests the majority of its assets in equity securities. It is diversified and mostly focuses on large- and medium-capitalization American companies.
This Zacks sector – Large Cap Value product has a history of positive total returns for more than 10 years. To see how this fund performed compared to its category, and other 1 and 2 Ranked Mutual Funds, please click here.
GVEZX has an annual expense ratio of 0.87%, which is below the category average of 1.01%. It has returned 24.2% on a year-to-date basis. GVEZX has a minimum initial investment of $1000.
Parnassus Mid Cap Fund (PARMX - Free Report) aims for capital growth. The fund invests the majority of its assets in securities of medium-capitalization companies. According to the fund’s managers, a medium-capitalization company has a market capitalization between that of the smallest and largest constituents of the Russell Midcap Index. PARMX may also invest a smaller part of its assets in securities of large- and small-capitalization companies.
This Zacks sector – Mid Cap Growth product has a history of positive total returns for more than 10 years. To see how this fund performed compared to its category, and other 1 and 2 Ranked Mutual Funds, please click here.
PARMX has an annual expense ratio of 0.99%, which is below the category average of 1.06%. It has returned 26.3% on a year-to-date basis. PARMX has a minimum initial investment of $2000.
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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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4 Top No-Load Funds to Wait Out a Likely US-EU Trade War
U.S. equities may be on a winning streak at present, largely deriving optimism from the almost finalized phase one U.S.-China trade deal, but risks emerge on the U.S.-EU trade front in the near future. In fact, the United States is expected to begin trade talks with the U.K. soon after the latter leaves the European Union (EU) by the end of January.
Mutual fund investors, who wish to opt for low-fee investments, could consider no-load mutual funds at present.
U.S. Considering Tariffs on EU Products
On Dec 17, U.S. Trade Representative Robert Lighthizer, speaking to Fox Business, warned that the United States was prepared to raise tariffs against the European Union. According to him, the United States’ trade relationship with Europe was “very unbalanced.”
The United States is considering imposing as much as 100% tariffs on products it imports from the EU. Under the proposed framework of taxes, the Trump administration aims some of the most emblematic European products, the likes of which include Cognac, Irish and Scotch whiskies.
Last week, the Office of the United States Trade Representative (USTR) published a list of additional European goods that are under consideration for tariffs. These products range from food products such as yoghurt, coffee, Italian and Swiss cheese and frozen meat to screwdrivers, knives, books and microwave ovens.
Earlier in 2019, the USTR had published numerous lists of European products worth more than $10 billionthat it had planned to tax. The move was in retaliation to the fallout of its dispute with Airbus.
Why Invest in No-Load Funds?
Given that a trade disagreement with members of the European Union is imminent, it would be wise to invest in no-load mutual funds. No-load mutual funds can help investors to avoid high fees since these funds do not have a front-end or back-end load.
In fact, the total returns of a no-load mutual fund are deduced to cover the expenses incurred to manage the mutual fund’s portfolio. Thus, no-load funds with lower expense ratios offer higher returns.
Our Choices
We have, therefore, selected four no-load mutual funds that carry a Zacks Mutual Fund Rank #1 (Strong Buy) and have provided handsome returns to investors on a year-to-date basis. In addition, the minimum initial investment 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 potential winners and losers. Unlike most of the fund-rating systems, the Zacks Mutual Fund Rank is not just focused on past performance but also on the likely future success of the fund.
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 why one should be parking money in mutual funds (read more: Mutual Funds: Advantages, Disadvantages, and How They Make Investors Money).
Fidelity Select Wireless Portfolio (FWRLX - Free Report) aims for capital appreciation. The fund invests the majority of its assets in securities of companies that are primarily engaged in activities relating to wireless communications services or products. The non-diversified fund mostly invests in common stocks.
This Zacks sector – Tech product has a history of positive total returns for more than 10 years. To see how this fund performed compared to its category, and other 1 and 2 Ranked Mutual Funds, please click here.
FWRLX has an annual expense ratio of 0.83%, which is below the category average of 1.23%. It has returned 34.2% on a year-to-date basis. FWRLX has no minimum initial investment.
State Farm Balanced Fund (STFBX - Free Report) aims for long-term capital growth and current income. The fund invests the majority of its assets in common stocks of companies. It also invests a smaller portion of its assets in fixed income securities, which comprise investment grade bonds issued by American companies and U.S. government and agency obligations.
This Zacks sector – Allocation Balanced product has a history of positive total returns for more than 10 years. To see how this fund performed compared to its category, and other 1 and 2 Ranked Mutual Funds, please click here.
STFBX has an annual expense ratio of 0.13%, which is below the category average of 0.82%. It has returned 19.2% on a year-to-date basis. STFBX has a minimum initial investment of $250.
GuideStone Funds Value Equity Fund Investor Class (GVEZX - Free Report) seeks to provide long-term capital appreciation. The fund invests the majority of its assets in equity securities. It is diversified and mostly focuses on large- and medium-capitalization American companies.
This Zacks sector – Large Cap Value product has a history of positive total returns for more than 10 years. To see how this fund performed compared to its category, and other 1 and 2 Ranked Mutual Funds, please click here.
GVEZX has an annual expense ratio of 0.87%, which is below the category average of 1.01%. It has returned 24.2% on a year-to-date basis. GVEZX has a minimum initial investment of $1000.
Parnassus Mid Cap Fund (PARMX - Free Report) aims for capital growth. The fund invests the majority of its assets in securities of medium-capitalization companies. According to the fund’s managers, a medium-capitalization company has a market capitalization between that of the smallest and largest constituents of the Russell Midcap Index. PARMX may also invest a smaller part of its assets in securities of large- and small-capitalization companies.
This Zacks sector – Mid Cap Growth product has a history of positive total returns for more than 10 years. To see how this fund performed compared to its category, and other 1 and 2 Ranked Mutual Funds, please click here.
PARMX has an annual expense ratio of 0.99%, which is below the category average of 1.06%. It has returned 26.3% on a year-to-date basis. PARMX has a minimum initial investment of $2000.
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