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Trump's $1T Infrastructure Bill Could Boost These 3 Funds
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The Trump administration has come up with a plan to push the newly reopened economy and help it gather momentum amid rising coronavirus cases in the country. President Donald Trump has proposed new infrastructure spending in a bid to improve the country’s current economic picture. Mutual fund investors could consider a few funds that may benefit directly from the President’s plans, should the bill be successfully implemented.
Here’s What the President’s Infrastructure Bill Holds
An initial version of the bill has been readied by the Department of Transportation, according to a Bloomberg report earlier this week. The proposed $1 trillion bill has laid aside most of the capital for traditional infrastructure work such as bridges, roads, highways and freeways etc. along with funds for infrastructure for 5G wireless access and broadband in rural areas across the United States.
The infrastructure bill proposed by the Trump administration is part of a stimulus measure, which has been laid out to push the country’s economy amid the coronavirus pandemic. If passed, the bill would hold potential since infrastructure plans span over long periods of time and could thus benefit workers associated with the projects.
The President is scheduled to discuss rural broadband access at a White House event on Jun 18.
Which Sectors Could Gain From the Bill?
The infrastructure bill holds significant operations for sectors such as construction and technology, especially in the area of telecommunications. Major infrastructure building and repair along with upgrading communication systems across the country could considerably boost companies that offer products and services in construction, building products, wireless and broadband infrastructure etc.
3 Top Mutual Funds to Buy
We have, therefore, selected three mutual funds that invest in the aforementioned sectors. All of these funds carry a Zacks Mutual Fund Rank #1 (Strong Buy) or 2 (Buy). In addition, the minimum initial investment for these funds is within $5,000.
We expect these funds to outperform their 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 growth. The fund invests the majority of its assets in securities of companies mostly engaged in activities that are related to wireless communications services or products. The non-diversified fund primarily invests in common stocks of companies. FWRLX carries a Zacks Mutual Fund Rank #1.
This Zacks Sector – Tech 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 0.81%, which is below the category average of 1.23%. It has returned 13% over the past three years. The fund has no minimum initial investment.
DWS RREEF Real Estate Securities Fund - Class A (RRRAX - Free Report) aims for capital growth and current income over the long term. The fund invests the majority of its assets in equity securities of real estate investment trusts and real estate companies. RRRAX is a non-diversified fund and carries a Zacks Mutual Fund Rank #1.
This Zacks Sector – Real Estate 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.
RRRAX has an annual expense ratio of 0.98%, which is below the category average of 1.19%. It has returned 2.8% over the past three years. The fund has a minimum initial investment of $1000.
Fidelity Advisor Telecommunications Fund Class A (FTUAX - Free Report) aims for capital appreciation. The fund invests the majority of its assets in securities of companies that develop, produce or distribute telecommunications services. The non-diversified fund primarily invests in common stocks of companies. FTUAX carries a Zacks Mutual Fund Rank #2.
This Zacks Sector – Tech 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.
FTUAX has an annual expense ratio of 1.18%, which is below the category average of 1.23%. It has returned 5.7% over the past three years. The fund has no minimum initial investment.
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Trump's $1T Infrastructure Bill Could Boost These 3 Funds
The Trump administration has come up with a plan to push the newly reopened economy and help it gather momentum amid rising coronavirus cases in the country. President Donald Trump has proposed new infrastructure spending in a bid to improve the country’s current economic picture. Mutual fund investors could consider a few funds that may benefit directly from the President’s plans, should the bill be successfully implemented.
Here’s What the President’s Infrastructure Bill Holds
An initial version of the bill has been readied by the Department of Transportation, according to a Bloomberg report earlier this week. The proposed $1 trillion bill has laid aside most of the capital for traditional infrastructure work such as bridges, roads, highways and freeways etc. along with funds for infrastructure for 5G wireless access and broadband in rural areas across the United States.
The infrastructure bill proposed by the Trump administration is part of a stimulus measure, which has been laid out to push the country’s economy amid the coronavirus pandemic. If passed, the bill would hold potential since infrastructure plans span over long periods of time and could thus benefit workers associated with the projects.
The President is scheduled to discuss rural broadband access at a White House event on Jun 18.
Which Sectors Could Gain From the Bill?
The infrastructure bill holds significant operations for sectors such as construction and technology, especially in the area of telecommunications. Major infrastructure building and repair along with upgrading communication systems across the country could considerably boost companies that offer products and services in construction, building products, wireless and broadband infrastructure etc.
3 Top Mutual Funds to Buy
We have, therefore, selected three mutual funds that invest in the aforementioned sectors. All of these funds carry a Zacks Mutual Fund Rank #1 (Strong Buy) or 2 (Buy). In addition, the minimum initial investment for these funds is within $5,000.
We expect these funds to outperform their 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 growth. The fund invests the majority of its assets in securities of companies mostly engaged in activities that are related to wireless communications services or products. The non-diversified fund primarily invests in common stocks of companies. FWRLX carries a Zacks Mutual Fund Rank #1.
This Zacks Sector – Tech 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 0.81%, which is below the category average of 1.23%. It has returned 13% over the past three years. The fund has no minimum initial investment.
DWS RREEF Real Estate Securities Fund - Class A (RRRAX - Free Report) aims for capital growth and current income over the long term. The fund invests the majority of its assets in equity securities of real estate investment trusts and real estate companies. RRRAX is a non-diversified fund and carries a Zacks Mutual Fund Rank #1.
This Zacks Sector – Real Estate 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.
RRRAX has an annual expense ratio of 0.98%, which is below the category average of 1.19%. It has returned 2.8% over the past three years. The fund has a minimum initial investment of $1000.
Fidelity Advisor Telecommunications Fund Class A (FTUAX - Free Report) aims for capital appreciation. The fund invests the majority of its assets in securities of companies that develop, produce or distribute telecommunications services. The non-diversified fund primarily invests in common stocks of companies. FTUAX carries a Zacks Mutual Fund Rank #2.
This Zacks Sector – Tech 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.
FTUAX has an annual expense ratio of 1.18%, which is below the category average of 1.23%. It has returned 5.7% over the past three years. The fund has no minimum initial investment.
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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