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U.S. Consumer Confidence Edges Higher in July: 4 Fund Picks
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U.S. consumer confidence has increased for six months in a row now, thanks to rapid vaccinations, financial stimulus and full reopening efforts of the economy. On Jul 27, the Conference Board reported that its consumer confidence index ticked up to 129.1 for July, the highest level since February 2020. The reported figure is much higher than the consensus estimate of 125 and June’s figure has also been upwardly revised to 128.9.
Businesses are struggling to keep up with pent-up demand from customers who are venturing out after months of lockdown. Americans have been confident about the economy and its growth trend despite the fears of the delta strain of coronavirus that caused bumps on the recovery path. While the delta strain could undo several reopening progresses if cases continue to mount, the Biden administration is reportedly weighing new guidelines on mask-wearing and other restrictions to minimize the impact on the economy.
Sub-indexes that track how Americans feel about the economy right now rose to 160.3 this month from 159.6 in June. Among those surveyed, many believe that “it’s easy to find a job” and inflation woes have lessened a little this month. Per the report, the one-year consumer inflation rate expectations have dropped to 6.6% from 6.7% last month. Notably, 54.9% of consumers surveyed said jobs are “plentiful” and 27.7% expect more jobs to be available in the months ahead.
Also, Americans have hit the roads this summer sidelining pandemic fears and are spending generously on big-ticket items like electronic, automobile and housing. Retail and food services sales rebounded at the beginning of summer and consumers have bumped up spending on travel, dining out and entertainment.
Our Top 4 Fund Picks
Given the positive data and looking at the current economic trend, we have shortlisted four 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 Retailing Portfolio (FSRPX - Free Report) is a Zacks Mutual Fund Rank #1 fund that 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 Zacks Sector-Other product has a history of positive total returns for more than 10 years. Specifically, FSRPX has returned 23.7% over the past three and five-year period, respectively. To see how this fund performed compared in its category, and other 1 and 2 Ranked Mutual Funds, please click here.
FSRPX has an annual expense ratio of 0.73%, which is below the category average of 0.79%.
Fidelity Select Leisure Portfolio (FDLSX - Free Report) is a Zacks Mutual Fund Rank #1 fund and aims for capital appreciation. This non-diversified fund invests majority of assets in common stocks of companies, principally 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 three and five-year return of 16.6% and 16.7%, respectively. To see how this fund performed compared in its category, and other 1 and 2 Ranked Mutual Funds, please click here.
FDLSX has an annual expense ratio of 0.77%, which is below the category average of 0.79%.
BlackRock Commodity Strategies Portfolio Investor A Shares (BCSAX - Free Report) is a Zacks Mutual Fund Rank #1 fund and aims for total return. The fund focuses on investments in commodity-linked derivatives and to plans to meet coverage and collateral requirements associated with these derivative investments.
This Zacks Sector-Other product has a history of positive total returns for more than 10 years. Specifically, BCSAX has three and five-year return of 6.7% and 5.7%, respectively. To see how this fund performed compared in its category, and other 1 and 2 Ranked Mutual Funds, please click here.
BCSAX has an annual expense ratio of 0.97%, which is below the category average of 1.11%.
Fidelity Select Consumer Staples Portfolio (FDFAX - Free Report) is a Zacks Mutual Fund Rank #2 fund and aims for capital growth. It invests majority of assets in securities of companies primarily engaged in manufacturing, marketing or distribution of consumer staples products.
This Zacks sector – Other product has a history of positive total returns for more than 10 years. Specifically, FDFAX has returned 13.3% and 7% 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.
FDFAX, a non-diversified fund, has an annual expense ratio of 0.75% versus the category average of 0.76%.
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U.S. Consumer Confidence Edges Higher in July: 4 Fund Picks
U.S. consumer confidence has increased for six months in a row now, thanks to rapid vaccinations, financial stimulus and full reopening efforts of the economy. On Jul 27, the Conference Board reported that its consumer confidence index ticked up to 129.1 for July, the highest level since February 2020. The reported figure is much higher than the consensus estimate of 125 and June’s figure has also been upwardly revised to 128.9.
Businesses are struggling to keep up with pent-up demand from customers who are venturing out after months of lockdown. Americans have been confident about the economy and its growth trend despite the fears of the delta strain of coronavirus that caused bumps on the recovery path. While the delta strain could undo several reopening progresses if cases continue to mount, the Biden administration is reportedly weighing new guidelines on mask-wearing and other restrictions to minimize the impact on the economy.
Sub-indexes that track how Americans feel about the economy right now rose to 160.3 this month from 159.6 in June. Among those surveyed, many believe that “it’s easy to find a job” and inflation woes have lessened a little this month. Per the report, the one-year consumer inflation rate expectations have dropped to 6.6% from 6.7% last month. Notably, 54.9% of consumers surveyed said jobs are “plentiful” and 27.7% expect more jobs to be available in the months ahead.
Also, Americans have hit the roads this summer sidelining pandemic fears and are spending generously on big-ticket items like electronic, automobile and housing. Retail and food services sales rebounded at the beginning of summer and consumers have bumped up spending on travel, dining out and entertainment.
Our Top 4 Fund Picks
Given the positive data and looking at the current economic trend, we have shortlisted four 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 Retailing Portfolio (FSRPX - Free Report) is a Zacks Mutual Fund Rank #1 fund that 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 Zacks Sector-Other product has a history of positive total returns for more than 10 years. Specifically, FSRPX has returned 23.7% over the past three and five-year period, respectively. To see how this fund performed compared in its category, and other 1 and 2 Ranked Mutual Funds, please click here.
FSRPX has an annual expense ratio of 0.73%, which is below the category average of 0.79%.
Fidelity Select Leisure Portfolio (FDLSX - Free Report) is a Zacks Mutual Fund Rank #1 fund and aims for capital appreciation. This non-diversified fund invests majority of assets in common stocks of companies, principally 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 three and five-year return of 16.6% and 16.7%, respectively. To see how this fund performed compared in its category, and other 1 and 2 Ranked Mutual Funds, please click here.
FDLSX has an annual expense ratio of 0.77%, which is below the category average of 0.79%.
BlackRock Commodity Strategies Portfolio Investor A Shares (BCSAX - Free Report) is a Zacks Mutual Fund Rank #1 fund and aims for total return. The fund focuses on investments in commodity-linked derivatives and to plans to meet coverage and collateral requirements associated with these derivative investments.
This Zacks Sector-Other product has a history of positive total returns for more than 10 years. Specifically, BCSAX has three and five-year return of 6.7% and 5.7%, respectively. To see how this fund performed compared in its category, and other 1 and 2 Ranked Mutual Funds, please click here.
BCSAX has an annual expense ratio of 0.97%, which is below the category average of 1.11%.
Fidelity Select Consumer Staples Portfolio (FDFAX - Free Report) is a Zacks Mutual Fund Rank #2 fund and aims for capital growth. It invests majority of assets in securities of companies primarily engaged in manufacturing, marketing or distribution of consumer staples products.
This Zacks sector – Other product has a history of positive total returns for more than 10 years. Specifically, FDFAX has returned 13.3% and 7% 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.
FDFAX, a non-diversified fund, has an annual expense ratio of 0.75% versus the category average of 0.76%.
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 >>