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2 Compelling Mutual Funds to Invest in as Retail Sales Soar
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The retail sector has recently experienced a surge in sales, indicating strong economic growth and consumer confidence. U.S. retail and food services sales estimates for May 2023 show positive trends with an impressive $686.6 billion in adjusted sales figures, reflecting a 0.3% increase from the previous month and a significant 1.6% rise from May 2022, accounting for seasonal variation and holiday differences. This data highlights the resilience and recovery of the retail industry amid changing economic conditions.
Recent reports from the Labor Department confirm that there has been no significant change in initial jobless claims, which were reported at 262,000 for the week ending Jun 10. Alongside the promising retail sales figures, this suggests a stable job market.
The four-week moving average increased slightly to 246,750, in line with the previous week's reading. Notably, overall jobless claims have remained steady over time. This stability has contributed to supporting consumer confidence and spending.
The University of Michigan reported a rise in U.S. consumer sentiment, reaching an encouraging 63.9, surpassing the estimated 60.8, and bolstering hopes for a positive outlook. This surge in consumer optimism indicates that people are feeling more confident about their economic prospects, resulting in potentially increased spending habits.
The retail sector and the broader economy are looking promising these days due to a combination of factors such as rising retail sales, stable jobless claims, and improved consumer sentiment. The confidence that consumers have regained caused by market dynamics, along with businesses adapting themselves accordingly, may lead to the continued growth of the retail industry in the months to come. Overall, the numerous benefits make it a solid investment option worth considering.
Thus, from an investment standpoint, we have selected two mutual funds having retail stocks as their major holdings, which are also 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, by the way, 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 Consumer Staples Portfolio (FDIGX - Free Report) fund aims at capital appreciation. FDIGX invests its assets in the common stock of companies engaged in the manufacture, sale, or distribution of consumer staples.
Ben Shuleva has been the lead manager of FDIGX since Dec 31, 2019. Most of the fund's holdings were in companies like PROCTER & GAMBLE CO (14.2%), COCA-COLA CO (14.2%) and WALMART INC (6.5%) as of Feb 28, 2023.
FDIGX's 3-year and 5-year returns are 11.1% and 9.9%, respectively. The annual expense ratio is 0.74% compared to the category average of 0.76%. FDIGX has a Zacks Mutual Fund Rank #2.
To see how this fund performed compared to its category and other 1 and 2 Ranked Mutual Funds, please click here.
Fidelity Select Retailing Portfolio (FSRPX - Free Report) aims to seek capital appreciation by investing most of its assets in common stocks of companies principally engaged in merchandising finished goods and services primarily to individual consumers.
Boris Shepov has been the lead manager of FSRPX since May 15, 2018. Most of the fund's holdings were in companies like AMAZON.COM INC (23.8%), HOME DEPOT INC (11.6%) and LOWE'S COMPANIES INC (7.6%) as of Feb 28, 2023.
FSRPX's 3-year and 5-year returns are 6.1% and 8.6%, respectively. The annual expense ratio is 0.72% compared to the category average of 0.79%. FSRPX has a Zacks Mutual Fund Rank #2.
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2 Compelling Mutual Funds to Invest in as Retail Sales Soar
The retail sector has recently experienced a surge in sales, indicating strong economic growth and consumer confidence. U.S. retail and food services sales estimates for May 2023 show positive trends with an impressive $686.6 billion in adjusted sales figures, reflecting a 0.3% increase from the previous month and a significant 1.6% rise from May 2022, accounting for seasonal variation and holiday differences. This data highlights the resilience and recovery of the retail industry amid changing economic conditions.
Recent reports from the Labor Department confirm that there has been no significant change in initial jobless claims, which were reported at 262,000 for the week ending Jun 10. Alongside the promising retail sales figures, this suggests a stable job market.
The four-week moving average increased slightly to 246,750, in line with the previous week's reading. Notably, overall jobless claims have remained steady over time. This stability has contributed to supporting consumer confidence and spending.
The University of Michigan reported a rise in U.S. consumer sentiment, reaching an encouraging 63.9, surpassing the estimated 60.8, and bolstering hopes for a positive outlook. This surge in consumer optimism indicates that people are feeling more confident about their economic prospects, resulting in potentially increased spending habits.
The retail sector and the broader economy are looking promising these days due to a combination of factors such as rising retail sales, stable jobless claims, and improved consumer sentiment. The confidence that consumers have regained caused by market dynamics, along with businesses adapting themselves accordingly, may lead to the continued growth of the retail industry in the months to come. Overall, the numerous benefits make it a solid investment option worth considering.
Thus, from an investment standpoint, we have selected two mutual funds having retail stocks as their major holdings, which are also 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, by the way, 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 Consumer Staples Portfolio (FDIGX - Free Report) fund aims at capital appreciation. FDIGX invests its assets in the common stock of companies engaged in the manufacture, sale, or distribution of consumer staples.
Ben Shuleva has been the lead manager of FDIGX since Dec 31, 2019. Most of the fund's holdings were in companies like PROCTER & GAMBLE CO (14.2%), COCA-COLA CO (14.2%) and WALMART INC (6.5%) as of Feb 28, 2023.
FDIGX's 3-year and 5-year returns are 11.1% and 9.9%, respectively. The annual expense ratio is 0.74% compared to the category average of 0.76%. FDIGX has a Zacks Mutual Fund Rank #2.
To see how this fund performed compared to its category and other 1 and 2 Ranked Mutual Funds, please click here.
Fidelity Select Retailing Portfolio (FSRPX - Free Report) aims to seek capital appreciation by investing most of its assets in common stocks of companies principally engaged in merchandising finished goods and services primarily to individual consumers.
Boris Shepov has been the lead manager of FSRPX since May 15, 2018. Most of the fund's holdings were in companies like AMAZON.COM INC (23.8%), HOME DEPOT INC (11.6%) and LOWE'S COMPANIES INC (7.6%) as of Feb 28, 2023.
FSRPX's 3-year and 5-year returns are 6.1% and 8.6%, respectively. The annual expense ratio is 0.72% compared to the category average of 0.79%. FSRPX has a Zacks Mutual Fund Rank #2.
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 >>