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3 BlackRock Mutual Funds to Buy as Rate Cuts Approach
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Interest rate cuts by the Fed are approaching fast. If one goes by current market sentiment, we should see the first rate-cut announcement as early as March 2024. Inflation is in check, albeit still not down to the Fed’s target rate of 2%. Investor mood is upbeat across sectors, and in this environment, BlackRock Inc. (BLK - Free Report) , one of the world’s largest asset managers, is poised to make the most of these opportunities.
BlackRock was founded in the year 1988. Based in New York City, the company offers investment, advisory and risk management solutions in various asset classes like equity, fixed income, cash management, alternative investment and real estate. It has more than 19,000 employees and is present in more than 36 countries.
BlackRock reported that it had $9.1 trillion worth of assets under management as of Sep 30, 2023, as it beat earnings estimates in the third quarter. In the quarter, BLK reported adjusted earnings of $10.91/share, widely surpassing the Zacks Consensus Estimate of $8.47.
BLK’s initiatives to restructure the actively managed equity business are expected to continue aiding the company's growth. Another big thumbs up for the company would be coming from the crypto sector, with the SEC sending soft signals that it would stop stalling the foray of traditional companies in the digital coin market.
If the Bitcoin ETF application it filed with the SEC at the end of June 2023 bears fruit, it will also enter into and lend credence to the crypto market. Add to that strong earnings numbers and an iron-clad reputation, and the financial giant is well-positioned to counter any headwinds from global macroeconomic factors.
Hence, investing in BlackRock mutual funds may provide the much-required stability and growth potential in a market that is expected to do well in the coming months. Astute investors should consider such funds at present. Mutual funds, in general, reduce transaction costs and diversify portfolios without an array of commission charges that are mostly associated with stock purchases (read more: Mutual Funds: Advantages, Disadvantages, and How They Make Investors Money).
We have thus selected three mutual funds that boast a Zacks Mutual Fund Rank #1 (Strong Buy) or 2 (Buy), have positive three-year and five-year annualized returns and minimum initial investments within $5000 as well as carry a low expense ratio.
BlackRock Tactical Opportunities Fund (PCBSX - Free Report) seeks long-term capital appreciation by using a macro asset allocation strategy, investing different percentages of its portfolio in global stocks, bonds, money market instruments, cash and foreign currencies. The advisor may choose to invest in common stock, preferred stock and depositary receipts.
Richard Murrall has been the lead manager of PCBSX since May 2017. The three top holdings for PCBSX are 4.2% in Microsoft, 3.7% in Apple and 2.2% in Amazon.
PCBSX’s 3-year and 5-year annualized returns are 3.7% and 3.5%, respectively, and its net expense ratio is 1.10% compared to the category average of 1.52%. PCBSX has a Zacks Mutual Fund Rank #1. To see how this fund performed compared to its category, and other 1 and 2 Ranked Mutual Funds, please click here.
BlackRock Large Cap Focus Value (MDBAX - Free Report) seeks capital appreciation along with current income by investing most of its assets in large-cap equity securities and derivatives that have similar economic characteristics to such securities. MDBAX advisors primarily choose to invest in equity securities of undervalued companies.
Tony DeSpirito has been the lead manager of MDBAX since November 2019. The three top holdings for MDBAX are 3.4% in Wells Fargo, 3.2% in Citigroup and 3% in Kraft Heinz.
MDBAX’s 3-year and 5-year annualized returns are 9.9% and 8%, respectively, and its net expense ratio is 0.83% compared to the category average of 0.94%. MDBAX has a Zacks Mutual Fund Rank #2.
BlackRock Floating Rate Income (BFRAX - Free Report) invests the majority of its assets in floating rate investments and other economically similar investments, which enable the fund to achieve a floating rate of income. BFRAX also invests in senior floating rate loans or second lien floating rate loans.
Mitchell Garfin has been the lead manager of BFRAX since August 2018. The three top holdings for BFRAX are 2.8% in Cloud Software, 1.1% in Sunshine Luxembourg and 0.8% in Medline Borrower.
BFRAX’s 3-year and 5-year annualized returns are 4.8% and 4.1%, respectively, and its net expense ratio is 0.91% compared to the category average of 1.03%. BFRAX has a Zacks Mutual Fund Rank #1.
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3 BlackRock Mutual Funds to Buy as Rate Cuts Approach
Interest rate cuts by the Fed are approaching fast. If one goes by current market sentiment, we should see the first rate-cut announcement as early as March 2024. Inflation is in check, albeit still not down to the Fed’s target rate of 2%. Investor mood is upbeat across sectors, and in this environment, BlackRock Inc. (BLK - Free Report) , one of the world’s largest asset managers, is poised to make the most of these opportunities.
BlackRock was founded in the year 1988. Based in New York City, the company offers investment, advisory and risk management solutions in various asset classes like equity, fixed income, cash management, alternative investment and real estate. It has more than 19,000 employees and is present in more than 36 countries.
BlackRock reported that it had $9.1 trillion worth of assets under management as of Sep 30, 2023, as it beat earnings estimates in the third quarter. In the quarter, BLK reported adjusted earnings of $10.91/share, widely surpassing the Zacks Consensus Estimate of $8.47.
BLK’s initiatives to restructure the actively managed equity business are expected to continue aiding the company's growth. Another big thumbs up for the company would be coming from the crypto sector, with the SEC sending soft signals that it would stop stalling the foray of traditional companies in the digital coin market.
If the Bitcoin ETF application it filed with the SEC at the end of June 2023 bears fruit, it will also enter into and lend credence to the crypto market. Add to that strong earnings numbers and an iron-clad reputation, and the financial giant is well-positioned to counter any headwinds from global macroeconomic factors.
Hence, investing in BlackRock mutual funds may provide the much-required stability and growth potential in a market that is expected to do well in the coming months. Astute investors should consider such funds at present. Mutual funds, in general, reduce transaction costs and diversify portfolios without an array of commission charges that are mostly associated with stock purchases (read more: Mutual Funds: Advantages, Disadvantages, and How They Make Investors Money).
We have thus selected three mutual funds that boast a Zacks Mutual Fund Rank #1 (Strong Buy) or 2 (Buy), have positive three-year and five-year annualized returns and minimum initial investments within $5000 as well as carry a low expense ratio.
BlackRock Tactical Opportunities Fund (PCBSX - Free Report) seeks long-term capital appreciation by using a macro asset allocation strategy, investing different percentages of its portfolio in global stocks, bonds, money market instruments, cash and foreign currencies. The advisor may choose to invest in common stock, preferred stock and depositary receipts.
Richard Murrall has been the lead manager of PCBSX since May 2017. The three top holdings for PCBSX are 4.2% in Microsoft, 3.7% in Apple and 2.2% in Amazon.
PCBSX’s 3-year and 5-year annualized returns are 3.7% and 3.5%, respectively, and its net expense ratio is 1.10% compared to the category average of 1.52%. PCBSX has a Zacks Mutual Fund Rank #1. To see how this fund performed compared to its category, and other 1 and 2 Ranked Mutual Funds, please click here.
BlackRock Large Cap Focus Value (MDBAX - Free Report) seeks capital appreciation along with current income by investing most of its assets in large-cap equity securities and derivatives that have similar economic characteristics to such securities. MDBAX advisors primarily choose to invest in equity securities of undervalued companies.
Tony DeSpirito has been the lead manager of MDBAX since November 2019. The three top holdings for MDBAX are 3.4% in Wells Fargo, 3.2% in Citigroup and 3% in Kraft Heinz.
MDBAX’s 3-year and 5-year annualized returns are 9.9% and 8%, respectively, and its net expense ratio is 0.83% compared to the category average of 0.94%. MDBAX has a Zacks Mutual Fund Rank #2.
BlackRock Floating Rate Income (BFRAX - Free Report) invests the majority of its assets in floating rate investments and other economically similar investments, which enable the fund to achieve a floating rate of income. BFRAX also invests in senior floating rate loans or second lien floating rate loans.
Mitchell Garfin has been the lead manager of BFRAX since August 2018. The three top holdings for BFRAX are 2.8% in Cloud Software, 1.1% in Sunshine Luxembourg and 0.8% in Medline Borrower.
BFRAX’s 3-year and 5-year annualized returns are 4.8% and 4.1%, respectively, and its net expense ratio is 0.91% compared to the category average of 1.03%. BFRAX has a Zacks Mutual Fund Rank #1.
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 >>