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3 BlackRock Mutual Funds to Buy on Sustained Economic Revival
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Currently, market participants are expecting the first rate cut from the Federal Reserve as early as June 2024. Inflation is in check, albeit still not down to the Fed’s target rate of 2%. Investor mood is upbeat across sectors despite the early January corrections. The U.S. economy grew 3.1% in 2023, with a strong labor market and consumer spending upending any talks of a recession. 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 $10 trillion worth of assets under management as of Dec 31, 2023, as it beat earnings estimates in the fourth quarter. In the quarter, BLK reported adjusted earnings of $9.66/share, widely surpassing the Zacks Consensus Estimate of $8.84.
BLK’s initiatives to strengthen the iShares and ETF operations and restructure its actively managed equity business are expected to continue aiding the company's growth. Also, recently, BlackRock has entered into an agreement with Global Infrastructure Partners to acquire the leading global independent infrastructure manager for $3 billion in cash and approximately 12 million BLK shares.
BLK’s exploits in the crypto scene have also been noteworthy. With the SEC finally allowing spot Bitcoin ETFs to go mainstream in January, BlackRock has emerged as the most prominent holder of Bitcoins. It is leading the charge in the ETF race with $2.7 billion in investments as of Jan 31.
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 Investor (PCBAX - 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 PCBAX since May 2017. The three top holdings for PCBAX are 3.6% in Apple, 3.3% in Microsoft and 1.6% in Amazon.
PCBAX’s 3-year and 5-year annualized returns are 2.8% and 3.3%, respectively, and its net expense ratio is 1.12% compared to the category average of 1.52%. PCBAX 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 (MRBVX - 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. MRBVX advisors primarily choose to invest in equity securities of undervalued companies.
Tony DeSpirito has been the lead manager of MRBVX since November 2019. The three top holdings for MRBVX are 3.2% in Wells Fargo, 3% in Kraft Heinz and 2.9% in Shell.
MRBVX’s 3-year and 5-year annualized returns are 10.1% and 11.1%, respectively, and its net expense ratio is 0.84% compared to the category average of 0.94%. MRBVX has a Zacks Mutual Fund Rank #1.
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 1% in Cloud Software, 0.9% in Sunshine Luxembourg and 0.8% in Equinox.
BFRAX’s 3-year and 5-year annualized returns are 4.9% and 5%, respectively, and its net expense ratio is 0.69% 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 on Sustained Economic Revival
Currently, market participants are expecting the first rate cut from the Federal Reserve as early as June 2024. Inflation is in check, albeit still not down to the Fed’s target rate of 2%. Investor mood is upbeat across sectors despite the early January corrections. The U.S. economy grew 3.1% in 2023, with a strong labor market and consumer spending upending any talks of a recession. 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 $10 trillion worth of assets under management as of Dec 31, 2023, as it beat earnings estimates in the fourth quarter. In the quarter, BLK reported adjusted earnings of $9.66/share, widely surpassing the Zacks Consensus Estimate of $8.84.
BLK’s initiatives to strengthen the iShares and ETF operations and restructure its actively managed equity business are expected to continue aiding the company's growth. Also, recently, BlackRock has entered into an agreement with Global Infrastructure Partners to acquire the leading global independent infrastructure manager for $3 billion in cash and approximately 12 million BLK shares.
BLK’s exploits in the crypto scene have also been noteworthy. With the SEC finally allowing spot Bitcoin ETFs to go mainstream in January, BlackRock has emerged as the most prominent holder of Bitcoins. It is leading the charge in the ETF race with $2.7 billion in investments as of Jan 31.
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 Investor (PCBAX - 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 PCBAX since May 2017. The three top holdings for PCBAX are 3.6% in Apple, 3.3% in Microsoft and 1.6% in Amazon.
PCBAX’s 3-year and 5-year annualized returns are 2.8% and 3.3%, respectively, and its net expense ratio is 1.12% compared to the category average of 1.52%. PCBAX 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 (MRBVX - 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. MRBVX advisors primarily choose to invest in equity securities of undervalued companies.
Tony DeSpirito has been the lead manager of MRBVX since November 2019. The three top holdings for MRBVX are 3.2% in Wells Fargo, 3% in Kraft Heinz and 2.9% in Shell.
MRBVX’s 3-year and 5-year annualized returns are 10.1% and 11.1%, respectively, and its net expense ratio is 0.84% compared to the category average of 0.94%. MRBVX has a Zacks Mutual Fund Rank #1.
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 1% in Cloud Software, 0.9% in Sunshine Luxembourg and 0.8% in Equinox.
BFRAX’s 3-year and 5-year annualized returns are 4.9% and 5%, respectively, and its net expense ratio is 0.69% 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 >>