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3 Consumer Staples Mutual Funds to Counter Market Volatility
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The fluctuations in U.S. Crude oil prices due to geopolitical tensions have sparked worries about inflation. Both U.S. Crude and Brent prices experienced a 3% decline last week. Meanwhile, inflation, which saw a drop last year has made a comeback in 2024, with the Consumer Price Index (CPI) climbing for the third consecutive month by 0.4% in March. Despite indications of three rate cuts by the year-end from the Federal Reserve, the recent uptick in inflation has created uncertainty about when these cuts might happen.
Amid this volatility and inflationary pressure, safe-haven assets such as consumer staples mutual funds provide stability and resilience. These funds concentrate on goods and services, offering potential income generation.
Thus, from an investment standpoint, we have selected three consumer staple mutual funds. These are 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 Advisor Consumer Staples (FDAGX - Free Report) fund aims for capital growth. FDAGX invests the majority of its assets in securities of companies that manufacture and market consumer staples products.
Ben Shuleva has been the lead manager of FDAGX since Dec 31, 2019. Most of the fund’s holdings were in companies like The Coca-Cola Co (14.7%), The Procter & Gamble Co (13.5%) and Keurig Dr Pepper Inc. (6.8%)of Nov 30, 2023.
FDAGX’s 3-year and 5-year returns are 5.7% and 8.7%, respectively. The annual expense ratio is 1%. FDAGX has a Zacks Mutual 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 Consumer Staples Port (FDFAX - Free Report) fund invests the majority of its assets in securities of companies primarily engaged in manufacturing, marketing or distribution of consumer staples products. FDFAX advisors also invest in U.S. and non-U.S. issuers.
Ben Shuleva been the lead manager of FDFAX since Jan 1, 2020. Most of the fund’s holdings were in companies like The Coca-Cola Co (14.7%), The Procter & Gamble Co (13.5%) and Keurig Dr Pepper Inc. (6.8%)of Nov 30, 2023.
FDFAX’s 3-year and 5-year annualized returns are 6% and 9.1%, respectively. Its net expense ratio is 0.72%. FDFAX has a Zacks Mutual Fund Rank #2.
Fidelity Advisor Consumer Staples (FDIGX - Free Report) fund invests its assets in securities of local and international issuers that are engaged in the production, sale, or distribution of consumer staples. FDIGX uses fundamental analysis to make investment decisions, taking into consideration the market and economic environment.
Ben Shuleva has been the lead manager of FDIGX since Dec 31, 2019. Most of the fund’s holdings were in companies like The Coca-Cola Co (14.7%), The Procter & Gamble Co (13.5%) and Keurig Dr Pepper Inc. (6.8%)as of Nov 30, 2023.
FDIGX’s 3-year and 5-year annualized returns are 5.9% and 9%, respectively. Its net expense ratio is 0.73%. FDIGX has a Zacks Mutual Fund Rank #2.
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3 Consumer Staples Mutual Funds to Counter Market Volatility
The fluctuations in U.S. Crude oil prices due to geopolitical tensions have sparked worries about inflation. Both U.S. Crude and Brent prices experienced a 3% decline last week. Meanwhile, inflation, which saw a drop last year has made a comeback in 2024, with the Consumer Price Index (CPI) climbing for the third consecutive month by 0.4% in March. Despite indications of three rate cuts by the year-end from the Federal Reserve, the recent uptick in inflation has created uncertainty about when these cuts might happen.
Amid this volatility and inflationary pressure, safe-haven assets such as consumer staples mutual funds provide stability and resilience. These funds concentrate on goods and services, offering potential income generation.
Thus, from an investment standpoint, we have selected three consumer staple mutual funds. These are 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 Advisor Consumer Staples (FDAGX - Free Report) fund aims for capital growth. FDAGX invests the majority of its assets in securities of companies that manufacture and market consumer staples products.
Ben Shuleva has been the lead manager of FDAGX since Dec 31, 2019. Most of the fund’s holdings were in companies like The Coca-Cola Co (14.7%), The Procter & Gamble Co (13.5%) and Keurig Dr Pepper Inc. (6.8%)of Nov 30, 2023.
FDAGX’s 3-year and 5-year returns are 5.7% and 8.7%, respectively. The annual expense ratio is 1%. FDAGX has a Zacks Mutual 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 Consumer Staples Port (FDFAX - Free Report) fund invests the majority of its assets in securities of companies primarily engaged in manufacturing, marketing or distribution of consumer staples products. FDFAX advisors also invest in U.S. and non-U.S. issuers.
Ben Shuleva been the lead manager of FDFAX since Jan 1, 2020. Most of the fund’s holdings were in companies like The Coca-Cola Co (14.7%), The Procter & Gamble Co (13.5%) and Keurig Dr Pepper Inc. (6.8%)of Nov 30, 2023.
FDFAX’s 3-year and 5-year annualized returns are 6% and 9.1%, respectively. Its net expense ratio is 0.72%. FDFAX has a Zacks Mutual Fund Rank #2.
Fidelity Advisor Consumer Staples (FDIGX - Free Report) fund invests its assets in securities of local and international issuers that are engaged in the production, sale, or distribution of consumer staples. FDIGX uses fundamental analysis to make investment decisions, taking into consideration the market and economic environment.
Ben Shuleva has been the lead manager of FDIGX since Dec 31, 2019. Most of the fund’s holdings were in companies like The Coca-Cola Co (14.7%), The Procter & Gamble Co (13.5%) and Keurig Dr Pepper Inc. (6.8%)as of Nov 30, 2023.
FDIGX’s 3-year and 5-year annualized returns are 5.9% and 9%, respectively. Its net expense ratio is 0.73%. FDIGX 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 >>