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3 Large-Cap Value Funds to Buy as Consumer Confidence Plummets
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Americans aren’t as confident about the economy as they were till a few months ago, as several factors continue to fuel uncertainty. Concerns over a shrinking job market and the impact of tariffs persist, even after the Federal Reserve lowered interest rates last month and suggested that there could be more cuts later this year.
Given this situation, investors may want to consider investing in large-cap value funds, such as Bridge Builder Large Cap Value Fund (BBVLX - Free Report) , Northern Income Equity (NOIEX - Free Report) and Dodge & Cox Stock I (DODGX - Free Report) .
Consumer Confidence Declines
Consumer confidence was 94.2 in September, down 3.6 points from the previous month and below economists’ expectations of a reading of 96, the Conference Board said on Tuesday. The Present Situation Index, which measures how consumers see the current business and labor conditions, fell 7 points to 125.4.
Short-term expectations for income, business conditions, and employment also fell to 74.8, a 1.3-point decline. Any reading below 80 suggests a higher risk of recession.
Concerns over a shrinking labor market have been a major factor in denting consumer confidence, with assessments of job availability falling for the ninth straight month. Additionally, rising prices continue to weigh on consumer spending. Tariffs imposed under President Trump have pushed up the cost of goods, and inflation remains a worry.
Last month, the Federal Reserve cut interest rates by 25 basis points to support the economy after a weak jobs report and signaled the possibility of two more quarter-point reductions later this year. Despite these efforts, economic concerns have once again created market volatility.
3 Best Choices
We've identified three large-cap value mutual funds that have given impressive annualized returns over 3-year and 5-year periods. These funds also hold a Zacks Mutual Fund Rank of #1 (Strong Buy), require an initial investment of no more than $5,000 and have a low expense ratio.
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 why one should be parking money in mutual funds (read more: Mutual Funds: Advantages, Disadvantages, and How They Make Investors Money).
Bridge Builder Large Cap Value Fund aims for capital appreciation. BBVLX invests the majority of its assets in securities of large-capitalization companies and other instruments, such as certain investment companies, with economic characteristics that seek to track the performance of securities of large-capitalization companies.
Bridge Builder Large Cap Value Fund has 3-year and 5-year annualized returns of 13.5% and 15%, respectively. BBVLX has a Zacks Mutual Fund Rank #2 and an annual expense ratio of 0.22%, which is lower than its category average.
To see how this fund performed compared in its category, and other 1 and 2 Ranked Mutual Funds, please click here.
Northern Income Equity fund seeks to provide a high level of current income with long-term capital appreciation as a secondary objective. NOIEX’s approach is to identify the securities of companies that generate high current yields and offer prospects for growth and possible capital appreciation.
NOIEX’s 3-year and 5-year annualized returns are 18.7% and 15%, respectively. Northern Income Equity fund has a Zacks Mutual Fund Rank #1 and an annual expense ratio of 0.49%, which is lower than its category average.
To see how this fund performed compared to its category, and other 1 and 2 Ranked Mutual Funds, please click here.
Dodge & Cox Stock I fund seeks long-term growth of principal and income. A secondary objective is to achieve a reasonable current income. DODGX invests primarily in a broadly diversified portfolio of common stocks.
DODGX’s 3-year and 5-year annualized returns are 9.9% and 17%, respectively. Dodge & Cox Stock I fund has a Zacks Mutual Fund Rank #1 and an annual expense ratio of 0.51%.
To see how this fund performed compared to its category, and other 1 and 2 Ranked Mutual Funds, please click here.
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3 Large-Cap Value Funds to Buy as Consumer Confidence Plummets
Americans aren’t as confident about the economy as they were till a few months ago, as several factors continue to fuel uncertainty. Concerns over a shrinking job market and the impact of tariffs persist, even after the Federal Reserve lowered interest rates last month and suggested that there could be more cuts later this year.
Given this situation, investors may want to consider investing in large-cap value funds, such as Bridge Builder Large Cap Value Fund (BBVLX - Free Report) , Northern Income Equity (NOIEX - Free Report) and Dodge & Cox Stock I (DODGX - Free Report) .
Consumer Confidence Declines
Consumer confidence was 94.2 in September, down 3.6 points from the previous month and below economists’ expectations of a reading of 96, the Conference Board said on Tuesday. The Present Situation Index, which measures how consumers see the current business and labor conditions, fell 7 points to 125.4.
Short-term expectations for income, business conditions, and employment also fell to 74.8, a 1.3-point decline. Any reading below 80 suggests a higher risk of recession.
Concerns over a shrinking labor market have been a major factor in denting consumer confidence, with assessments of job availability falling for the ninth straight month. Additionally, rising prices continue to weigh on consumer spending. Tariffs imposed under President Trump have pushed up the cost of goods, and inflation remains a worry.
Last month, the Federal Reserve cut interest rates by 25 basis points to support the economy after a weak jobs report and signaled the possibility of two more quarter-point reductions later this year. Despite these efforts, economic concerns have once again created market volatility.
3 Best Choices
We've identified three large-cap value mutual funds that have given impressive annualized returns over 3-year and 5-year periods. These funds also hold a Zacks Mutual Fund Rank of #1 (Strong Buy), require an initial investment of no more than $5,000 and have a low expense ratio.
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 why one should be parking money in mutual funds (read more: Mutual Funds: Advantages, Disadvantages, and How They Make Investors Money).
Bridge Builder Large Cap Value Fund aims for capital appreciation. BBVLX invests the majority of its assets in securities of large-capitalization companies and other instruments, such as certain investment companies, with economic characteristics that seek to track the performance of securities of large-capitalization companies.
Bridge Builder Large Cap Value Fund has 3-year and 5-year annualized returns of 13.5% and 15%, respectively. BBVLX has a Zacks Mutual Fund Rank #2 and an annual expense ratio of 0.22%, which is lower than its category average.
To see how this fund performed compared in its category, and other 1 and 2 Ranked Mutual Funds, please click here.
Northern Income Equity fund seeks to provide a high level of current income with long-term capital appreciation as a secondary objective. NOIEX’s approach is to identify the securities of companies that generate high current yields and offer prospects for growth and possible capital appreciation.
NOIEX’s 3-year and 5-year annualized returns are 18.7% and 15%, respectively. Northern Income Equity fund has a Zacks Mutual Fund Rank #1 and an annual expense ratio of 0.49%, which is lower than its category average.
To see how this fund performed compared to its category, and other 1 and 2 Ranked Mutual Funds, please click here.
Dodge & Cox Stock I fund seeks long-term growth of principal and income. A secondary objective is to achieve a reasonable current income. DODGX invests primarily in a broadly diversified portfolio of common stocks.
DODGX’s 3-year and 5-year annualized returns are 9.9% and 17%, respectively. Dodge & Cox Stock I fund has a Zacks Mutual Fund Rank #1 and an annual expense ratio of 0.51%.
To see how this fund performed compared to its category, and other 1 and 2 Ranked Mutual Funds, please click here.
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 >>