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4 Funds to Gain From Robust Independence Day Spending
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Per the latest Independence Day spending survey from the National Retail Federation (NRF) and Prosper Insights & Analytics, an incredible number of Americans are expected to participate in Independence Day celebrations this year. The survey also states that spending on food would breach past $6 billion across the country.
Meanwhile, consumer spending on leisure goods, food and clothing has remained largely robust in the past few months. Under such circumstances, investing in mutual funds with significant exposure to leisure, retail and transportation companies seems prudent.
Despite a Dip, Independence Day Spending Still Incredibly High
The survey states that approximately 86% of the total number of Americans has planned to celebrate this year’s Independence Day. However, this figure is lower than 87% from 2018. Analysts have blamed it on the timing rather than pointing at any fundamental weakness. The 4th of July falls on a Thursday this year and the fact that it is in the middle of the week has discouraged a few to actively participate in the celebrations.
That said, the NRF still predicts that total spending on food on July 4th will hit approximately $6.8 billion. Further, about 61% of the total respondents stated that they planned to organize or attend cookouts and barbecues. As a matter of fact, average per capita spending on food for the day is expected to be $73.33.
A lot of Americans are also expected to attend fireworks, indulge in patriotic decorations and clothes or travel. Approximately 26% of the population is expected to purchase additional patriotic merchandize this year.
Other sources of spending during the holiday include fireworks, patriotic decorations and apparel, and travel. Further, the Florida Retail Federation (FRF) is also expecting record-breaking holiday spending in the Sunshine State this 4th of July.
4 Best Funds to Buy Now
Given such circumstances, we have highlighted four mutual funds carrying a Zacks Mutual Fund Rank #1 (Strong Buy) or 2 (Buy) that are poised to gain from such factors. Moreover, these funds have encouraging three and five-year returns. Additionally, the minimum initial investment is within $5000.
We expect these funds to outperform their peers in the future. Remember, the goal of the Zacks Mutual Fund Rank is to guide investors to identify potential winners and losers. Unlike most of the fund-rating systems, the Zacks Mutual Fund Rank is not just focused on past performance, but also on the likely future success of the fund.
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).
Fidelity Select Leisure Fund (FDLSX - Free Report) seeks capital appreciation. FDLSX normally invests at least 80% of its assets in common stocks of companies principally engaged in the design, production, or distribution of goods or services in the leisure industries. The fund offers dividends and capital gains twice a year in April and December.
This Sector - Other product has a history of positive total returns for over 10 years. Specifically, the fund has returned 14.5% over the three-year and 10.6% over the five-year benchmarks. To see how this fund performed compared to its category, and other #1 and 2 Ranked Mutual Funds, please click here.
FDLSX has a Zacks Rank #1 and an annual expense ratio of 0.76%, which is below the category average of 1.15%.
TIAA-CREF Mid-Cap Growth Fund Retail Class (TCMGX - Free Report) aims for favorable total return over a long period of time. The fund invests the majority of its assets in securities of medium-sized domestic companies as defined by the Russell Midcap Growth Index, which the investment adviser believes has the opportunity for growth.
This Zacks sector – Mid Cap Growth product has a history of positive total returns for over 10 years. Specifically, the fund has returned 12.6% over the three-year and 8.6% over the five-year benchmarks.To see how this fund performed compared in its category, and other 1 and 2 Ranked Mutual Funds, please click here.
TCMGX has a Zacks Rank #1 and an annual expense ratio of 0.77%, which is below the category average of 1.18%.
Loomis Sayles Small Cap Growth Fund Retail Class (LCGRX - Free Report) seeks long-term capital appreciation by investing 80% of its net assets in securities of small-cap companies.
This Zacks sector – Small Cap Growth product has a history of positive total returns for more than 10 years. Specifically, the fund has returned 15.7% over the three-year and 11% over the five-year benchmarks.To see how this fund performed compared in its category, and other 1 and 2 Ranked Mutual Funds, please click here.
LCGRX has a Zacks Mutual Fund Rank #2 and an annual expense ratio of 1.19%, which is below the category average of 1.21%.
Fidelity Select Transportation Portfolio (FSRFX - Free Report) fund aims for capital growth. The fund invests the majority of its assets in securities of companies primarily engaged in providing transportation services or companies engaged in designing, manufacturing, distribution and marketing of transportation equipment. The non-diversified fund mostly invests in common stocks of companies and may invest in U.S. and non-U.S. companies.
This Zacks sector – Other product has a history of positive total returns for more than 10 years. Specifically, the fund has returned 12.4% over the three-year and 7.3% over the five-year benchmarks.To see how this fund performed compared in its category, and other 1 and 2 Ranked Mutual Funds, please click here.
FSRFX carries a Mutual Fund Rank #2 and an annual expense ratio of 0.79%, which is below the category average of 1.01%.
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4 Funds to Gain From Robust Independence Day Spending
Per the latest Independence Day spending survey from the National Retail Federation (NRF) and Prosper Insights & Analytics, an incredible number of Americans are expected to participate in Independence Day celebrations this year. The survey also states that spending on food would breach past $6 billion across the country.
Meanwhile, consumer spending on leisure goods, food and clothing has remained largely robust in the past few months. Under such circumstances, investing in mutual funds with significant exposure to leisure, retail and transportation companies seems prudent.
Despite a Dip, Independence Day Spending Still Incredibly High
The survey states that approximately 86% of the total number of Americans has planned to celebrate this year’s Independence Day. However, this figure is lower than 87% from 2018. Analysts have blamed it on the timing rather than pointing at any fundamental weakness. The 4th of July falls on a Thursday this year and the fact that it is in the middle of the week has discouraged a few to actively participate in the celebrations.
That said, the NRF still predicts that total spending on food on July 4th will hit approximately $6.8 billion. Further, about 61% of the total respondents stated that they planned to organize or attend cookouts and barbecues. As a matter of fact, average per capita spending on food for the day is expected to be $73.33.
A lot of Americans are also expected to attend fireworks, indulge in patriotic decorations and clothes or travel. Approximately 26% of the population is expected to purchase additional patriotic merchandize this year.
Other sources of spending during the holiday include fireworks, patriotic decorations and apparel, and travel. Further, the Florida Retail Federation (FRF) is also expecting record-breaking holiday spending in the Sunshine State this 4th of July.
4 Best Funds to Buy Now
Given such circumstances, we have highlighted four mutual funds carrying a Zacks Mutual Fund Rank #1 (Strong Buy) or 2 (Buy) that are poised to gain from such factors. Moreover, these funds have encouraging three and five-year returns. Additionally, the minimum initial investment is within $5000.
We expect these funds to outperform their peers in the future. Remember, the goal of the Zacks Mutual Fund Rank is to guide investors to identify potential winners and losers. Unlike most of the fund-rating systems, the Zacks Mutual Fund Rank is not just focused on past performance, but also on the likely future success of the fund.
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).
Fidelity Select Leisure Fund (FDLSX - Free Report) seeks capital appreciation. FDLSX normally invests at least 80% of its assets in common stocks of companies principally engaged in the design, production, or distribution of goods or services in the leisure industries. The fund offers dividends and capital gains twice a year in April and December.
This Sector - Other product has a history of positive total returns for over 10 years. Specifically, the fund has returned 14.5% over the three-year and 10.6% over the five-year benchmarks. To see how this fund performed compared to its category, and other #1 and 2 Ranked Mutual Funds, please click here.
FDLSX has a Zacks Rank #1 and an annual expense ratio of 0.76%, which is below the category average of 1.15%.
TIAA-CREF Mid-Cap Growth Fund Retail Class (TCMGX - Free Report) aims for favorable total return over a long period of time. The fund invests the majority of its assets in securities of medium-sized domestic companies as defined by the Russell Midcap Growth Index, which the investment adviser believes has the opportunity for growth.
This Zacks sector – Mid Cap Growth product has a history of positive total returns for over 10 years. Specifically, the fund has returned 12.6% over the three-year and 8.6% over the five-year benchmarks.To see how this fund performed compared in its category, and other 1 and 2 Ranked Mutual Funds, please click here.
TCMGX has a Zacks Rank #1 and an annual expense ratio of 0.77%, which is below the category average of 1.18%.
Loomis Sayles Small Cap Growth Fund Retail Class (LCGRX - Free Report) seeks long-term capital appreciation by investing 80% of its net assets in securities of small-cap companies.
This Zacks sector – Small Cap Growth product has a history of positive total returns for more than 10 years. Specifically, the fund has returned 15.7% over the three-year and 11% over the five-year benchmarks.To see how this fund performed compared in its category, and other 1 and 2 Ranked Mutual Funds, please click here.
LCGRX has a Zacks Mutual Fund Rank #2 and an annual expense ratio of 1.19%, which is below the category average of 1.21%.
Fidelity Select Transportation Portfolio (FSRFX - Free Report) fund aims for capital growth. The fund invests the majority of its assets in securities of companies primarily engaged in providing transportation services or companies engaged in designing, manufacturing, distribution and marketing of transportation equipment. The non-diversified fund mostly invests in common stocks of companies and may invest in U.S. and non-U.S. companies.
This Zacks sector – Other product has a history of positive total returns for more than 10 years. Specifically, the fund has returned 12.4% over the three-year and 7.3% over the five-year benchmarks.To see how this fund performed compared in its category, and other 1 and 2 Ranked Mutual Funds, please click here.
FSRFX carries a Mutual Fund Rank #2 and an annual expense ratio of 0.79%, which is below the category average of 1.01%.
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 >>