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The United States added a record number of new jobs in July, thanks to companies’ strong hiring despite fears of a global economic slowdown and the continuing U.S.-China trade fiasco. Therefore, it is reasonable to invest in mutual funds that invest heavily in sectors that added maximum new jobs last month.
Labor Force Hits Record High in July
The U.S. economy created an impressive 164,000 new jobs in July. This stellar jobs report indicated a strong labor market in the country, which has slowed little despite an array of new challenges the economy is facing today.
The 164,000 newly created jobs were only 1000 below analyst expectations. July’s job growth was on par with the previous six months of the year with broad-based job additions.
In fact, professional and business services once again topped in terms of new job gains, with 31,000 new job roles in July. The healthcare sector increased employment by 30,000 workers and social assistance services added 20,000 new jobs. Financial services gained 18,000 new employees while the manufacturing sector added 16,000.
Strong job growth wasn’t the only good news in July. Unemployment rate remained unchanged and wages continued to rise. While the former held its ground at 3.7%, mainly driven by an addition of 370,000 new workers in July, the latter registered 3.2% gain on a year-over-year basis.
In addition, the real unemployment rate, U6, skid to 7%, its lowest since December 2000. U6 is a wider measure of unemployment, which also takes into account discouraged workers and the underemployed.
Our Choices
We have, thus, selected four mutual funds that could stand to gain from July’s impressive jobs report. All these funds carry a Zacks Mutual Fund Rank #1 (Strong Buy). Moreover, these funds have encouraging year-to-date returns. Additionally, the minimum initial investment is less than $5000. We expect these funds to outperform their peers in the future.
Now we come to the most vital question: 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).
T. ROWE PRICE New Horizons Fund (PRNHX - Free Report) aims for capital growth over a long period of time. The fund mostly invests in common stocks of small-capitalization companies. The majority of the fund’s assets are invested in securities of a diversified group of small-capitalization and emerging growth companies. The fund has 11.81% of its assets invested in the services sector, with securities of companies such as TransUnion and Booz Allen Hamilton in its top 10 holdings.
This Zacks sector – Small Cap Growth fund has a history of positive total returns for more than 10 years. To see how this fund performed compared in its category, and other 1 and 2 Ranked Mutual Funds, please click here.
PRNHX has an annual expense ratio of 0.77%, which is below the category average of 1.17%. It has year-to-date returns of 30.5%.The fund has a minimum initial investment of $2500.
Fidelity Select Consumer Finance Portfolio (FSVLX - Free Report) fund seeks capital growth. The fund invests the majority of its assets in securities of companies principally engaged in activities associated withconsumer finance. The fund mostly invests in common stocks and may invest in U.S. and non-U.S. companies alike.
This Zacks sector – Finance fund has a history of positive total returns for more than 10 years. To see how this fund performed compared in its category, and other 1 and 2 Ranked Mutual Funds, please click here.
FSVLX has an annual expense ratio of 0.87%, which is below the category average of 1.43%. It has year-to-date returns of 26.1%.The fund has no minimum initial investment.
Janus Henderson Global Life Sciences Fund Class A (JFNAX - Free Report) aims for consistent returns by investing in healthcare companies. The fund invests across a diversified group of pharmaceutical and biotechnology companies, and providers of medical services and devices.
This Zacks sector – Health fund has a history of positive total returns for more than 10 years. To see how this fund performed compared in its category, and other 1 and 2 Ranked Mutual Funds, please click here.
JFNAX has an annual expense ratio of 0.99%, which is below the category average of 1.23%. It has year-to-date returns of 16.2%.The fund has a minimum initial investment of $2500.
T. ROWE PRICE Health Sciences Fund (PRHSX - Free Report) seeks long-term growth of capital. The fund invests most of its assets in common stocks of companies that are engaged in various operations in the healthcare industry. These companies are mainly pharmaceuticals, healthcare services, providers of medical products and devices and biotechnology companies.
This Zacks sector – Health fund has a history of positive total returns for more than 10 years. To see how this fund performed compared in its category, and other 1 and 2 Ranked Mutual Funds, please click here.
PRHSX has an annual expense ratio of 0.77%, which is below the category average of 1.23%. It has year-to-date returns of 17.5%.The fund has a minimum initial investment of $2500.
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4 Top Funds to Buy on a Hearty July Jobs Report
The United States added a record number of new jobs in July, thanks to companies’ strong hiring despite fears of a global economic slowdown and the continuing U.S.-China trade fiasco. Therefore, it is reasonable to invest in mutual funds that invest heavily in sectors that added maximum new jobs last month.
Labor Force Hits Record High in July
The U.S. economy created an impressive 164,000 new jobs in July. This stellar jobs report indicated a strong labor market in the country, which has slowed little despite an array of new challenges the economy is facing today.
The 164,000 newly created jobs were only 1000 below analyst expectations. July’s job growth was on par with the previous six months of the year with broad-based job additions.
In fact, professional and business services once again topped in terms of new job gains, with 31,000 new job roles in July. The healthcare sector increased employment by 30,000 workers and social assistance services added 20,000 new jobs. Financial services gained 18,000 new employees while the manufacturing sector added 16,000.
Strong job growth wasn’t the only good news in July. Unemployment rate remained unchanged and wages continued to rise. While the former held its ground at 3.7%, mainly driven by an addition of 370,000 new workers in July, the latter registered 3.2% gain on a year-over-year basis.
In addition, the real unemployment rate, U6, skid to 7%, its lowest since December 2000. U6 is a wider measure of unemployment, which also takes into account discouraged workers and the underemployed.
Our Choices
We have, thus, selected four mutual funds that could stand to gain from July’s impressive jobs report. All these funds carry a Zacks Mutual Fund Rank #1 (Strong Buy). Moreover, these funds have encouraging year-to-date returns. Additionally, the minimum initial investment is less than $5000. We expect these funds to outperform their peers in the future.
Now we come to the most vital question: 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).
T. ROWE PRICE New Horizons Fund (PRNHX - Free Report) aims for capital growth over a long period of time. The fund mostly invests in common stocks of small-capitalization companies. The majority of the fund’s assets are invested in securities of a diversified group of small-capitalization and emerging growth companies. The fund has 11.81% of its assets invested in the services sector, with securities of companies such as TransUnion and Booz Allen Hamilton in its top 10 holdings.
This Zacks sector – Small Cap Growth fund has a history of positive total returns for more than 10 years. To see how this fund performed compared in its category, and other 1 and 2 Ranked Mutual Funds, please click here.
PRNHX has an annual expense ratio of 0.77%, which is below the category average of 1.17%. It has year-to-date returns of 30.5%.The fund has a minimum initial investment of $2500.
Fidelity Select Consumer Finance Portfolio (FSVLX - Free Report) fund seeks capital growth. The fund invests the majority of its assets in securities of companies principally engaged in activities associated withconsumer finance. The fund mostly invests in common stocks and may invest in U.S. and non-U.S. companies alike.
This Zacks sector – Finance fund has a history of positive total returns for more than 10 years. To see how this fund performed compared in its category, and other 1 and 2 Ranked Mutual Funds, please click here.
FSVLX has an annual expense ratio of 0.87%, which is below the category average of 1.43%. It has year-to-date returns of 26.1%.The fund has no minimum initial investment.
Janus Henderson Global Life Sciences Fund Class A (JFNAX - Free Report) aims for consistent returns by investing in healthcare companies. The fund invests across a diversified group of pharmaceutical and biotechnology companies, and providers of medical services and devices.
This Zacks sector – Health fund has a history of positive total returns for more than 10 years. To see how this fund performed compared in its category, and other 1 and 2 Ranked Mutual Funds, please click here.
JFNAX has an annual expense ratio of 0.99%, which is below the category average of 1.23%. It has year-to-date returns of 16.2%.The fund has a minimum initial investment of $2500.
T. ROWE PRICE Health Sciences Fund (PRHSX - Free Report) seeks long-term growth of capital. The fund invests most of its assets in common stocks of companies that are engaged in various operations in the healthcare industry. These companies are mainly pharmaceuticals, healthcare services, providers of medical products and devices and biotechnology companies.
This Zacks sector – Health fund has a history of positive total returns for more than 10 years. To see how this fund performed compared in its category, and other 1 and 2 Ranked Mutual Funds, please click here.
PRHSX has an annual expense ratio of 0.77%, which is below the category average of 1.23%. It has year-to-date returns of 17.5%.The fund has a minimum initial investment of $2500.
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 >>