We use cookies to understand how you use our site and to improve your experience. This includes personalizing content and advertising. To learn more, click here. By continuing to use our site, you accept our use of cookies, revised Privacy Policy and Terms of Service.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
3 Communication Services Funds to Bet Your Money On
Read MoreHide Full Article
Communication Services has been one of the best-performing sectors this year, gaining 36.5% in the first half, just behind the tech sector. This sector was created in 2018 by taking some of the then FANG stocks and joining them with the erstwhile telecom sector. Companies in the media, entertainment, interactive gaming, information creation and information distribution businesses also belong to the communications sector.
Some companies in this varied mash-up of tech and discretionary stocks are more economically sensitive than others and include high-growth, cyclical stocks of companies that see massive decline in demand when an economy enters a downturn. However, the sector also comprises some much less economically sensitive companies that are defensive in nature, like mobile phone and home Internet services.
This year, the sector has done very well primarily because of its close link to the tech sector. With the Fed finally loosening its grip on the monetary policy, recession fears have taken a bit of a backseat, which can only aid the sector.Funds focused on stocks from this diverse group, thus, provide a great opportunity to investors looking to add solidity and fast growth to their portfolio.
Hence, astute investors should invest in communication services 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 four such diversified bond mutual funds that boast a Zacks Mutual Fund Rank #1 (Strong Buy), 2 (Buy), have positive three-year and five-year annualized returns, minimum initial investments within $5000 and carry a low expense ratio.
Fidelity Select Wireless (FWRLX - Free Report) primarily invests in common stocks of companies principally engaged in activities relating to wireless communications services or products. For its investment purpose, FWRLX uses fundamental analysis of factors such as each issuer's financial condition, industry position, as well as market and economic conditions.
Matthew Drukker has been the lead manager of FWRLX since Oct 26, 2016. Three top holdings for the fund are Apple (13.1%), T-Mobile (11.4% ) and American Tower (9.2%).
FWRLX’s 3-year and 5-year annualized returns are 4.7% and 9.7%, respectively. Its net expense ratio is 0.79% compared with the category average of 0.89%. FWRLX has a Zacks Mutual Fund Rank #1. To see how this fund performed compared in its category, and other 1 and 2 Ranked Mutual Funds, please click here.
Fidelity Telecom and Utilities Fund (FIUIX - Free Report) primarily invests in common stocks of companies principally engaged in activities relating to telecommunications services and utilities. For its investment purpose, FIUIX uses fundamental analysis of factors such as each issuer's financial condition, industry position, as well as market and economic conditions.
Douglas Simmons has been the lead manager of FIUIX since Sep 29, 2005. Three top holdings for the fund are T-Mobile (11.3%), AT&T (11.1%) and Verizon Communications (4.9%).
FIUIX’s 3-year and 5-year annualized returns are 5.8% and 6.7%, respectively. Its net expense ratio is 0.73% compared to the category average of 0.94%. FIUIX has a Zacks Mutual Fund Rank #2.
Fidelity Select Communication Services Portfolio (FBMPX - Free Report) primarily invests in common stocks of companies principally engaged in the development, production, or distribution of communication services. For its investment purpose, FBMPX uses fundamental analysis of factors such as each issuer's financial condition and industry position, as well as market and economic conditions.
Matthew Drukker has been the lead manager of FBMPX since Nov 30, 2018. Three top holdings for the fund are in Meta Platforms (17.8%), Alphabet (17.8%) and Netflix (8.9%).
FBMPX’s 3-year and 5-year annualized returns are 6.5% and 11%, respectively. Its net expense ratio is 0.79% compared to the category average of 0.89%. FBMPX 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 >>
See More Zacks Research for These Tickers
Normally $25 each - click below to receive one report FREE:
Image: Bigstock
3 Communication Services Funds to Bet Your Money On
Communication Services has been one of the best-performing sectors this year, gaining 36.5% in the first half, just behind the tech sector. This sector was created in 2018 by taking some of the then FANG stocks and joining them with the erstwhile telecom sector. Companies in the media, entertainment, interactive gaming, information creation and information distribution businesses also belong to the communications sector.
Some companies in this varied mash-up of tech and discretionary stocks are more economically sensitive than others and include high-growth, cyclical stocks of companies that see massive decline in demand when an economy enters a downturn. However, the sector also comprises some much less economically sensitive companies that are defensive in nature, like mobile phone and home Internet services.
This year, the sector has done very well primarily because of its close link to the tech sector. With the Fed finally loosening its grip on the monetary policy, recession fears have taken a bit of a backseat, which can only aid the sector.Funds focused on stocks from this diverse group, thus, provide a great opportunity to investors looking to add solidity and fast growth to their portfolio.
Hence, astute investors should invest in communication services 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 four such diversified bond mutual funds that boast a Zacks Mutual Fund Rank #1 (Strong Buy), 2 (Buy), have positive three-year and five-year annualized returns, minimum initial investments within $5000 and carry a low expense ratio.
Fidelity Select Wireless (FWRLX - Free Report) primarily invests in common stocks of companies principally engaged in activities relating to wireless communications services or products. For its investment purpose, FWRLX uses fundamental analysis of factors such as each issuer's financial condition, industry position, as well as market and economic conditions.
Matthew Drukker has been the lead manager of FWRLX since Oct 26, 2016. Three top holdings for the fund are Apple (13.1%), T-Mobile (11.4% ) and American Tower (9.2%).
FWRLX’s 3-year and 5-year annualized returns are 4.7% and 9.7%, respectively. Its net expense ratio is 0.79% compared with the category average of 0.89%. FWRLX has a Zacks Mutual Fund Rank #1. To see how this fund performed compared in its category, and other 1 and 2 Ranked Mutual Funds, please click here.
Fidelity Telecom and Utilities Fund (FIUIX - Free Report) primarily invests in common stocks of companies principally engaged in activities relating to telecommunications services and utilities. For its investment purpose, FIUIX uses fundamental analysis of factors such as each issuer's financial condition, industry position, as well as market and economic conditions.
Douglas Simmons has been the lead manager of FIUIX since Sep 29, 2005. Three top holdings for the fund are T-Mobile (11.3%), AT&T (11.1%) and Verizon Communications (4.9%).
FIUIX’s 3-year and 5-year annualized returns are 5.8% and 6.7%, respectively. Its net expense ratio is 0.73% compared to the category average of 0.94%. FIUIX has a Zacks Mutual Fund Rank #2.
Fidelity Select Communication Services Portfolio (FBMPX - Free Report) primarily invests in common stocks of companies principally engaged in the development, production, or distribution of communication services. For its investment purpose, FBMPX uses fundamental analysis of factors such as each issuer's financial condition and industry position, as well as market and economic conditions.
Matthew Drukker has been the lead manager of FBMPX since Nov 30, 2018. Three top holdings for the fund are in Meta Platforms (17.8%), Alphabet (17.8%) and Netflix (8.9%).
FBMPX’s 3-year and 5-year annualized returns are 6.5% and 11%, respectively. Its net expense ratio is 0.79% compared to the category average of 0.89%. FBMPX 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 >>