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3 BlackRock Mutual Funds to Buy With Rate Cuts on the Horizon
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In recent days, the Federal Reserve has been sending dovish signals about monetary policy. Fed Chair Jerome Powell has, in fact, gone on to say that the central bank would not wait for inflation to come down to the target rate of 2%, something the Fed has been insisting on all this while before cutting interest rates.
Inflation has been slowing down in recent months and other other economic indicators have been suggesting that the time may be ripe for the first rate cut. Market participants have been expecting the first rate cut to be in September for some time now.
Yet, the financial sector has thrived over the past 12 months, with the Fed continuing to keep the rate “higher for longer.” The Financial Select Sector SPDR (XLF) has grown 14.6% year to date and 22.2% over the 12 months ending on Jul 25, 2024. In this environment, BlackRock Inc. BLK, one of the world’s largest asset managers, is poised to do well.
BlackRock was founded in 1988. Based in New York City, the company offers investment, advisory and risk management solutions in various asset classes like equity, fixed income, cash management, alternative investment and real estate. It has more than 19,000 employees and is present in more than 36 countries.
Mid-July, BlackRock reported that it had $10.7 trillion worth of assets under management as of Jun 30, 2024. BLK reported second-quarter 2024 adjusted earnings of $10.36 per share, surpassing the Zacks Consensus Estimate of $9.96. Revenues in the quarter came in at $4.81 billion, lagging the Zacks Consensus Estimate of $4.86 billion. However, the figure increased 8% year over year.
BLK’s continued efforts to strengthen the iShares and ETF operations and restructure its actively managed equity business are expected to aid the company's growth. Also, recently, BlackRock has entered into an agreement with Global Infrastructure Partners to acquire the leading global independent infrastructure manager for $3 billion in cash and approximately 12 million BLK shares. It is also expected to acquire Preqin.
BLK’s exploits in the crypto scene have also been noteworthy. The company is largely credited with rekindling interest in launching spot Bitcoin ETFs when it filed to launch a product in June 2023. With the SEC finally allowing spot Bitcoin ETFs to go mainstream in January, BlackRock has emerged as one of the most prominent holders of Bitcoins.
Hence, investing in BlackRock mutual funds may provide the much-required stability and growth potential in a market that is expected to do well in the coming months. Astute investors should consider such 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 three mutual funds that boast a Zacks Mutual Fund Rank #1 (Strong Buy) or 2 (Buy), have positive three-year and five-year annualized returns and minimum initial investments within $5000, as well as carry a low expense ratio.
BlackRock Advantage Large Cap Group Investor (BMCAX - Free Report) seeks long-term capital appreciation by investing in large-cap equity securities of U.S. issuers and derivatives that have similar economic characteristics. BMCAX advisors define large-cap as those equity securities that, at the time of purchase, have a market capitalization within the range of companies included in the Russell 1000 Growth Index
Raffaele Savi has been the lead manager of BMCAX since June 2017. The three top holdings for BMCAX are Microsoft (13.1%), Apple (10.4%) and Amazon (5%).
BMCAX’s 3-year and 5-year annualized returns are 9.2% and 16.9%, respectively, and its net expense ratio is 0.87%. BMCAX has a Zacks Mutual Fund Rank #1. To see how this fund performed compared to its category, and other 1 and 2 Ranked Mutual Funds, please click here.
BlackRock Allocation Target Shares (BATPX - Free Report) engages in short-selling of U.S. Treasury securities and invests in derivatives that provide returns that are inverse to those available by investing directly in U.S. Treasury securities.
Scott MacLellan has been the lead manager of BATPX since October 2020. The three top holdings for BATPX are U.S. 5-Year Note Sep 24, U.S. 2-Year Note Sep 24 and U.S. 10-Year Treasury Note Future Sept 24.
BATPX’s 3-year and 5-year annualized returns are 10% and 5%, respectively, and its net expense ratio is 0.01%. BATPX has a Zacks Mutual Fund Rank #1.
BlackRock Large Cap Focus Value (MRBVX - Free Report) seeks capital appreciation along with current income by investing most of its assets in large-cap equity securities and derivatives that have similar economic characteristics to such securities. MRBVX advisors primarily choose to invest in equity securities of undervalued companies.
Tony DeSpirito has been the lead manager of MRBVX since November 2019. The three top holdings for MRBVX are Citigroup (3.9%), Wells Fargo (3.8%) and Medtronic (2.9%).
MRBVX’s 3-year and 5-year annualized returns are 6.4% and 9.5%, respectively, and its net expense ratio is 1.17%. MRBVX has a Zacks Mutual Fund Rank #1.
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3 BlackRock Mutual Funds to Buy With Rate Cuts on the Horizon
In recent days, the Federal Reserve has been sending dovish signals about monetary policy. Fed Chair Jerome Powell has, in fact, gone on to say that the central bank would not wait for inflation to come down to the target rate of 2%, something the Fed has been insisting on all this while before cutting interest rates.
Inflation has been slowing down in recent months and other other economic indicators have been suggesting that the time may be ripe for the first rate cut. Market participants have been expecting the first rate cut to be in September for some time now.
Yet, the financial sector has thrived over the past 12 months, with the Fed continuing to keep the rate “higher for longer.” The Financial Select Sector SPDR (XLF) has grown 14.6% year to date and 22.2% over the 12 months ending on Jul 25, 2024. In this environment, BlackRock Inc. BLK, one of the world’s largest asset managers, is poised to do well.
BlackRock was founded in 1988. Based in New York City, the company offers investment, advisory and risk management solutions in various asset classes like equity, fixed income, cash management, alternative investment and real estate. It has more than 19,000 employees and is present in more than 36 countries.
Mid-July, BlackRock reported that it had $10.7 trillion worth of assets under management as of Jun 30, 2024. BLK reported second-quarter 2024 adjusted earnings of $10.36 per share, surpassing the Zacks Consensus Estimate of $9.96. Revenues in the quarter came in at $4.81 billion, lagging the Zacks Consensus Estimate of $4.86 billion. However, the figure increased 8% year over year.
BLK’s continued efforts to strengthen the iShares and ETF operations and restructure its actively managed equity business are expected to aid the company's growth. Also, recently, BlackRock has entered into an agreement with Global Infrastructure Partners to acquire the leading global independent infrastructure manager for $3 billion in cash and approximately 12 million BLK shares. It is also expected to acquire Preqin.
BLK’s exploits in the crypto scene have also been noteworthy. The company is largely credited with rekindling interest in launching spot Bitcoin ETFs when it filed to launch a product in June 2023. With the SEC finally allowing spot Bitcoin ETFs to go mainstream in January, BlackRock has emerged as one of the most prominent holders of Bitcoins.
Hence, investing in BlackRock mutual funds may provide the much-required stability and growth potential in a market that is expected to do well in the coming months. Astute investors should consider such 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 three mutual funds that boast a Zacks Mutual Fund Rank #1 (Strong Buy) or 2 (Buy), have positive three-year and five-year annualized returns and minimum initial investments within $5000, as well as carry a low expense ratio.
BlackRock Advantage Large Cap Group Investor (BMCAX - Free Report) seeks long-term capital appreciation by investing in large-cap equity securities of U.S. issuers and derivatives that have similar economic characteristics. BMCAX advisors define large-cap as those equity securities that, at the time of purchase, have a market capitalization within the range of companies included in the Russell 1000 Growth Index
Raffaele Savi has been the lead manager of BMCAX since June 2017. The three top holdings for BMCAX are Microsoft (13.1%), Apple (10.4%) and Amazon (5%).
BMCAX’s 3-year and 5-year annualized returns are 9.2% and 16.9%, respectively, and its net expense ratio is 0.87%. BMCAX has a Zacks Mutual Fund Rank #1. To see how this fund performed compared to its category, and other 1 and 2 Ranked Mutual Funds, please click here.
BlackRock Allocation Target Shares (BATPX - Free Report) engages in short-selling of U.S. Treasury securities and invests in derivatives that provide returns that are inverse to those available by investing directly in U.S. Treasury securities.
Scott MacLellan has been the lead manager of BATPX since October 2020. The three top holdings for BATPX are U.S. 5-Year Note Sep 24, U.S. 2-Year Note Sep 24 and U.S. 10-Year Treasury Note Future Sept 24.
BATPX’s 3-year and 5-year annualized returns are 10% and 5%, respectively, and its net expense ratio is 0.01%. BATPX has a Zacks Mutual Fund Rank #1.
BlackRock Large Cap Focus Value (MRBVX - Free Report) seeks capital appreciation along with current income by investing most of its assets in large-cap equity securities and derivatives that have similar economic characteristics to such securities. MRBVX advisors primarily choose to invest in equity securities of undervalued companies.
Tony DeSpirito has been the lead manager of MRBVX since November 2019. The three top holdings for MRBVX are Citigroup (3.9%), Wells Fargo (3.8%) and Medtronic (2.9%).
MRBVX’s 3-year and 5-year annualized returns are 6.4% and 9.5%, respectively, and its net expense ratio is 1.17%. MRBVX 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 >>