• Home
  • News
  • Personal Finance
    • Savings
    • Banking
    • Mortgage
    • Retirement
    • Taxes
    • Wealth
  • Make Money
  • Budgeting
  • Burrow
  • Investing
  • Credit Cards
  • Loans

Subscribe to Updates

Get the latest finance news and updates directly to your inbox.

Top News

Get Away From It All With These 17 Money-Saving Cruise Tips

July 3, 2025

Turn Play Into Profit: 10 Enjoyable Ways to Earn From Your Hobbies

July 3, 2025

How I Built a Multi-Unit Franchise Operation Without Leaving My Day Job

July 2, 2025
Facebook Twitter Instagram
Trending
  • Get Away From It All With These 17 Money-Saving Cruise Tips
  • Turn Play Into Profit: 10 Enjoyable Ways to Earn From Your Hobbies
  • How I Built a Multi-Unit Franchise Operation Without Leaving My Day Job
  • 13 Jobs Without College or AI: Salaries Can Start at $70k+
  • Chuck E. Cheese Is Opening an Arcade Concept for Adults
  • How AI And Apps Elevate Your Retirement Side Gig Beyond A Hobby Hustle
  • Amazon, Starbucks, Home Depot in the Hot Seat As Boycotts Heat Up
  • Check Your Budget: 15 Cities and States Are Hiking Minimum Wage in July
Thursday, July 3
Facebook Twitter Instagram
FintechoPro
Subscribe For Alerts
  • Home
  • News
  • Personal Finance
    • Savings
    • Banking
    • Mortgage
    • Retirement
    • Taxes
    • Wealth
  • Make Money
  • Budgeting
  • Burrow
  • Investing
  • Credit Cards
  • Loans
FintechoPro
Home » How To Find The Best Sector Mutual Funds 3Q23
Investing

How To Find The Best Sector Mutual Funds 3Q23

News RoomBy News RoomAugust 5, 20230 Views0
Facebook Twitter Pinterest LinkedIn WhatsApp Reddit Email Tumblr Telegram

With an ever-growing list of similar-sounding mutual funds to choose from, finding the best is an increasingly difficult task. How can investors change the game to shift the odds in their favor?

Don’t Trust Mutual Fund Labels

There are at least 156 different Real Estate mutual funds and at least 596 mutual funds across eleven sectors. Do investors need 54+ choices on average per sector? How different can the mutual funds be?

Those 156 Real Estate mutual funds are very different from each other. With anywhere from 22 to 164 holdings, many of these Real Estate mutual funds have drastically different portfolios with differing risk profiles and performance outlooks.

The same is true for the mutual funds in any other sector, as each offers a very different mix of good and bad stocks. Energy ranks first for stock selection. Real Estate ranks last.

Avoiding Analysis Paralysis

I think the large number of sector mutual funds hurts investors more than it helps. Manually conducting a deep analysis for every fund is simply not a realistic option, exposing investors to insufficient analysis and missing profitable opportunities. Analyzing mutual funds, with the proper diligence, is far more difficult than analyzing stocks because it means analyzing all the stocks within each mutual fund. As stated above, there can be as many as 164 stocks or more for one mutual fund.

Figure 1 shows the top rated mutual fund for each sector.

Figure 1: The Best Mutual Fund in Each Sector

* Best mutual funds exclude funds with TNAs less than $100 million for inadequate liquidity

Amongst the mutual funds in Figure 1, Vanguard Energy Index Fund (VENAX) ranks first overall, Fidelity Banking Portfolio (FSRBX) ranks second, and Schwab Health Care Fund (SWHFX) ranks third. Fidelity Real Estate Index Fund (FSRNX) ranks last.

How to Avoid “The Danger Within”

Why do you need to know the holdings of mutual funds before you buy?

You need to be sure you do not buy a fund that might blow up. Buying a fund without analyzing its holdings is like buying a stock without analyzing its business and finances. No matter how cheap, if it holds bad stocks, the mutual fund’s performance will be bad.

PERFORMANCE OF FUND’S HOLDINGS – FEES = PERFORMANCE OF FUND

If Only Investors Could Find Funds Rated by Their Holdings

Vanguard Energy Index Fund (VENAX) is not only the top-rated Energy mutual fund, but is also the overall top-rated sector mutual fund out of the 596 sector mutual funds that my firm covers.

The worst mutual fund in Figure 1 is Fidelity Real Estate Index Fund (FSRNX), which gets a very unattractive rating. One would think mutual fund providers could do better for this sector.

Disclosure: David Trainer, Kyle Guske II, Hakan Salt, and Italo Mendonça receive no compensation to write about any specific stock, sector, or theme.

Read the full article here

Share. Facebook Twitter Pinterest LinkedIn Tumblr Email

Related Articles

13 Jobs Without College or AI: Salaries Can Start at $70k+

Investing July 2, 2025

Why Your Finance Team Needs an AI Strategy, Now

Investing July 1, 2025

Grief Forced Me to Step Away From My Company. These 5 Systems Made It Possible.

Investing June 30, 2025

Access to 1,000+ Skill Courses Is Now Just $20

Investing June 29, 2025

17 Surprising Ways 7-Figure Solopreneurs Are Using AI — And You’re Not

Investing June 28, 2025

Microsoft Staff Told to Use AI More at Work: Report

Investing June 27, 2025
Add A Comment

Leave A Reply Cancel Reply

Demo
Top News

Turn Play Into Profit: 10 Enjoyable Ways to Earn From Your Hobbies

July 3, 20250 Views

How I Built a Multi-Unit Franchise Operation Without Leaving My Day Job

July 2, 20251 Views

13 Jobs Without College or AI: Salaries Can Start at $70k+

July 2, 20250 Views

Chuck E. Cheese Is Opening an Arcade Concept for Adults

July 2, 20250 Views
Don't Miss

How AI And Apps Elevate Your Retirement Side Gig Beyond A Hobby Hustle

By News RoomJuly 2, 2025

A retirement side gig can emerge from boredom, isolation, or simply the desire to earn…

Amazon, Starbucks, Home Depot in the Hot Seat As Boycotts Heat Up

July 2, 2025

Check Your Budget: 15 Cities and States Are Hiking Minimum Wage in July

July 2, 2025

10 Budgeting Rules That Are Quietly Hurting Middle-Class Families

July 2, 2025
Facebook Twitter Instagram Pinterest Dribbble
  • Privacy Policy
  • Terms of use
  • Press Release
  • Advertise
  • Contact
© 2025 FintechoPro. All Rights Reserved.

Type above and press Enter to search. Press Esc to cancel.