BOSTON (Reuters) - Juul Labs Inc has become one the biggest bets in the portfolio of Fidelity’s $28 billion Blue Chip Growth Fund, whose exposure to the troubled e-cigarette maker has climbed to $761 million amid a regulatory backlash and departure of its top executive. Signage for Juul vaping products is seen on a storefront in New York City, U.S., September 9, 2019. REUTERS/Andrew Kelly Fidelity Blue Chip Growth Fund’s (FBGKX.O) manager Sonu Kalra had 2.7% of the giant fund’s assets invested in Juul as of July 31, the latest fund disclosures show, up from 1.7% of assets a year earlier. Although Juul remains privately held, some Fidelity funds have made a practice of taking stakes in pre-IPO companies that have paid off big when they go public. But the tactic can also put Fidelity fund holders into volatile situations like the one at rideshare leader Uber Technologies Inc (UBER.N), which is trading well below its IPO price in May. Juul is the latest … [Read more...] about Fidelity fund’s big bet on Juul looms large amid controversy
Large cap us equity fund
Stan Choe, Ap Business Writer Updated 7:42 am PDT, Thursday, September 12, 2019 FILE - In this Aug. 5, 2019, file photo trader Timothy Nick, right, works on the floor of the New York Stock Exchange. Mutual fund managers are making the most of the shaky stock market, which has provided them an opportunity to prove themselves and lure back investors who dumped them in recent years. Nearly half of all actively managed U.S. stock funds turned in better returns than their average index-fund peer for the 12 months through June, according to fund tracker Morningstar. less FILE - In this Aug. 5, 2019, file photo trader Timothy Nick, right, works on the floor of the New York Stock Exchange. Mutual fund managers are making the most of the shaky stock market, which has provided them ... more Photo: Richard Drew, AP … [Read more...] about Stock-picking fund managers are clawing back. Can it last?
Some of the best Charles Schwab mutual funds to buy. A household name for nearly 50 years, Charles Schwab is not only a bank but also a discount broker that provides both retirement and investment accounts. The San Francisco-based investment company (ticker: SCHW) offers both equity and bond mutual funds that are actively managed or based on benchmark indexes. Schwab holds more than $420 billion in assets and is one of the largest providers of index mutual funds. The company does not require a minimum investment for its index mutual funds, which is an advantage for investors who are just starting to invest for retirement in an individual retirement account and opt to manage their retirement income. Here are a few recommended Schwab mutual funds for your retirement account. Schwab Health Care Fund (SWHFX) The Schwab Health Care Fund is a fund focused on the health care sector. Investing in a sector increases both risk and volatility but also adds diversification in a portfolio, says … [Read more...] about 6 Best Schwab Mutual Funds for Your Retirement Account
Value funds to beat the market. Investing in value stocks gained popularity after research by Eugene Fama and Kenneth French in 1993 uncovered that investing in value stocks can lead to excess stock returns. A value stock is one that is trading at less than it's intrinsic worth, as measured by various factors like price-earnings ratio, dividends, earnings or sales. The Fama and French study found that over time, value stocks tended to outperform growth stocks. A study by Gregory Powell of Miller/Howard Investments shows that during a five-year period ending in 2018, growth stocks measured by the Russell 1000 Growth index gained 64% while value stocks measured by the Russell 1000 Value Index eked out a 33% gain. While investment cycles are difficult to predict, some financial professionals believe that value is due for a rebound. Here are seven value funds to consider. Vanguard Value ETF (ticker: VTV) This large-cap value stock fund which tracks the performance of the CRSP U.S. Large … [Read more...] about 7 Best Value Funds to Play the Sector Rebound
As investors flock to low-cost index funds that generate only modest revenue for fund companies, many asset managers are seeking new markets. What several companies, including some of the biggest, have hit upon is a form of financial planning, “a service for which investors are still willing to pay” high fees “that active management once enjoyed,” Don Phillips, a managing director at Morningstar, said. Fund companies have introduced an assortment of services to assist financial advisers, or to take the task off the advisers’ hands entirely. By Morningstar’s estimate, advisers have invested nearly $35 billion in model portfolios provided by big fund companies and other so-called turnkey asset management providers. That compares with $13.6 billion at the end of 2016. The roughly two dozen turnkey portfolio providers include household names like Vanguard, State Street Global Advisors and Pimco, along with less well-known managers. Some of them, … [Read more...] about Fund Managers Try Financial Planning as Indexing Cuts Profit