Top Funds That Invest in U.S. Banks
With the Federal Reserve widely expected to raise rates next month, your clients may start asking which stocks are likely to feel an impact. And while it's not wise to start fiddling with long-term allocations, if they have a tactical portion of their portfolios, they may want to consider which holdings are interest-rate sensitive.
Fixed-income may be the first thought, but bank stocks are generating buzz and will be even stronger if rates rise.
There are two caveats to consider: The notion of higher rates may already be baked into bank stocks; and the Fed may not raise rates. But for those interested in seeing the strongest mutual funds with high concentrations to the U.S. banking sector, click through to see the 10 funds ranked by three-year annualized returns.
All data from Morningstar. Each fund listed has at least 50% of its assets in U.S. banks. To see a single-page version, click here