The S&P Industrials Sector Is Showing Leadership For November
For the month of November, the industrial sector is among S&P leaders.
Top stocks in the sector include:
- Parker-Hannafin Corporation (NYSE: PH)
- General Dynamics Corporation (NYSE: GD)
- Textron Inc. (NYSE: TXT)
- Robert Half International Inc. (NYSE: RHI)
- Delta Air Lines, Inc. (NYSE: DAL)
Although there are plenty of blue-chip, established companies in the sector, it is not flashy like technology, consumer discretionary, or even health care and financials. Typically, it's not a sector that spawns the kind of innovation that gets a lot of media coverage.
Nonetheless, investors have been plowing money into the sector.
Actively-Managed Industrial Fund
A top industrials sector actively-managed fund is Fidelity Select Transportation (MUTF: FSRFX). It typically invests at least 80 percent of assets in foreign and domestic transportation-industry stocks. Managers use fundamental analysis to choose investments. Its year-to-date total return, which includes price appreciation and dividends, is 23.16 percent.
Other Industrial Funds To Watch: Rydex And Putnam
Another top-performing fund from the sector is the Rydex Series Transportation Fund Class A (MUTF: RYTSX). This fund seeks to invest at least 80 percent of net assets in U.S. transportation company stocks, with a focus on mid-caps. It also invests in derivatives, such as futures and options. The fund may also purchase American Depositary Receipts to get exposure to overseas-based transportation companies.
The fund's year-to-date total return is 15.40 percent.
The Putnam Global Industrial Fund Class A (MUTF: PGIAX) is another actively-managed industrials sector fund that has performed well recently. While its year-to-date return is a puny 0.61 percent, it has rallied in the past three months, showing a return of 2.11 percent.
This fund invests in growth and value stocks, with market values in the large- and mid-cap categories. Potential investments include companies active in the research, development, manufacturing, distribution, supply or sale of products and services within the industrials sector. In other words, there is a fairly wide universe of stocks within the sector that the fund manager can choose.
The fund may also use derivatives, such as futures and options, currency transactions, warrants and swaps.
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