Is this the time to buy foreign funds? Which sustainable funds should you own?
FundX CEO Janet Brown was on the MoneyLife Show with Chuck Jaffe this month talking about what funds and ETFs are doing best now.
“Tech has been driving this growth-oriented market, so funds that are overweight in tech tend to do really well.” Janet said, pointing to funds like Invesco QQQ (QQQ), which tracks the tech-heavy Nasdaq 100 Index, and Fidelity OTC (FOCPX), which has about 40% in the tech sector.
What about other kinds of funds, like foreign funds or sustainable funds? Janet answered listener questions about health-care funds, foreign funds, sustainable funds and balanced funds.
Click here to listen to Janet’s interview.
Janet’s Take on 4 Funds
1. Vanguard Health Care (VGHCX)
Health-care funds aren’t doing as well as other areas right now, Janet said. If you're going to invest in sector funds, “there are so many more funds, particularly tech, semiconductors, even utilities, that are doing better.”
2. T Rowe Price New Asia (PRASX)
“Even before the coronavirus news, Asia had been weak. Market trends have been domestically focused lately and foreign funds have taken a hit,” she said. "I'd avoid PRASX for now."
3. Parnassus Core Equity (PRBLX)
“When you look at money flows into mutual funds and ETFs, they’re going into sustainable responsible investing portfolios, and that’s what PRBLX does.” However, Janet noted two sustainable funds that have done even better: Brown Advisory Sustainable Growth (BIAWX) or Domini Impact Equity (DSEFX).
4. Vanguard Wellesley Income (VWINX)
Balanced funds may offer a more comfortable ride if volatility picks up this year, Janet said. If you’re looking to buy a balanced fund now, Janus Henderson Balanced (JABAX), Fidelity Balanced (FBALX), and Vanguard Balanced (VBIAX) have done better than VWINX recently.