Tried and True: ING Corporate Leaders Trust Series B
In light of Morningstar‘s concerns about financial stocks in the second half of the year, I have to start off with a conservactive pick. The ING Corporate Leaders Trust Series B (LEXCX) has only one financial stock in its 22 holdings, but it’s Berkshire Hathaway (BRK.B) — Warren Buffett’s personal conglomerate and one of the three financial services stocks Morningstar recommends in its report.
Owning LEXCX is like owning a mutual fund within a mutual fund. Between Berkshire Hathaway’s insurance holdings as well as its equity investments in Wells Fargo, American Express (AXP) and U.S. Bancorp (USB), you’ll get plenty of exposure to financial services plus all of the other great stocks it owns. With America’s economy continuing to strengthen, this fund’s holdings are positioned nicely to benefit from a recovery.
The fund has $1.3 billion in total net assets, charges just 0.52% annually and has zero turnover, making it extremely investor friendly. Very few mutual funds of any description can match its overall quality.