The 5 Best Funds to Play Financials

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A Global Perspective: Prudential Financial Services Fund 

prudential The 5 Best Funds to Play FinancialsWhile it’s clear European banks are having a tough time at the moment, there are countless countries around the world where financial services companies are thriving — including right here in the U.S.

Enter the Prudential Financial Services Fund (PFSAX), which has a total assets of $322 million invested in 47 stocks. The U.S., Switzerland, Canada, Brazil and the U.K. represent more than 65% of the overall portfolio.

Familiar names include Citigroup (C), UBS (UBS) and  Canadian Imperial Bank of Commerce (CM). Banks account for 39% of the portfolio, insurance another 22% and other financials including asset management, the rest. It’s consistently ranked highly by Morningstar, thanks in part to its annualized 10-year return of 9.8%.

If you’re used to investing in generally cheaper exchange-traded funds, you might not like this pick’s annual expense ratio of 1.41%. But considering Lipper says its performance is better than most financial services funds, I think you have to take the good with the bad.


Article printed from InvestorPlace Media, http://investorplace.com/2013/07/the-5-best-funds-to-play-financials/.

©2014 InvestorPlace Media, LLC

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