Blackrock, which is one of the leading investment, advisory and risk management solutions providers was founded in New York in the year 1988. The company manages various asset classes like equity, fixed income, cash management, alternative investment and real estate.
The company has more than 19,000 employees and is present in more than 36 countries. Blackrock manages assets for clients, which include corporate, public, and pension plans for unions and industry; governments, insurance companies, third-party mutual funds, endowments, foundations, charities, corporations, official institutions, sovereign wealth funds, banks, financial professionals, and individuals worldwide.
BlackRock was founded as a stand-alone investment management company and focuses on providing asset and risk management services to clients. As of Jun 30, 2023, the company manages around $9.4 trillion in assets under management and is the world’s largest asset manager.
Blackrock mutual funds are compelling investment choices since they have given a positive return and are expected to perform well in 2023 and beyond. After Federal Reserves’ Chairman Jerome Powell’s speech in Jackson Hole, it became clearer that the Fed is more concerned with keeping inflation under check and achieving its 2% target over the long-term period by using additional monetary tightening measures whenever required. Climbing energy crisis, geo-political tensions, and disrupted supply-chain management are affecting corporation’s profit margins.
We have thus selected three Blackrock mutual funds that have not only preserved investors’ wealth but also generated excellent returns amid such a gloomy market condition. These funds have the majority of their investments in sectors such as technology, finance, health and others, which are expected to perform well in the long term.
These funds boast a Zacks Mutual Fund Rank #1 (Strong Buy), have positive three-year and five-year annualized returns, minimum initial investments within $5000, and carry a low expense ratio compared to the category average. Notably, mutual funds, in general, reduce transaction costs and diversify portfolios without an array of commission charges mostly associated with stock purchases (read more: Mutual Funds: Advantages, Disadvantages, and How They Make Investors Money).
BlackRock Mid-Cap Value Fund MDRFX invests most of its assets along with borrowings, if any, in a diversified portfolio of equity securities of mid-cap companies. MDRFX advisors prefer to invest in dividend-paying securities.
Tony DeSpirito has been the lead manager of MDRFX since Jun 11, 2017, and most of the fund’s exposure is in companies like Baxter International (2.8%), Cognizant Technology Solutions (2.2%) and SS&C Technologies Holdings (2.1%) as of 4/30/2023.
MDRFX’s three-year and five-year annualized returns are almost 18.5% and 9.5%, respectively. MDRFX has an annual expense ratio of 0.9% compared to the category average of 1.01%.
To see how this fund performed compared to its category and other 1, 2, and 3 Ranked Mutual Funds, please click here.
BlackRock Exchange Portfolio BlackRock STSEX seeks to minimize capital gains by investing most of its net assets in a diversified and managed portfolio of common stocks and convertible securities, which its fund manager believes have growth potential at the time of purchase. STSEX advisors choose to invest mostly in mid-to-large market-capitalization companies.
Phil Ruvinsky has been the lead manager of STSEX since Feb 1, 2020, and most of the fund’s exposure is in companies like Microsoft (30.2%), Berkshire Hathaway (11.3%) and General Dynamics (8.7%) as of 3/31/2023.
STSEX’sthree-year and five-year annualized returns are almost 16.4% and 13.3%, respectively. STSEX has an annual expense ratio of 0.77%, which is less than the category average of 0.84%.
BlackRock Large Cap Focus Value Fund MDBAX seeks capital appreciation along with current income by investing most of its assets along with borrowings, if any, in large-cap equity securities and derivatives that have similar economic characteristics to such securities. MDBAX advisors primarily choose to invest in equity securities undervalued companies.
Joseph E. Wolfe has been the lead manager of MDBAX since Mar 29, 2017, and most of the fund’s exposure is in companies like Wells Fargo (3.0%), Citigroup (3.0%) and Meta Platforms (2.9%) as of 3/31/2023.
MDBAX’s three-year and five-year annualized returns are almost 16.3% and 8.0%, respectively. MDBAX has an annual expense ratio of 0.81% compared to the category average of 0.94%.
Want key mutual fund info delivered straight to your inbox?
Zacks’ free Fund Newsletter will brief you on top news and analysis, as well as top-performing mutual funds, each week. Get it free >>
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report