All the key indexes touched record highs during the third quarter, with both the Dow and the S&P 500 posting their eighth straight quarter of gains. While the Dow posted its best quarterly winning streak since 1997, the S&P 500 registered its best stretch of quarterly rise since its inception. A significant jump in tech stocks, meanwhile, boosted the tech-laden Nasdaq, which registered its 50th record close of this year on the last trading day of the quarter. The index also posted its fifth straight positive quarter since 2015.
Investors interested in scooping up strong returns while the optimism lasts with flock to index funds. Then again, the more astute investors will also consider reducing their expenses while buying or selling funds to make the most of this market. For them, no-load mutual funds should do the trick.
Mutual funds with no sales or commission charges are known as no-load funds. This generally happens when funds are traded directly through the investment company and not through some secondary entity.
This implies that these do not carry the entry or exit burden like management funds do. It comes as no surprise then that no-load funds have managed to provide better returns than their load peers so far this year.
Benchmarks Touch Record Highs
Benchmarks managed to close at record highs despite rising tensions between the United States and North Korea as well as the adverse impact of hurricanes. Solid second-quarter earnings results and steady economic growth helped stocks to rally, while optimism over Trump’s tax overhaul made small caps strong investment choices. The small-cap Russell 2000 index also hit record high levels in the aforesaid quarter.
Small caps bounced back on renewed hope that key Republican congressional leaders and President Trump’s top associates are working on a tax reform framework. Further, new proposals related to the full expensing for small-cap companies are likely. These proposals aim to extend deductions on investments made by small businesses on new facilities and equipment.
