They can either be wood or aluminum. I encourage you to use a wood one. If not, I will make fun of you like I do my good friend Bill Booker at LaSalle-Peru H.S. for using his aluminum one. If you choose the wood fungo, I would recommend taping the barrel. If you hit a good number of fungoes, the tape will increase the durability of the bat. I took the tape off of one once. The barrell was like sawdust, but I re-taped it and it was ready to go. One season, I figured it out, between the high school, American Legion, an junior high seasons I had hit over 10,000 fungoes. Tape it up!
If your high school or travel team has at least two coaches, you can use what Bates calls a two-fungo drill. One coach can hit to third and second, while the other hits to short and first. If catchers are finished working with the pitchers, they can feed balls to the fungo hitters. The idea is for the third baseman to practice turning a 5-4-3, with the first baseman moving up toward second base about 60 feet instead of 90, with a net behind him to catch overthrows. The shortstop works on throwing across on 6-3s.
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Manufacturers position each bat's label over the mechanically weaker side of the wood. To reduce chance of fracture, and maybe deliver more energy to the ball, a bat is intended to be held so the label faces sky or ground when it strikes the ball during a horizontal swing. In this orientation, the bat is considered stiffer and less likely to break.
Fungo bats are typically only used by coaches, to consistently place grounders and pop flies to their fielders for practice purposes. And with a fungo bat in their hands, some coaches can pull off wicked accuracy – as one story goes, the late California Angels player and coach Jimmie Reese once shot an 82 on an 18-hole golf course using nothing but a putter and a fungo bat.