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Is Fidelity Select Consumer Staples (FDFAX) a Strong Mutual Fund Pick Right Now?
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Any investors hoping to find a Sector - Other fund could think about starting with Fidelity Select Consumer Staples (FDFAX - Free Report) . FDFAX carries a Zacks Mutual Fund Rank of 2 (Buy), which is based on nine forecasting factors like size, cost, and past performance.
History of Fund/Manager
Fidelity is based in Boston, MA, and is the manager of FDFAX. Fidelity Select Consumer Staples debuted in July of 1985. Since then, FDFAX has accumulated assets of about $854.22 million, according to the most recently available information. The fund is currently managed by Ben Shuleva who has been in charge of the fund since January of 2020.
Performance
Obviously, what investors are looking for in these funds is strong performance relative to their peers. FDFAX has a 5-year annualized total return of 7.64% and it sits in the top third among its category peers. Investors who prefer analyzing shorter time frames should look at its 3-year annualized total return of 12.74%, which places it in the top third during this time-frame.
When looking at a fund's performance, it is also important to note the standard deviation of the returns. The lower the standard deviation, the less volatility the fund experiences. Over the past three years, FDFAX's standard deviation comes in at 15.78%, compared to the category average of 15.08%. The standard deviation of the fund over the past 5 years is 13.94% compared to the category average of 12.6%. This makes the fund more volatile than its peers over the past half-decade.
Risk Factors
Investors should note that the fund has a 5-year beta of 0.76, which means it is hypothetically less volatile than the market at large. Another factor to consider is alpha, as it reflects a portfolio's performance on a risk-adjusted basis relative to a benchmark-in this case, the S&P 500. Over the past 5 years, the fund has a negative alpha of -5.27. This means that managers in this portfolio find it difficult to pick securities that generate better-than-benchmark returns.
Expenses
Costs are increasingly important for mutual fund investing, and particularly as competition heats up in this market. And all things being equal, a lower cost product will outperform its otherwise identical counterpart, so taking a closer look at these metrics is key for investors. In terms of fees, FDFAX is a no load fund. It has an expense ratio of 0.74% compared to the category average of 1.27%. Looking at the fund from a cost perspective, FDFAX is actually cheaper than its peers.
This fund requires a minimum initial investment of $0, while there is no minimum for each subsequent investment.
Bottom Line
Overall, Fidelity Select Consumer Staples ( FDFAX ) has a high Zacks Mutual Fund rank, and in conjunction with its comparatively strong performance, average downside risk, and lower fees, this fund looks like a good potential choice for investors right now.
Don't stop here for your research on Sector - Other funds. We also have plenty more on our site in order to help you find the best possible fund for your portfolio. Make sure to check out www.zacks.com/funds/mutual-funds for more information about the world of funds, and feel free to compare FDFAX to its peers as well for additional information. Want to learn even more? We have a full suite of tools on stocks that you can use to find the best choices for your portfolio too, no matter what kind of investor you are.
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Is Fidelity Select Consumer Staples (FDFAX) a Strong Mutual Fund Pick Right Now?
Any investors hoping to find a Sector - Other fund could think about starting with Fidelity Select Consumer Staples (FDFAX - Free Report) . FDFAX carries a Zacks Mutual Fund Rank of 2 (Buy), which is based on nine forecasting factors like size, cost, and past performance.
History of Fund/Manager
Fidelity is based in Boston, MA, and is the manager of FDFAX. Fidelity Select Consumer Staples debuted in July of 1985. Since then, FDFAX has accumulated assets of about $854.22 million, according to the most recently available information. The fund is currently managed by Ben Shuleva who has been in charge of the fund since January of 2020.
Performance
Obviously, what investors are looking for in these funds is strong performance relative to their peers. FDFAX has a 5-year annualized total return of 7.64% and it sits in the top third among its category peers. Investors who prefer analyzing shorter time frames should look at its 3-year annualized total return of 12.74%, which places it in the top third during this time-frame.
When looking at a fund's performance, it is also important to note the standard deviation of the returns. The lower the standard deviation, the less volatility the fund experiences. Over the past three years, FDFAX's standard deviation comes in at 15.78%, compared to the category average of 15.08%. The standard deviation of the fund over the past 5 years is 13.94% compared to the category average of 12.6%. This makes the fund more volatile than its peers over the past half-decade.
Risk Factors
Investors should note that the fund has a 5-year beta of 0.76, which means it is hypothetically less volatile than the market at large. Another factor to consider is alpha, as it reflects a portfolio's performance on a risk-adjusted basis relative to a benchmark-in this case, the S&P 500. Over the past 5 years, the fund has a negative alpha of -5.27. This means that managers in this portfolio find it difficult to pick securities that generate better-than-benchmark returns.
Expenses
Costs are increasingly important for mutual fund investing, and particularly as competition heats up in this market. And all things being equal, a lower cost product will outperform its otherwise identical counterpart, so taking a closer look at these metrics is key for investors. In terms of fees, FDFAX is a no load fund. It has an expense ratio of 0.74% compared to the category average of 1.27%. Looking at the fund from a cost perspective, FDFAX is actually cheaper than its peers.
This fund requires a minimum initial investment of $0, while there is no minimum for each subsequent investment.
Bottom Line
Overall, Fidelity Select Consumer Staples ( FDFAX ) has a high Zacks Mutual Fund rank, and in conjunction with its comparatively strong performance, average downside risk, and lower fees, this fund looks like a good potential choice for investors right now.
Don't stop here for your research on Sector - Other funds. We also have plenty more on our site in order to help you find the best possible fund for your portfolio. Make sure to check out www.zacks.com/funds/mutual-funds for more information about the world of funds, and feel free to compare FDFAX to its peers as well for additional information. Want to learn even more? We have a full suite of tools on stocks that you can use to find the best choices for your portfolio too, no matter what kind of investor you are.