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Is Fidelity Advisor Gold A (FGDAX) a Strong Mutual Fund Pick Right Now?
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Have you been searching for a Mutual Fund Equity Report fund? You might want to begin with Fidelity Advisor Gold A (FGDAX - Free Report) . FGDAX holds a Zacks Mutual Fund Rank of 3 (Hold), 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 FGDAX. Fidelity Advisor Gold A made its debut in December of 2006, and since then, FGDAX has accumulated about $75.03 million in assets, per the most up-to-date date available. The fund's current manager, Steven Calhoun, has been in charge of the fund since September of 2018.
Performance
Of course, investors look for strong performance in funds. FGDAX has a 5-year annualized total return of 3.52% and it sits in the bottom third among its category peers. Investors who prefer analyzing shorter time frames should look at its 3-year annualized total return of 2.28%, which places it in the bottom 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. The standard deviation of FGDAX over the past three years is 37.85% compared to the category average of 20.59%. Looking at the past 5 years, the fund's standard deviation is 32.51% compared to the category average of 17.92%. This makes the fund more volatile than its peers over the past half-decade.
Risk Factors
Investors should not forget about beta, an important way to measure a mutual fund's risk compared to the market as a whole. FGDAX has a 5-year beta of 0.71, which means it is likely to be less volatile than the market average. Because alpha represents a portfolio's performance on a risk-adjusted basis relative to a benchmark, which is the S&P 500 in this case, one should pay attention to this metric as well. FGDAX has generated a negative alpha over the past five years of -0.62, demonstrating that managers in this portfolio find it difficult to pick securities that generate better-than-benchmark returns.
Expenses
For investors, taking a closer look at cost-related metrics is key, since costs are increasingly important for mutual fund investing. Competition is heating up in this space, and a lower cost product will likely outperform its otherwise identical counterpart, all things being equal. In terms of fees, FGDAX is a load fund. It has an expense ratio of 1.08% compared to the category average of 1.33%. FGDAX is actually cheaper than its peers when you consider factors like cost.
While the minimum initial investment for the product is $0, investors should also note that there is no minimum for each subsequent investment.
Bottom Line
Overall, Fidelity Advisor Gold A ( FGDAX ) has a neutral Zacks Mutual Fund rank, and in conjunction with its comparatively weak performance, worse downside risk, and lower fees, Fidelity Advisor Gold A ( FGDAX ) looks like a somewhat average choice for investors right now.
Your research on the Mutual Fund Equity Report segment doesn't have to stop here. You can check out all the great mutual fund tools we have to offer by going to www.zacks.com/funds/mutual-funds to see the additional features we offer as well for additional information. Zacks provides a full suite of tools to help you analyze your portfolio - both funds and stocks - in the most efficient way possible.
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Is Fidelity Advisor Gold A (FGDAX) a Strong Mutual Fund Pick Right Now?
Have you been searching for a Mutual Fund Equity Report fund? You might want to begin with Fidelity Advisor Gold A (FGDAX - Free Report) . FGDAX holds a Zacks Mutual Fund Rank of 3 (Hold), 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 FGDAX. Fidelity Advisor Gold A made its debut in December of 2006, and since then, FGDAX has accumulated about $75.03 million in assets, per the most up-to-date date available. The fund's current manager, Steven Calhoun, has been in charge of the fund since September of 2018.
Performance
Of course, investors look for strong performance in funds. FGDAX has a 5-year annualized total return of 3.52% and it sits in the bottom third among its category peers. Investors who prefer analyzing shorter time frames should look at its 3-year annualized total return of 2.28%, which places it in the bottom 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. The standard deviation of FGDAX over the past three years is 37.85% compared to the category average of 20.59%. Looking at the past 5 years, the fund's standard deviation is 32.51% compared to the category average of 17.92%. This makes the fund more volatile than its peers over the past half-decade.
Risk Factors
Investors should not forget about beta, an important way to measure a mutual fund's risk compared to the market as a whole. FGDAX has a 5-year beta of 0.71, which means it is likely to be less volatile than the market average. Because alpha represents a portfolio's performance on a risk-adjusted basis relative to a benchmark, which is the S&P 500 in this case, one should pay attention to this metric as well. FGDAX has generated a negative alpha over the past five years of -0.62, demonstrating that managers in this portfolio find it difficult to pick securities that generate better-than-benchmark returns.
Expenses
For investors, taking a closer look at cost-related metrics is key, since costs are increasingly important for mutual fund investing. Competition is heating up in this space, and a lower cost product will likely outperform its otherwise identical counterpart, all things being equal. In terms of fees, FGDAX is a load fund. It has an expense ratio of 1.08% compared to the category average of 1.33%. FGDAX is actually cheaper than its peers when you consider factors like cost.
While the minimum initial investment for the product is $0, investors should also note that there is no minimum for each subsequent investment.
Bottom Line
Overall, Fidelity Advisor Gold A ( FGDAX ) has a neutral Zacks Mutual Fund rank, and in conjunction with its comparatively weak performance, worse downside risk, and lower fees, Fidelity Advisor Gold A ( FGDAX ) looks like a somewhat average choice for investors right now.
Your research on the Mutual Fund Equity Report segment doesn't have to stop here. You can check out all the great mutual fund tools we have to offer by going to www.zacks.com/funds/mutual-funds to see the additional features we offer as well for additional information. Zacks provides a full suite of tools to help you analyze your portfolio - both funds and stocks - in the most efficient way possible.