We use cookies to understand how you use our site and to improve your experience. This includes personalizing content and advertising. To learn more, click here. By continuing to use our site, you accept our use of cookies, revised Privacy Policy and Terms of Service.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
Is Fidelity Telecom/Utilities Fund (FIUIX) a Strong Mutual Fund Pick Right Now?
Read MoreHide Full Article
If you've been stuck searching for Sector - Utilities funds, you might want to consider passing on by Fidelity Telecom/Utilities Fund (FIUIX - Free Report) as a possibility. FIUIX possesses a Zacks Mutual Fund Rank of 4 (Sell), which is based on nine forecasting factors like size, cost, and past performance.
Objective
We classify FIUIX in the Sector - Utilities category, an area that is rife with possible choices. Sector - Utilities funds focus their investments on firms that provide essential daily services to millions of people like electric power, gas distribution, and water supply. All in all, the utility industry is a perfect fit for those investors looking for stability and low volatility.
History of Fund/Manager
Fidelity is based in Boston, MA, and is the manager of FIUIX. Since Fidelity Telecom/Utilities Fund made its debut in November of 1987, FIUIX has garnered more than $1.06 billion in assets. The fund is currently managed by Douglas Simmons who has been in charge of the fund since September of 2005.
Performance
Of course, investors look for strong performance in funds. FIUIX has a 5-year annualized total return of 7.8% and is in the top third among its category peers. But if you are looking for a shorter time frame, it is also worth looking at its 3-year annualized total return of 8.24%, 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. The standard deviation of FIUIX over the past three years is 9.96% compared to the category average of 10.47%. Looking at the past 5 years, the fund's standard deviation is 10.47% compared to the category average of 11.09%. This makes the fund less volatile than its peers over the past half-decade.
Risk Factors
One cannot ignore the volatility of this segment, however, as it is always important for investors to remember the downside to any potential investment. In FIUIX's case, the fund lost 44.57% in the most recent bear market and outperformed its peer group by 0%. This could mean that the fund is an on par choice than comparable funds during a bear market.
Nevertheless, investors should also note that the fund has a 5-year beta of 0.52, 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 positive alpha of 2.58. This means that managers in this portfolio are skilled in picking securities that generate better-than-benchmark returns.
Expenses
As competition heats up in the mutual fund market, costs become increasingly important. Compared to its otherwise identical counterpart, a low-cost product will be an outperformer, all other things being equal. Thus, taking a closer look at cost-related metrics is vital for investors. In terms of fees, FIUIX is a no load fund. It has an expense ratio of 0.77% compared to the category average of 1.26%. So, FIUIX is actually cheaper than its peers from a cost perspective.
Investors need to be aware that with this product, the minimum initial investment is $0; each subsequent investment has no minimum amount.
Bottom Line
Overall, Fidelity Telecom/Utilities Fund ( FIUIX ) has a low Zacks Mutual Fund rank, and in conjunction with its comparatively strong performance, average downside risk, and lower fees, this fund looks like a somewhat weak choice for investors right now.
Your research on the Sector - Utilities 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.
See More Zacks Research for These Tickers
Normally $25 each - click below to receive one report FREE:
Image: Bigstock
Is Fidelity Telecom/Utilities Fund (FIUIX) a Strong Mutual Fund Pick Right Now?
If you've been stuck searching for Sector - Utilities funds, you might want to consider passing on by Fidelity Telecom/Utilities Fund (FIUIX - Free Report) as a possibility. FIUIX possesses a Zacks Mutual Fund Rank of 4 (Sell), which is based on nine forecasting factors like size, cost, and past performance.
Objective
We classify FIUIX in the Sector - Utilities category, an area that is rife with possible choices. Sector - Utilities funds focus their investments on firms that provide essential daily services to millions of people like electric power, gas distribution, and water supply. All in all, the utility industry is a perfect fit for those investors looking for stability and low volatility.
History of Fund/Manager
Fidelity is based in Boston, MA, and is the manager of FIUIX. Since Fidelity Telecom/Utilities Fund made its debut in November of 1987, FIUIX has garnered more than $1.06 billion in assets. The fund is currently managed by Douglas Simmons who has been in charge of the fund since September of 2005.
Performance
Of course, investors look for strong performance in funds. FIUIX has a 5-year annualized total return of 7.8% and is in the top third among its category peers. But if you are looking for a shorter time frame, it is also worth looking at its 3-year annualized total return of 8.24%, 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. The standard deviation of FIUIX over the past three years is 9.96% compared to the category average of 10.47%. Looking at the past 5 years, the fund's standard deviation is 10.47% compared to the category average of 11.09%. This makes the fund less volatile than its peers over the past half-decade.
Risk Factors
One cannot ignore the volatility of this segment, however, as it is always important for investors to remember the downside to any potential investment. In FIUIX's case, the fund lost 44.57% in the most recent bear market and outperformed its peer group by 0%. This could mean that the fund is an on par choice than comparable funds during a bear market.
Nevertheless, investors should also note that the fund has a 5-year beta of 0.52, 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 positive alpha of 2.58. This means that managers in this portfolio are skilled in picking securities that generate better-than-benchmark returns.
Expenses
As competition heats up in the mutual fund market, costs become increasingly important. Compared to its otherwise identical counterpart, a low-cost product will be an outperformer, all other things being equal. Thus, taking a closer look at cost-related metrics is vital for investors. In terms of fees, FIUIX is a no load fund. It has an expense ratio of 0.77% compared to the category average of 1.26%. So, FIUIX is actually cheaper than its peers from a cost perspective.
Investors need to be aware that with this product, the minimum initial investment is $0; each subsequent investment has no minimum amount.
Bottom Line
Overall, Fidelity Telecom/Utilities Fund ( FIUIX ) has a low Zacks Mutual Fund rank, and in conjunction with its comparatively strong performance, average downside risk, and lower fees, this fund looks like a somewhat weak choice for investors right now.
Your research on the Sector - Utilities 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.