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Is Fidelity Advisor Technology M (FATEX) a Strong Mutual Fund Pick Right Now?
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Sector - Tech fund seekers should consider taking a look at Fidelity Advisor Technology M (FATEX - Free Report) . FATEX carries a Zacks Mutual Fund Rank of 1 (Strong Buy), which is based on various forecasting factors like size, cost, and past performance.
Objective
FATEX is part of the Sector - Tech category, which boasts an array of different possible selections. With a much more diversified approach, Sector - Tech mutual funds give investors a way to own a stake in a notoriously risky sector. Tech companies are in various industries like semiconductors, software, internet, and networking, among others.
History of Fund/Manager
FATEX is a part of the Fidelity family of funds, a company based out of Boston, MA. The Fidelity Advisor Technology M made its debut in September of 1996 and FATEX has managed to accumulate roughly $705.43 million in assets, as of the most recently available information. The fund's current manager, Adam Benjamin, has been in charge of the fund since July of 2020.
Performance
Of course, investors look for strong performance in funds. This fund carries a 5-year annualized total return of 19.17%, and is in the top third among its category peers. If you're interested in shorter time frames, do not dismiss looking at the fund's 3 -year annualized total return of 15.51%, which places it in the middle third during this time-frame.
It is important to note that the product's returns may not reflect all its expenses. Any fees not reflected would lower the returns. Total returns do not reflect the fund's [%] sale charge. If sales charges were included, total returns would have been lower.
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. FATEX's standard deviation over the past three years is 23.66% compared to the category average of 15.77%. The fund's standard deviation over the past 5 years is 23.67% compared to the category average of 15.6%. This makes the fund more volatile than its peers over the past half-decade.
Risk Factors
The fund has a 5-year beta of 1.31, so investors should note that it is hypothetically more volatile than the market at large. 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. FATEX's 5-year performance has produced a positive alpha of 0.46, which means managers in this portfolio are skilled in picking securities that generate better-than-benchmark returns.
Holdings
Exploring the equity holdings of a mutual fund is also a valuable exercise. This can show us how the manager is applying their stated methodology, as well as if there are any inherent biases in their approach. For this particular fund, the focus is largely on equities that are traded in the United States.
Right now, 93.08% of this mutual fund's holdings are stocks, with an average market capitalization of $527.50 billion. Turnover is 51%, which means this fund makes fewer trades than its comparable peers.
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, FATEX is a load fund. It has an expense ratio of 1.17% compared to the category average of 1.01%. FATEX is actually more expensive than its peers when you consider factors like cost.
Investors should also note that the minimum initial investment for the product is $0 and that each subsequent investment has no minimum amount.
Fees charged by investment advisors have not been taken into considiration. Returns would be less if those were included.
Bottom Line
Overall, even with its comparatively strong performance, worse downside risk, and higher fees, Fidelity Advisor Technology M ( FATEX ) has a high Zacks Mutual Fund rank, and therefore looks a good potential choice for investors right now.
Your research on the Sector - Tech 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. If you want to check out our stock reports as well, make sure to go to Zacks.com to see all of the great tools we have to offer, including our time-tested Zacks Rank.
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Is Fidelity Advisor Technology M (FATEX) a Strong Mutual Fund Pick Right Now?
Sector - Tech fund seekers should consider taking a look at Fidelity Advisor Technology M (FATEX - Free Report) . FATEX carries a Zacks Mutual Fund Rank of 1 (Strong Buy), which is based on various forecasting factors like size, cost, and past performance.
Objective
FATEX is part of the Sector - Tech category, which boasts an array of different possible selections. With a much more diversified approach, Sector - Tech mutual funds give investors a way to own a stake in a notoriously risky sector. Tech companies are in various industries like semiconductors, software, internet, and networking, among others.
History of Fund/Manager
FATEX is a part of the Fidelity family of funds, a company based out of Boston, MA. The Fidelity Advisor Technology M made its debut in September of 1996 and FATEX has managed to accumulate roughly $705.43 million in assets, as of the most recently available information. The fund's current manager, Adam Benjamin, has been in charge of the fund since July of 2020.
Performance
Of course, investors look for strong performance in funds. This fund carries a 5-year annualized total return of 19.17%, and is in the top third among its category peers. If you're interested in shorter time frames, do not dismiss looking at the fund's 3 -year annualized total return of 15.51%, which places it in the middle third during this time-frame.
It is important to note that the product's returns may not reflect all its expenses. Any fees not reflected would lower the returns. Total returns do not reflect the fund's [%] sale charge. If sales charges were included, total returns would have been lower.
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. FATEX's standard deviation over the past three years is 23.66% compared to the category average of 15.77%. The fund's standard deviation over the past 5 years is 23.67% compared to the category average of 15.6%. This makes the fund more volatile than its peers over the past half-decade.
Risk Factors
The fund has a 5-year beta of 1.31, so investors should note that it is hypothetically more volatile than the market at large. 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. FATEX's 5-year performance has produced a positive alpha of 0.46, which means managers in this portfolio are skilled in picking securities that generate better-than-benchmark returns.
Holdings
Exploring the equity holdings of a mutual fund is also a valuable exercise. This can show us how the manager is applying their stated methodology, as well as if there are any inherent biases in their approach. For this particular fund, the focus is largely on equities that are traded in the United States.
Right now, 93.08% of this mutual fund's holdings are stocks, with an average market capitalization of $527.50 billion. Turnover is 51%, which means this fund makes fewer trades than its comparable peers.
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, FATEX is a load fund. It has an expense ratio of 1.17% compared to the category average of 1.01%. FATEX is actually more expensive than its peers when you consider factors like cost.
Investors should also note that the minimum initial investment for the product is $0 and that each subsequent investment has no minimum amount.
Fees charged by investment advisors have not been taken into considiration. Returns would be less if those were included.
Bottom Line
Overall, even with its comparatively strong performance, worse downside risk, and higher fees, Fidelity Advisor Technology M ( FATEX ) has a high Zacks Mutual Fund rank, and therefore looks a good potential choice for investors right now.
Your research on the Sector - Tech 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. If you want to check out our stock reports as well, make sure to go to Zacks.com to see all of the great tools we have to offer, including our time-tested Zacks Rank.