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Is Fidelity International Real Estate (FIREX) a Strong Mutual Fund Pick Right Now?
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Having trouble finding a Sector - Real Estate fund? Fidelity International Real Estate (FIREX - Free Report) is a possible starting point. FIREX bears a Zacks Mutual Fund Rank of 3 (Hold), which is based on various forecasting factors like size, cost, and past performance.
Objective
Zacks categorizes FIREX in Sector - Real Estate, which is a segment packed with options. Real estate investment trusts (REITs) are a popular income vehicle thanks to their taxation rules, and Sector - Real Estate mutual funds typically invest in them. A REIT is required to pay out at least 90% of its income annually to avoid double taxation, and this technique makes securities in these funds high dividend players-almost bond-like in some cases-though their risk is similar to equities.
History of Fund/Manager
FIREX finds itself in the Fidelity family, based out of Boston, MA. Fidelity International Real Estate made its debut in December of 2004, and since then, FIREX has accumulated about $159.50 million in assets, per the most up-to-date date available. The fund is currently managed by Guillermo De Las Casas who has been in charge of the fund since April of 2010.
Performance
Investors naturally seek funds with strong performance. This fund has delivered a 5-year annualized total return of -0.37%, and is in the bottom 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 4.48%, which places it in the bottom 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. Compared to the category average of 12.39%, the standard deviation of FIREX over the past three years is 14.72%. Looking at the past 5 years, the fund's standard deviation is 15.75% compared to the category average of 13.95%. This makes the fund more volatile than its peers over the past half-decade.
Risk Factors
With a 5-year beta of 0.74, the fund is likely to be less volatile than the market average. Alpha is an additional metric to take into consideration, since it represents a portfolio's performance on a risk-adjusted basis relative to a benchmark, which in this case, is the S&P 500. Over the past 5 years, the fund has a negative alpha of -10.68. This means that managers in this portfolio find it difficult to pick 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, FIREX is a no load fund. It has an expense ratio of 0.88% compared to the category average of 0.96%. FIREX 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.
Fees charged by investment advisors have not been taken into consideration. Returns would be less if those were included.
Bottom Line
Overall, even with its comparatively weak performance, average downside risk, and lower fees, Fidelity International Real Estate ( FIREX ) has a neutral Zacks Mutual Fund rank, and therefore looks a somewhat average choice for investors right now.
This could just be the start of your research on FIREX in the Sector - Real Estate category. Consider going to www.zacks.com/funds/mutual-funds for additional information about this fund, and all the others that we rank 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 International Real Estate (FIREX) a Strong Mutual Fund Pick Right Now?
Having trouble finding a Sector - Real Estate fund? Fidelity International Real Estate (FIREX - Free Report) is a possible starting point. FIREX bears a Zacks Mutual Fund Rank of 3 (Hold), which is based on various forecasting factors like size, cost, and past performance.
Objective
Zacks categorizes FIREX in Sector - Real Estate, which is a segment packed with options. Real estate investment trusts (REITs) are a popular income vehicle thanks to their taxation rules, and Sector - Real Estate mutual funds typically invest in them. A REIT is required to pay out at least 90% of its income annually to avoid double taxation, and this technique makes securities in these funds high dividend players-almost bond-like in some cases-though their risk is similar to equities.
History of Fund/Manager
FIREX finds itself in the Fidelity family, based out of Boston, MA. Fidelity International Real Estate made its debut in December of 2004, and since then, FIREX has accumulated about $159.50 million in assets, per the most up-to-date date available. The fund is currently managed by Guillermo De Las Casas who has been in charge of the fund since April of 2010.
Performance
Investors naturally seek funds with strong performance. This fund has delivered a 5-year annualized total return of -0.37%, and is in the bottom 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 4.48%, which places it in the bottom 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. Compared to the category average of 12.39%, the standard deviation of FIREX over the past three years is 14.72%. Looking at the past 5 years, the fund's standard deviation is 15.75% compared to the category average of 13.95%. This makes the fund more volatile than its peers over the past half-decade.
Risk Factors
With a 5-year beta of 0.74, the fund is likely to be less volatile than the market average. Alpha is an additional metric to take into consideration, since it represents a portfolio's performance on a risk-adjusted basis relative to a benchmark, which in this case, is the S&P 500. Over the past 5 years, the fund has a negative alpha of -10.68. This means that managers in this portfolio find it difficult to pick 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, FIREX is a no load fund. It has an expense ratio of 0.88% compared to the category average of 0.96%. FIREX 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.
Fees charged by investment advisors have not been taken into consideration. Returns would be less if those were included.
Bottom Line
Overall, even with its comparatively weak performance, average downside risk, and lower fees, Fidelity International Real Estate ( FIREX ) has a neutral Zacks Mutual Fund rank, and therefore looks a somewhat average choice for investors right now.
This could just be the start of your research on FIREX in the Sector - Real Estate category. Consider going to www.zacks.com/funds/mutual-funds for additional information about this fund, and all the others that we rank 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.