Sector - Other fund seekers should consider taking a look at Fidelity Environmental & Alt Energy (FSLEX Quick QuoteFSLEX - Free Report) . FSLEX bears a Zacks Mutual Fund Rank of 1 (Strong Buy), which is based on various forecasting factors like size, cost, and past performance.

History of Fund/Manager

Fidelity is based in Boston, MA, and is the manager of FSLEX. Fidelity Environmental & Alt Energy made its debut in June of 1989, and since then, FSLEX has accumulated about $672.99 million in assets, per the most up-to-date date available. The fund is currently managed by Brian Aronson who has been in charge of the fund since February of 2025.

Performance

Obviously, what investors are looking for in these funds is strong performance relative to their peers. FSLEX has a 5-year annualized total return of 11.64%, and is in the middle 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 24.26%, 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. Compared to the category average of 18.5%, the standard deviation of FSLEX over the past three years is 17.56%. Over the past 5 years, the standard deviation of the fund is 20.2% compared to the category average of 20.07%. 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. FSLEX has a 5-year beta of 1.2, which means it is likely to be more volatile than the market average. 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 -2.39. 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, FSLEX is a no load fund. It has an expense ratio of 0.69% compared to the category average of 0.83%. Looking at the fund from a cost perspective, FSLEX is actually cheaper than its peers.

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, Fidelity Environmental & Alt Energy ( FSLEX ) has a high Zacks Mutual Fund rank, and in conjunction with its comparatively similar performance, average downside risk, and lower fees, this fund looks like a great potential choice for investors right now.

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