Any investors hoping to find a Sector - Other fund could think about starting with Fidelity Select Defense & Aerospace (FSDAX Quick QuoteFSDAX - Free Report) . FSDAX holds a Zacks Mutual Fund Rank of 2 (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 FSDAX. The Fidelity Select Defense & Aerospace made its debut in May of 1984 and FSDAX has managed to accumulate roughly $3.86 billion in assets, as of the most recently available information. Clayton Pfannenstiel is the fund's current manager and has held that role since December of 2021.

Performance

Investors naturally seek funds with strong performance. FSDAX has a 5-year annualized total return of 17.12%, and is in the top third among its category peers. Investors who prefer analyzing shorter time frames should look at its 3-year annualized total return of 31.15%, which places it in the top 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 FSDAX over the past three years is 17.94%. Over the past 5 years, the standard deviation of the fund is 19.13% compared to the category average of 20.07%. This makes the fund less volatile than its peers over the past half-decade.

Risk Factors

With a 5-year beta of 0.76, 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. FSDAX's 5-year performance has produced a positive alpha of 5.7, which means managers in this portfolio are skilled in picking 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, FSDAX is a no load fund. It has an expense ratio of 0.63% compared to the category average of 0.83%. Looking at the fund from a cost perspective, FSDAX is actually cheaper than its peers.

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 consideration. Returns would be less if those were included.

Bottom Line

Overall, Fidelity Select Defense & Aerospace ( FSDAX ) has a high Zacks Mutual Fund rank, and in conjunction with its comparatively strong performance, average downside risk, and lower fees, Fidelity Select Defense & Aerospace ( FSDAX ) looks like a good potential choice for investors right now.

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