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Is Fidelity Select Transportation (FSRFX) a Strong Mutual Fund Pick Right Now?

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On the lookout for a Sector - Other fund? Starting with Fidelity Select Transportation (FSRFX - Free Report) should not be a possibility at this time. FSRFX bears a Zacks Mutual Fund Rank of 4 (Sell), 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 FSRFX. Fidelity Select Transportation debuted in September of 1986. Since then, FSRFX has accumulated assets of about $511.53 million, according to the most recently available information. The fund's current manager, Julia Pei, has been in charge of the fund since February of 2025.

Performance

Investors naturally seek funds with strong performance. This fund carries a 5-year annualized total return of 9.87%, and it sits in the middle third among its category peers. Investors who prefer analyzing shorter time frames should look at its 3-year annualized total return of 13.22%, 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. The standard deviation of FSRFX over the past three years is 16.9% compared to the category average of 18.11%. Looking at the past 5 years, the fund's standard deviation is 19.92% compared to the category average of 20.4%. This makes the fund less volatile than its peers over the past half-decade.

Risk Factors

The fund has a 5-year beta of 1.1, so investors should note that it is hypothetically more 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. FSRFX's 5-year performance has produced a negative alpha of -2.78, which means managers in this portfolio find it difficult to pick 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, FSRFX is a no load fund. It has an expense ratio of 0.68% compared to the category average of 0.83%. FSRFX is actually cheaper 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 consideration. Returns would be less if those were included.

Bottom Line

Overall, even with its comparatively similar performance, average downside risk, and lower fees, Fidelity Select Transportation ( FSRFX ) has a low Zacks Mutual Fund rank, and therefore looks a somewhat weak choice for investors right now.

For additional information on the Sector - Other area of the mutual fund world, make sure to check out www.zacks.com/funds/mutual-funds. There, you can see more about the ranking process, and dive even deeper into FSRFX too for additional information. And don't forget, Zacks has all of your needs covered on the equity side too! Make sure to check out Zacks.com for more information on our screening capabilities, Rank, and all our articles as well.

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