We use cookies to understand how you use our site and to improve your experience. This includes personalizing content and advertising. To learn more, click here. By continuing to use our site, you accept our use of cookies, revised Privacy Policy and Terms of Service.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
Is Fidelity Select Environmental & Alternative (FSLEX) a Strong Mutual Fund Pick Right Now?
Read MoreHide Full Article
There are plenty of choices in the Sector - Other category, but where should you start your research? Well, one fund that might be worth investigating is Fidelity Select Environmental & Alternative (FSLEX - Free Report) . FSLEX bears a Zacks Mutual Fund Rank of 2 (Buy), which is based on nine forecasting factors like size, cost, and past performance.
Objective
History of Fund/Manager
Fidelity is based in Boston, MA, and is the manager of FSLEX. The Fidelity Select Environmental & Alternative made its debut in June of 1989 and FSLEX has managed to accumulate roughly $164.79 million in assets, as of the most recently available information. The fund is currently managed by Kevin Walenta who has been in charge of the fund since November of 2014.
Performance
Investors naturally seek funds with strong performance. This fund has delivered a 5-year annualized total return of 12.32%, and is in the top 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 11.64%, which places it in the top third during this time-frame.
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. FSLEX's standard deviation over the past three years is 12.73% compared to the category average of 13.41%. Looking at the past 5 years, the fund's standard deviation is 12.35% compared to the category average of 13.21%. This makes the fund less volatile than its peers over the past half-decade.
Risk Factors
Investors should always remember the downsides to a potential investment, and this segment carries some risks one should be aware of. FSLEX lost 44.06% in the most recent bear market and outperformed its peer group by 4.35%. These results could imply that the fund is a better choice than its peers during a sliding market environment.
Nevertheless, investors should also note that the fund has a 5-year beta of 1.11, which means it is hypothetically more volatile than the market at large. 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. FSLEX's 5-year performance has produced a negative alpha of -1.91, 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, FSLEX is a no load fund. It has an expense ratio of 0.88% compared to the category average of 1.16%. So, FSLEX is actually cheaper than its peers from a cost perspective.
Investors need to be aware that with this product, the minimum initial investment is $2,500; each subsequent investment has no minimum amount.
Bottom Line
Overall, Fidelity Select Environmental & Alternative has a high Zacks Mutual Fund rank, and in conjunction with its comparatively strong performance, average downside risk, and lower fees, this fund looks like a good potential choice for investors right now.
Don't stop here for your research on Sector - Other funds. We also have plenty more on our site in order to help you find the best possible fund for your portfolio. Make sure to check out www.zacks.com/funds/mutual-funds for more information about the world of funds, and feel free to compare FSLEX to its peers as well for additional information. Zacks provides a full suite of tools to help you analyze your portfolio - both funds and stocks - in the most efficient way possible.
See More Zacks Research for These Tickers
Normally $25 each - click below to receive one report FREE:
Image: Bigstock
Is Fidelity Select Environmental & Alternative (FSLEX) a Strong Mutual Fund Pick Right Now?
There are plenty of choices in the Sector - Other category, but where should you start your research? Well, one fund that might be worth investigating is Fidelity Select Environmental & Alternative (FSLEX - Free Report) . FSLEX bears a Zacks Mutual Fund Rank of 2 (Buy), which is based on nine forecasting factors like size, cost, and past performance.
Objective
History of Fund/Manager
Fidelity is based in Boston, MA, and is the manager of FSLEX. The Fidelity Select Environmental & Alternative made its debut in June of 1989 and FSLEX has managed to accumulate roughly $164.79 million in assets, as of the most recently available information. The fund is currently managed by Kevin Walenta who has been in charge of the fund since November of 2014.
Performance
Investors naturally seek funds with strong performance. This fund has delivered a 5-year annualized total return of 12.32%, and is in the top 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 11.64%, which places it in the top third during this time-frame.
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. FSLEX's standard deviation over the past three years is 12.73% compared to the category average of 13.41%. Looking at the past 5 years, the fund's standard deviation is 12.35% compared to the category average of 13.21%. This makes the fund less volatile than its peers over the past half-decade.
Risk Factors
Investors should always remember the downsides to a potential investment, and this segment carries some risks one should be aware of. FSLEX lost 44.06% in the most recent bear market and outperformed its peer group by 4.35%. These results could imply that the fund is a better choice than its peers during a sliding market environment.
Nevertheless, investors should also note that the fund has a 5-year beta of 1.11, which means it is hypothetically more volatile than the market at large. 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. FSLEX's 5-year performance has produced a negative alpha of -1.91, 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, FSLEX is a no load fund. It has an expense ratio of 0.88% compared to the category average of 1.16%. So, FSLEX is actually cheaper than its peers from a cost perspective.
Investors need to be aware that with this product, the minimum initial investment is $2,500; each subsequent investment has no minimum amount.
Bottom Line
Overall, Fidelity Select Environmental & Alternative has a high Zacks Mutual Fund rank, and in conjunction with its comparatively strong performance, average downside risk, and lower fees, this fund looks like a good potential choice for investors right now.
Don't stop here for your research on Sector - Other funds. We also have plenty more on our site in order to help you find the best possible fund for your portfolio. Make sure to check out www.zacks.com/funds/mutual-funds for more information about the world of funds, and feel free to compare FSLEX to its peers as well for additional information. Zacks provides a full suite of tools to help you analyze your portfolio - both funds and stocks - in the most efficient way possible.