Any investors hoping to find a Mid Cap Blend fund could think about starting with Fidelity Mid Cap Index FA . FSCKX bears a Zacks Mutual Fund Rank of 1 (Strong Buy), which is based on nine forecasting factors like size, cost, and past performance.
Objective
FSCKX is one of many funds to choose from. Because Mid Cap Blend mutual funds typically feature a portfolio filled with stocks of various sizes and styles, it allows for a diversification strategy focusing on companies with market caps between $2 billion and $10 billion. Mid-cap blends, while offering exciting growth potential, income opportunities, and value picks, offer some stability as well.
History of Fund/Manager
Fidelity is based in Boston, MA, and is the manager of FSCKX. Fidelity Mid Cap Index FA made its debut in September of 2011, and since then, FSCKX has accumulated about $2.15 billion in assets, per the most up-to-date date available. The fund is currently managed by a team of investment professionals.
Performance
Obviously, what investors are looking for in these funds is strong performance relative to their peers. This fund carries a 5-year annualized total return of 8.91%, and it sits in the top third among its category peers. If you're interested in shorter time frames, do not dismiss looking at the fund's 3-year annualized total return of 8.99%, 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. Compared to the category average of 9.43%, the standard deviation of FSCKX over the past three years is 10.6%. Over the past 5 years, the standard deviation of the fund is 10.67% compared to the category average of 9.25%. This makes the fund more volatile than its peers over the past half-decade.
Risk Factors
It's always important to be aware of the downsides to any future investment, so one should not discount the risks that come with this segment.
Nevertheless, investors should also note that the fund has a 5-year beta of 0.99, which means it is hypothetically as volatile as 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. FSCKX has generated a negative alpha over the past five years of -2.05, demonstrating 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, FSCKX is a no load fund. It has an expense ratio of 0.06% compared to the category average of 1.09%. So, FSCKX is actually cheaper than its peers from a cost perspective.
Investors should also note that the minimum initial investment for the product is $10,000 and that each subsequent investment has no minimum amount.
Bottom Line
Overall, Fidelity Mid Cap Index FA ( FSCKX ) 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.
This could just be the start of your research on FSCKXin the Mid Cap Blend 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. For analysis of the rest of your portfolio, make sure to visit Zacks.com for our full suite of tools which will help you investigate all of your stocks and funds in one place.
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Is Fidelity Mid Cap Index FA (FSCKX) a Strong Mutual Fund Pick Right Now?
Any investors hoping to find a Mid Cap Blend fund could think about starting with Fidelity Mid Cap Index FA . FSCKX bears a Zacks Mutual Fund Rank of 1 (Strong Buy), which is based on nine forecasting factors like size, cost, and past performance.
Objective
FSCKX is one of many funds to choose from. Because Mid Cap Blend mutual funds typically feature a portfolio filled with stocks of various sizes and styles, it allows for a diversification strategy focusing on companies with market caps between $2 billion and $10 billion. Mid-cap blends, while offering exciting growth potential, income opportunities, and value picks, offer some stability as well.
History of Fund/Manager
Fidelity is based in Boston, MA, and is the manager of FSCKX. Fidelity Mid Cap Index FA made its debut in September of 2011, and since then, FSCKX has accumulated about $2.15 billion in assets, per the most up-to-date date available. The fund is currently managed by a team of investment professionals.
Performance
Obviously, what investors are looking for in these funds is strong performance relative to their peers. This fund carries a 5-year annualized total return of 8.91%, and it sits in the top third among its category peers. If you're interested in shorter time frames, do not dismiss looking at the fund's 3-year annualized total return of 8.99%, 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. Compared to the category average of 9.43%, the standard deviation of FSCKX over the past three years is 10.6%. Over the past 5 years, the standard deviation of the fund is 10.67% compared to the category average of 9.25%. This makes the fund more volatile than its peers over the past half-decade.
Risk Factors
It's always important to be aware of the downsides to any future investment, so one should not discount the risks that come with this segment.
Nevertheless, investors should also note that the fund has a 5-year beta of 0.99, which means it is hypothetically as volatile as 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. FSCKX has generated a negative alpha over the past five years of -2.05, demonstrating 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, FSCKX is a no load fund. It has an expense ratio of 0.06% compared to the category average of 1.09%. So, FSCKX is actually cheaper than its peers from a cost perspective.
Investors should also note that the minimum initial investment for the product is $10,000 and that each subsequent investment has no minimum amount.
Bottom Line
Overall, Fidelity Mid Cap Index FA ( FSCKX ) 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.
This could just be the start of your research on FSCKXin the Mid Cap Blend 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. For analysis of the rest of your portfolio, make sure to visit Zacks.com for our full suite of tools which will help you investigate all of your stocks and funds in one place.