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Is Fidelity Advisor Semiconductors A (FELAX) a Strong Mutual Fund Pick Right Now?
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On the lookout for a Sector - Tech fund? Starting with Fidelity Advisor Semiconductors A (FELAX - Free Report) is one possibility. FELAX carries a Zacks Mutual Fund Rank of 1 (Strong Buy), which is based on nine forecasting factors like size, cost, and past performance.
Objective
We note that FELAX is a Sector - Tech option, and this area is loaded with many options. Found in a wide number of industries such as semiconductors, software, internet, and networking, tech companies are everywhere. Thus, Sector - Tech mutual funds that invest in technology let investors own a stake in a notoriously volatile sector, but with a much more diversifies approach.
History of Fund/Manager
Fidelity is based in Boston, MA, and is the manager of FELAX. Fidelity Advisor Semiconductors A made its debut in December of 2000, and since then, FELAX has accumulated about $99.80 million in assets, per the most up-to-date date available. The fund's current manager, Stephen Barwikowski, has been in charge of the fund since January of 2009.
Performance
Obviously, what investors are looking for in these funds is strong performance relative to their peers. FELAX has a 5-year annualized total return of 19.01% and is 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 18.51%, 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 11.49%, the standard deviation of FELAX over the past three years is 22.82%. The fund's standard deviation over the past 5 years is 21.38% compared to the category average of 11.59%. 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. FELAX lost 57.28% in the most recent bear market and underperformed comparable funds by 3%. These results could imply that the fund is a worse choice than its peers during a sliding market environment.
Nevertheless, investors should also note that the fund has a 5-year beta of 1.43, 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. FELAX has generated a positive alpha over the past five years of 4.54, demonstrating that 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, FELAX is a load fund. It has an expense ratio of 1.14% compared to the category average of 1.39%. Looking at the fund from a cost perspective, FELAX 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.
Bottom Line
Overall, Fidelity Advisor Semiconductors A ( FELAX ) has a high Zacks Mutual Fund rank, and in conjunction with its comparatively strong performance, worse downside risk, and lower fees, Fidelity Advisor Semiconductors A ( FELAX ) looks like a good potential choice for investors right now.
This could just be the start of your research on FELAXin the Sector - Tech 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. If you want to check out our stock reports as well, make sure to go to Zacks.com to see all of the great tools we have to offer, including our time-tested Zacks Rank.
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Is Fidelity Advisor Semiconductors A (FELAX) a Strong Mutual Fund Pick Right Now?
On the lookout for a Sector - Tech fund? Starting with Fidelity Advisor Semiconductors A (FELAX - Free Report) is one possibility. FELAX carries a Zacks Mutual Fund Rank of 1 (Strong Buy), which is based on nine forecasting factors like size, cost, and past performance.
Objective
We note that FELAX is a Sector - Tech option, and this area is loaded with many options. Found in a wide number of industries such as semiconductors, software, internet, and networking, tech companies are everywhere. Thus, Sector - Tech mutual funds that invest in technology let investors own a stake in a notoriously volatile sector, but with a much more diversifies approach.
History of Fund/Manager
Fidelity is based in Boston, MA, and is the manager of FELAX. Fidelity Advisor Semiconductors A made its debut in December of 2000, and since then, FELAX has accumulated about $99.80 million in assets, per the most up-to-date date available. The fund's current manager, Stephen Barwikowski, has been in charge of the fund since January of 2009.
Performance
Obviously, what investors are looking for in these funds is strong performance relative to their peers. FELAX has a 5-year annualized total return of 19.01% and is 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 18.51%, 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 11.49%, the standard deviation of FELAX over the past three years is 22.82%. The fund's standard deviation over the past 5 years is 21.38% compared to the category average of 11.59%. 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. FELAX lost 57.28% in the most recent bear market and underperformed comparable funds by 3%. These results could imply that the fund is a worse choice than its peers during a sliding market environment.
Nevertheless, investors should also note that the fund has a 5-year beta of 1.43, 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. FELAX has generated a positive alpha over the past five years of 4.54, demonstrating that 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, FELAX is a load fund. It has an expense ratio of 1.14% compared to the category average of 1.39%. Looking at the fund from a cost perspective, FELAX 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.
Bottom Line
Overall, Fidelity Advisor Semiconductors A ( FELAX ) has a high Zacks Mutual Fund rank, and in conjunction with its comparatively strong performance, worse downside risk, and lower fees, Fidelity Advisor Semiconductors A ( FELAX ) looks like a good potential choice for investors right now.
This could just be the start of your research on FELAXin the Sector - Tech 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. If you want to check out our stock reports as well, make sure to go to Zacks.com to see all of the great tools we have to offer, including our time-tested Zacks Rank.