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Is Fidelity Select Technology (FSPTX) a Strong Mutual Fund Pick Right Now?
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If you have been looking for Mutual Fund Equity Report fund category, a potential starting could be Fidelity Select Technology (FSPTX - Free Report) . FSPTX bears a Zacks Mutual Fund Rank of 3 (Hold), 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 FSPTX. Fidelity Select Technology debuted in July of 1981. Since then, FSPTX has accumulated assets of about $7.53 billion, according to the most recently available information. The fund's current manager, Adam Benjamin, has been in charge of the fund since January of 2022.
Performance
Obviously, what investors are looking for in these funds is strong performance relative to their peers. FSPTX has a 5-year annualized total return of 11.66% 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 8.01%, 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 27.15%, the standard deviation of FSPTX over the past three years is 26.82%. The standard deviation of the fund over the past 5 years is 24.03% compared to the category average of 24.5%. This makes the fund less volatile than its peers over the past half-decade.
Risk Factors
Investors should note that the fund has a 5-year beta of 1.18, 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. With a positive alpha of 1.46, managers in this portfolio are skilled in picking securities that generate better-than-benchmark returns.
Holdings
Exploring the equity holdings of a mutual fund is also a valuable exercise. This can show us how the manager is applying their stated methodology, as well as if there are any inherent biases in their approach. For this particular fund, the focus is primarily on equities that are traded in the United States.
Right now, 95.9% of this mutual fund's holdings are stocks, with an average market capitalization of $523.76 billion. Turnover is 87%, which means this fund makes more trades per year than the comparable average.
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, FSPTX is a no load fund. It has an expense ratio of 0.69% compared to the category average of 1.30%. From a cost perspective, FSPTX 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 Select Technology ( FSPTX ) has a neutral Zacks Mutual Fund rank, and in conjunction with its comparatively strong performance, average downside risk, and lower fees, this fund looks like a somewhat average choice for investors right now.
Don't stop here for your research on Mutual Fund Equity Report 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 FSPTX to its peers as well for additional information. If you are more of a stock investor, make sure to also check out our Zacks Rank, and our full suite of tools we have available for novice and professional investors alike.
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Is Fidelity Select Technology (FSPTX) a Strong Mutual Fund Pick Right Now?
If you have been looking for Mutual Fund Equity Report fund category, a potential starting could be Fidelity Select Technology (FSPTX - Free Report) . FSPTX bears a Zacks Mutual Fund Rank of 3 (Hold), 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 FSPTX. Fidelity Select Technology debuted in July of 1981. Since then, FSPTX has accumulated assets of about $7.53 billion, according to the most recently available information. The fund's current manager, Adam Benjamin, has been in charge of the fund since January of 2022.
Performance
Obviously, what investors are looking for in these funds is strong performance relative to their peers. FSPTX has a 5-year annualized total return of 11.66% 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 8.01%, 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 27.15%, the standard deviation of FSPTX over the past three years is 26.82%. The standard deviation of the fund over the past 5 years is 24.03% compared to the category average of 24.5%. This makes the fund less volatile than its peers over the past half-decade.
Risk Factors
Investors should note that the fund has a 5-year beta of 1.18, 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. With a positive alpha of 1.46, managers in this portfolio are skilled in picking securities that generate better-than-benchmark returns.
Holdings
Exploring the equity holdings of a mutual fund is also a valuable exercise. This can show us how the manager is applying their stated methodology, as well as if there are any inherent biases in their approach. For this particular fund, the focus is primarily on equities that are traded in the United States.
Right now, 95.9% of this mutual fund's holdings are stocks, with an average market capitalization of $523.76 billion. Turnover is 87%, which means this fund makes more trades per year than the comparable average.
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, FSPTX is a no load fund. It has an expense ratio of 0.69% compared to the category average of 1.30%. From a cost perspective, FSPTX 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 Select Technology ( FSPTX ) has a neutral Zacks Mutual Fund rank, and in conjunction with its comparatively strong performance, average downside risk, and lower fees, this fund looks like a somewhat average choice for investors right now.
Don't stop here for your research on Mutual Fund Equity Report 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 FSPTX to its peers as well for additional information. If you are more of a stock investor, make sure to also check out our Zacks Rank, and our full suite of tools we have available for novice and professional investors alike.