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Is Fidelity Select IT Services (FBSOX) a Strong Mutual Fund Pick Right Now?
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Have you been searching for an Index fund? You might want to begin with Fidelity Select IT Services (FBSOX - Free Report) . FBSOX possesses 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 responsible for FBSOX, and the company is based out of Boston, MA. Fidelity Select IT Services debuted in February of 1998. Since then, FBSOX has accumulated assets of about $1.67 billion, according to the most recently available information. The fund is currently managed by Elliot Mattingly who has been in charge of the fund since January of 2024.
Performance
Obviously, what investors are looking for in these funds is strong performance relative to their peers. FBSOX has a 5-year annualized total return of 3.95% and it sits in the bottom third among its category peers. Investors who prefer analyzing shorter time frames should look at its 3-year annualized total return of -7.66%, 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. Compared to the category average of 25.79%, the standard deviation of FBSOX over the past three years is 20.84%. Over the past 5 years, the standard deviation of the fund is 22.64% compared to the category average of 25.17%. 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 1.11, which means 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. The fund has produced a negative alpha over the past 5 years of -10.28, which shows that managers in this portfolio find it difficult to pick securities that generate better-than-benchmark returns.
Expenses
Costs are increasingly important for mutual fund investing, and particularly as competition heats up in this market. And all things being equal, a lower cost product will outperform its otherwise identical counterpart, so taking a closer look at these metrics is key for investors. In terms of fees, FBSOX is a no load fund. It has an expense ratio of 0.72% compared to the category average of 1.24%. Looking at the fund from a cost perspective, FBSOX is actually cheaper than its peers.
Investors need to be aware that with this product, the minimum initial investment is $0; each subsequent investment has no minimum amount.
Fees charged by investment advisors have not been taken into considiration. Returns would be less if those were included.
Bottom Line
Overall, Fidelity Select IT Services ( FBSOX ) has a neutral Zacks Mutual Fund rank, and in conjunction with its comparatively weak performance, average downside risk, and lower fees, this fund looks like a somewhat average choice for investors right now.
For additional information on the Index 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 FBSOX too 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.
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Is Fidelity Select IT Services (FBSOX) a Strong Mutual Fund Pick Right Now?
Have you been searching for an Index fund? You might want to begin with Fidelity Select IT Services (FBSOX - Free Report) . FBSOX possesses 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 responsible for FBSOX, and the company is based out of Boston, MA. Fidelity Select IT Services debuted in February of 1998. Since then, FBSOX has accumulated assets of about $1.67 billion, according to the most recently available information. The fund is currently managed by Elliot Mattingly who has been in charge of the fund since January of 2024.
Performance
Obviously, what investors are looking for in these funds is strong performance relative to their peers. FBSOX has a 5-year annualized total return of 3.95% and it sits in the bottom third among its category peers. Investors who prefer analyzing shorter time frames should look at its 3-year annualized total return of -7.66%, 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. Compared to the category average of 25.79%, the standard deviation of FBSOX over the past three years is 20.84%. Over the past 5 years, the standard deviation of the fund is 22.64% compared to the category average of 25.17%. 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 1.11, which means 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. The fund has produced a negative alpha over the past 5 years of -10.28, which shows that managers in this portfolio find it difficult to pick securities that generate better-than-benchmark returns.
Expenses
Costs are increasingly important for mutual fund investing, and particularly as competition heats up in this market. And all things being equal, a lower cost product will outperform its otherwise identical counterpart, so taking a closer look at these metrics is key for investors. In terms of fees, FBSOX is a no load fund. It has an expense ratio of 0.72% compared to the category average of 1.24%. Looking at the fund from a cost perspective, FBSOX is actually cheaper than its peers.
Investors need to be aware that with this product, the minimum initial investment is $0; each subsequent investment has no minimum amount.
Fees charged by investment advisors have not been taken into considiration. Returns would be less if those were included.
Bottom Line
Overall, Fidelity Select IT Services ( FBSOX ) has a neutral Zacks Mutual Fund rank, and in conjunction with its comparatively weak performance, average downside risk, and lower fees, this fund looks like a somewhat average choice for investors right now.
For additional information on the Index 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 FBSOX too 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.