If you have been looking for Sector – Tech funds, a place to start could be Fidelity Advisor Semiconductors A (FELAX). FELAX bears a Zacks Mutual Fund Rank of 1 (Strong Buy), which is based on various forecasting factors like size, cost, and past performance.
Objective
FELAX is part of the Sector – Tech category, which boasts an array of different possible selections. With a much more diversified approach, Sector – Tech mutual funds give investors a way to own a stake in a notoriously risky sector. Tech companies are in various industries like semiconductors, software, internet, and networking, among others.
History of Fund/Manager
Fidelity is based in Boston, MA, and is the manager of FELAX. Fidelity Advisor Semiconductors A debuted in December of 2000. Since then, FELAX has accumulated assets of about $2.09 billion, according to the most recently available information. The fund’s current manager, Adam Benjamin, has been in charge of the fund since March of 2020.
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 29.55%, 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 41.2%, which places it in the top 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. The standard deviation of FELAX over the past three years is 28.26% compared to the category average of 12.31%. The fund’s standard deviation over the past 5 years is 33.06% compared to the category average of 14.58%. This makes the fund more volatile than its peers over the past half-decade.
Risk Factors
Investors should note that the fund has a 5-year beta of 1.69, so it is likely going to be more volatile than the market at large. Because alpha represents a portfolio’s performance on a risk-adjusted basis relative to a benchmark, which is the S&P 500 in this case, one should pay attention to this metric as well. FELAX’s 5-year performance has produced a positive alpha of 13.3, which means managers in this portfolio are skilled in picking securities that generate better-than-benchmark returns.