The Fidelity Sector Fund Rotational System purchased 2 funds on January 9th. Today makes 30 days since they were purchased, so they are eligible to be sold and new ones purchased.
The system is currently holding FSAIX (Air Transportation), FSLBX (Brokerage and Investment Management), and FSHOX (Construction and Housing). The first two have met the 30 day minimum hold requirement.
The top five ranked funds are
- FSRFX (Transportation)
- FSAVX (Automotive)
- FSLEX (Environment and Alternative Energy)
Since the 2 funds eligible to be sold are still in the top three, they will not be sold. This means that every evening I will re-rank all the funds until FSAIX and/or FSLBX move out of the top three. Then one or both will be replaced.
I’m intrigued by FSLEX moving into the top 5. Perhaps the recent surge of solar has something to do with the fund moving up in the rankings. Also worth noting is that FSHOX has moved out of the top 5 and is currently ranked 8th.
2 Responses to Fidelity Sector Funds Top 5 Ranked Funds
Fletch: It’s all mutual funds these days…
(Serious query: Why not ETF’s instead? Liquidity concerns?)
Jake, the funds are no commission and have no slippage. Beyond the obvious benefits of those particulars, no slippage means backtest results are more likely to be generalizable. Also, and equally important, they seem to trade/trend differently from ETFs.