Joined Nov 11, 2007
1,458 Blog Posts

Fidelity Sector Funds Rankings Displaying Odd Mix

I’m not sure what to make of the top 5 ranked funds. While utilities have dropped out, the rankings are still somewhat defensive, favoring healthcare, pharma, and consumers.

  1. FSPHX (Health Care)
  2. FDFAX (Consumer Staples)
  3. FPHAX (Pharmaceuticals)
  4. FSCPX (Consumer Discretionary)
  5. FSPCX (Insurance)

Another way to look at these rankings, since the formula punishes volatility, is that these funds have been some of the least volatile, over the last year. Add a strong bull market with low volatility of these funds and they have risen to the top of the rankings. I’m still not sure what to make of it.

YTD, the Fidelity Sector Fund Rotational System is up 14% vs $SPY return of 16.2%. The system has been ahead of the S&P 500 for most of the year, but the relentless bull moves have finally made sitting 100% invested more attractive than trying to capture alpha through following the hot sectors.

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