Joined Nov 11, 2007
1,458 Blog Posts

Fidelity Sector Funds Rotational System Update

Year-to-date the system is up 13.5% vs. the $SPY gain of 15.5%. This does not include any dividends paid out on from the Fidelity Funds or from $SPY. It also does not include any commissions incurred on the $SPY purchase. There are no fees or commissions incurred when trading the Fidelity Sector Funds, as long as the funds are held for 30 days before selling.

The system is down 2.02% from its recent equity high while $SPY is down 1.63%. It appears that the system may be in the process of catching back up with $SPY.

The top 5 Fidelity Sector Funds, as currently ranked by the system:

  1. FPHAX (Pharmaceuticals)
  2. FSPHX  (Health Care)
  3. FSPCX  (Insurcance)
  4. FSDAX  (Defense and Aerospace)
  5. FBIOX  (Biotechnology)

It is worth mentioning that FSDAX has moved into the top 5 for the first time this year. It closed today at a new all-time high. I’m not sure what that says about Syria, or the sequestration, etc., but I believe it is worth thinking about.

The system is currently long FSPHX, FPHAX, and FDFAX. Unless FDFAX can surge back into the top 3, it will be sold in the next few days.

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  1. jimmy_two_times

    Wood, do you track volatility of the strategy vs vol of SP?

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    • Woodshedder

      I don’t, but it wouldn’t be hard to do so, I don’t think. I’ve pretty much just assumed that the strategy would be more volatile since the returns are larger.

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