Top Ranked Fidelity Sector Fund: Utilities

It is official. Using a proprietary ranking system, the top ranked Fidelity sector fund is Utilities. With the S&P and Dow Jones sitting near new highs, having a defensive fund ranked number one is a blinking yellow caution light.

Here are the top five Fidelity sector funds:

1. FSUTX (Utilities)
2. FSAIX (Air Transportation)
3. FSRFX (Transportation)
4. FPHAX (Pharmaceuticals)
5. FBMPX (Multimedia)

I remained concerned that there are two transportation funds in the top 3, which might mean the system is subject to over-concentration in a particular sector. We’ll have to wait and see how things turn out. The system has held both FSAIX and FSRFX for longer than 30 days, which means each can be sold as soon as they drop out of the top 3.