Below are the top 5 ranked Fidelity Sector Funds.
- FSUTX (Utilties)
- FSAIX (Air Transportation)
- FBMPX (Multimedia)
- FIUIX (Telecom and Utilities)
- FBIOX (Biotechnology)
We now have 2 defensive funds in the top 5, and I guess one could make the argument that Biotechnology is a somewhat defensive play. I’m not sure how to characterize Multimedia.
The ranking method is proprietary. Holding the top three funds for a minimum of 30 days and then selling them if they have moved out of the top 3 and replacing them with the new top funds has generated a return of 11.6% YTD against the $SPY return of 10.5%.
Since 2007, the system has generated a compound annual growth rate of 16.41% with a maximum drawdown of -12.42% against the $SPY return of 1.62% with a maximum drawdown of -56.47%.