The Fidelity Select Defense and Aerospace Portfolio (FSDAX) is invested in what the name states, research and development in the defense contractors and aerospace industry. The top ten holdings contain 70.17% of the fund’s assets. These top holdings are United Technologies, Boeing, Precision Castparts Corp., Raytheon Corp., Goodrich, Honeywell, Transdigm Group, Lockheed Martin, Heico Corp., and BE Aerospace.
The remaining 25 companies make up the rest of the assets. The annual turnover rate of this fund is 70%. A majority of the companies invested in are domestic, but 1.8% are of foreign origin.
The performance of this fund has fluctuated with the contracts the government has handed out. The one year return as of April 30, 2010 was at 49.46%. The 3 year return was at -1.62%, but the 5 year return was at 7.01%, and the 10 year return was at 9.54%.
The volatility measures of this fund, as compared to the S&P 500, are a Beta at 1.19, the R squared at 79, and the Standard deviation of 27.05. For those thinking about investing, the minimum amount is $2500 and the fund has an expense ratio of 0.94%.
When compared to other mutual funds, this one is rated with 4 stars from Morningstar. This is a below average risk investment with average returns.
One thing is certain about this sector of the economy is that the US government is its biggest customer. This being said, the US Government will always be buying more hardware until there are no more wars to be fought. Which is highly unlikely, and the Fidelity Select Defense and Aerospace Portfolio (FSDAX) will always make money in the long run.
For additional resources about mutual funds and other investments from Fidelity on this website, please view Fidelity Advisors Fund Review.
For another valuable resource, please try Vanguard Explorer Fund Review (VEXPX) on our sister site, www.bestmutualfundsnow.com .
Additional resource for investing from another sister site of Janus Twenty Fund is an article on topperformingmutualfunds.net.
We strive to bring you the latest and most accurate data possible from the home sites of the investment institutions we name. Always remember – the bigger the risk, the larger the reward or loss. Invest with caution.
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